The Impact of Swiftonomics & Superstar Concerts on Economic Growth

The impact of superstar concerts on economic growth has garnered renewed interest, with Taylor Swift’s “The Eras Tour” becoming a global phenomenon post-COVID. The tour is expected to generate around $5 billion in consumer spending in the United States alone. For every $100 spent on Swift's live performances, it is estimated that an additional $300 is generated in local spending on hotels, retail, and other services.

In Singapore, economists have recently upgraded the first-quarter growth forecast, partly attributing the gains to Taylor Swift’s six concerts in the city. Hotels and airlines have reported a surge in demand for flights and accommodation around the concert dates, with increases of up to 30%.

Understanding Concert Impact Using Mobility Data

To examine the impact of these concerts, we utilised mobility data sourced from over 200,000 apps. This data helps us understand where people are before and after the concert, providing insights into their movements and spending patterns.

Besides hosting Taylor Swift’s concerts, Singapore had several high-profile concerts in the first quarter, including performances by Coldplay and Ed Sheeran. Our analysis showed that the crowd at the National Stadium began to build up around 2 PM, peaking at 6 PM. Taylor Swift's concert recorded the highest average number of devices per day, followed by Ed Sheeran's (See Figure 1).

Figure 1: Footfall Density by Concert Artist

Source: DataSense by PropertyGuru For Business

For Taylor Swift’s concert on the first day, we tracked the attendees' locations starting at 6 AM. Many attendees were detected at Changi Airport and the Causeway, indicating a significant influx of visitors to Singapore. While many attendees originated from populous estates like Punggol, a notable number of first pings were located at the southern tip of Singapore (See Figure 2), where most hotels are situated, confirming the hypothesis of increased hotel occupancy due to the concert.

Figure 2: First Ping of Device on Taylor Swift Day 1 Concert

After the concert ended, we tracked the attendees' locations until 5 AM the next day. We observed cross-border movements through the Causeway and Changi Airport (Figure 2). More significantly, many attendees returned to hotel locations, indicating increased spending in hotels and retail outlets for at least two days.

Figure 3: Last Ping of Device on Taylor Swift Day 1 Concert

Concerts Impact Varies

While the economic impact from Taylor Swift’s concert is evident, not all concerts have similar outcomes for the hospitality and retail sectors. The exclusivity of the concert plays a significant role. Taylor Swift’s concerts had higher average footfall compared to Coldplay’s. Coldplay performed in multiple cities across Asia in early 2024, likely leading to lower footfall in Singapore.

The economic impact of regional stars catering to specific ethnic groups tends to be more localised. For instance, mobility data for Fish Leong's concert showed pings distributed across key populous estates in Singapore, rather than clustered in the Core Central Region where most hotels are located.

Key Findings

Our analysis indicates that superstar concerts greatly benefit hotels and retailers through increased spending by attendees- local and overseas. It is advantageous for governments, hotel, and retail associations to attract such concerts to boost spending. The impact is especially amplified if the concerts are exclusive to Singapore and appeal across Southeast Asia. Additionally, we noted that some visitors come to Singapore on day trips, likely due to high full-day hotel rates. Hotels with spare capacity could consider offering half-day stays to accommodate these visitors.

This analysis underscores the significant economic benefits of hosting superstar concerts and the importance of leveraging mobility data to understand and maximise these impacts.

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