Taylor Swift and Coldplay concerts likely to spike inflation in Singapore

Singapore is all set to host some of the world’s biggest musical concerts in January and March 2024 with Taylor Swift and Coldplay hosting 6 concerts each. 

These concerts are not only attracting fans from all over the world but also intriguing global economists to analyse the financial impacts of these mega-events.

The concerts will host fans from all over South East Asia, boosting the local economy with a rise in the demand for hospitality, nightlife, food and beverage (F&B), and other industries.

All 330,000 tickets from Taylor Swift’s Eras Tour in Singapore were sold within the first 8 hours. Coldplay, a British rock band, faced similar overwhelming demands and added 3 extra concerts in Singapore despite having concerts in Jakarta, Bangkok, Manila and Kuala Lumpur in the coming months. 

Concert’s contribution to the local economy

Despite rising inflation and global economies taking a downturn, Taylor Swift has been able to spur consumption in the cities she had visited so far. According to the reports released by QuestionPro, Taylor Swift’s concerts in the US could generate close to $5 billion in total revenue, pumping a huge surge in the local economies. 

Taylor Swift's Eras Tour will conclude on 17th August 2024 in London | Image credit: ANI

Taylor’s total contribution to the economy is not limited to ticket sales but also includes merchandise, hospitality, retail, food and beverages, advertising and marketing, and security and management services. All these sectors are likely to receive a pump in demand in Singapore when Taylor Swift and Coldplay will be performing in 2024.

It must be noted that Singapore will also be the only stop for Taylor Swift in South East Asia before flying to Australia for a 10-day tour. During this six-concert event, the fans are likely to squeeze out their savings to enjoy the concert. 

Taylor Swift to drive inflation in Singapore 

Over 300,000 fans will be visiting Singapore in March 2024 to attend Taylor Swift’s Eras Tour concerts and its effects are already visible in the local market. Even before the release of Taylor’s Eras Tour tickets, the prices for hotel rooms and regional flights in Singapore recorded a spike of over 20 per cent. 

As per airline booking websites in Singapore, airfares from Manila and Jakarta are about 50 per cent to 130 per cent more expensive during the period of Swift’s concerts. As the concert dates draw nearer, experts predict that the prices of commodities and services directly linked to the event will continue to rise, further impacting the local economy. 

This trend is reminiscent of what occurred in Sweden when global superstar Beyoncé kicked off her world tour in Stockholm, causing a noteworthy 0.3 per cent spike in monthly inflation.

Michael Grahn, Chief Economist at Danske Bank, attributed the inflationary surge in Sweden to the grand scale of Beyoncé's concert, which drove up prices for relevant goods and services, ultimately influencing the country's overall monthly inflation rate.

Given the immense popularity of Taylor Swift and the magnitude of her Eras Tour with six concerts in Singapore, hosting 300,000 fans, the potential effects on the local economy are beyond imagination. As fans eagerly await the concert dates, the anticipation is not only confined to the world of music but also extends to how this grand event will impact the city's economic landscape.