Photo: Taylor Swift Official Store
Music tourism has seen rapid growth in recent years, especially since the pandemic, with more travelers prioritizing trips that involve cultural and significant events, such as music festivals and concerts. Valued at US$6.6 billion in 2023, the market is expected to continue to grow with rising demand for mega festivals and concert tours, according to Custom Market Insights. It is expected to reach US$13.8 billion by 2032. Music tourism involves travel experiences driven by the desire to attend a music event and includes booking flights, hotels, and dining at local establishments in the host country. Travelers were typically attracted by a country’s famous landmarks and rich history, but recently the focus has shifted to global music events that governments leverage to boost local economies.
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The big impact of music tourism
Photo: Atlanta Voice
Large music festivals and concerts primarily influence the global music tourism market, and when combined with travel, countries can attract diverse audiences looking to broaden their cultural experience. Amadeus has shown that music tourism is essential to stimulating local economies, as artists tour with huge fan bases and global reach. Events such as Taylor Swift’s Eras Tour, Coldplay’s Spheres Tour, and Beyoncé’s Renaissance World Tour have proven to have a significant impact on searches and bookings for destinations featured on their tour schedules. The reason these events have such a significant impact on revitalizing local economies is due to the artists’ global reach and the exclusivity of their tour destinations, which are fundamental factors in attracting tourists and driving economic growth. For example, according to Amadeus, Beyoncé’s Renaissance World Tour led to a 91% surge in flights to Romania, a 62% increase in interest in Athens, and an astounding 90,000 audience attendance in Stockholm.
Marketing to the right audience
The experience of attending a significant event is built by continued buzz on social media, often portraying the event as a “must-see” or “once-in-a-lifetime” experience. This drives market demand. This appeals to most artists’ demographics, especially Gen Z and Millennials, groups who are generally keen on pop culture and more likely to travel. Allianz Travel reports that more than half (56%) of Gen Z and 60% of Millennials plan to travel for music festivals in 2024. This is an example of how travelers are prioritizing experiences over material things. With the rise of social media and technology, we are now seeing influencers promoting music destinations. We also now have access to global streaming platforms to discover musical talent that may pique our interest and spark our desire to see them live. Another driver to note is that artists cannot visit every destination, so the promise of live performances by famous artists and the opportunity to participate in an exclusive concert experience is a very attractive factor for those considering traveling.
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Collaboration with local tourism organizations
Photo: The Business Times
Tourism is a major source of income for cities, with local attractions and hotels relying mainly on tourists to operate. Envols compiled that 67% of respondents who chose to travel said they wanted to get the most out of their travel experience by exploring the surrounding area and discovering new cities. This means economic benefits for local businesses and services. Partnerships have allowed local businesses to increase their visibility and reach, and capitalize on the growth of global music tourism to fund local infrastructure development and boost the local economy. Cities such as Singapore have realized the huge potential of music tourism to drive economic growth, and have seen great success with the partnership between the Singapore Tourism Board and pop star Taylor Swift. The deal involved paying her up to $3 million per concert and bringing her shows exclusively to Singapore, attracting fans from across the region and increasing passenger numbers by 20% year-on-year. In response, numerous local businesses and hotels have capitalized on the large influx of tourists, offering themed products, experiences and packages inspired by Swift.
The results were a huge success, with exclusive tour packages costing thousands, sometimes tens of thousands of dollars, selling out, with 90% of the consumers coming from overseas. The growth potential of the economic benefits of music tourism is largely due to music fans’ willingness to spend significantly more than the ticket price for a local experience, as evidenced by travel site Klook and reports of a 50% increase in sales at Singapore attractions. All these factors worked together to create an economic boom for Singapore, with the star’s deal generating a massive amount of approximately $260-375 million and a 2.9% increase in GDP, the highest in six years. Thus, high-profile music events and tourism have had an undeniable economic impact on the growing local economy, due to their expanding reach and the habits of travelers who want to make the most of their travels.
Travel Packages
Photo: Tomorrowland
With the rise of tourism, there is a trend towards package deals that seamlessly combine music and travel for travelers. This trend is clear, as high-profile events attract a wide audience, but the mounting costs and stressful arrangements for accommodation and travel often deter interested parties from attending. To mitigate this factor, festivals and travel companies offer package deals to ensure consumers have a hassle-free experience, which can lead to increased sales and attendance. As an example, the well-known European music festival Tomorrowland offers a package deal that includes event tickets, travel, and accommodation. Considering that most music festivals are held in rural areas, travel packages sound more appealing to potential consumers as they are hassle-free and usually presented as the most cost-effective option.
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Obstacles
Meanwhile, the rapid growth of music tourism has great potential to boost local economies and has garnered many successes and good track records. Several significant threats to music tourism could impede future growth and profitability. Most notably, as we have seen in the past few years, the pandemic could cause health and safety concerns to have a devastating impact on the music tourism market. Concerns about safety at large gatherings could be replaced by health and safety concerns such as fears of contagion, the risk of dangerous crowd accidents, and “crowd jostling,” which could lead to event cancellations, reduced attendance, and financial losses. In addition, unpredictable factors such as artist cancellations and environmental conditions also significantly impact music tourism. These factors are difficult to mitigate and can lead to disappointment and loss of confidence in factors beyond the organizers’ control.
While there are some potential threats to the rise of music tourism, with strategic marketing by event organizers and local organizations and great growth potential, the trend shows no signs of slowing down. Getting involved in and leveraging music tourism can provide a significant boost to local economies. Judging by the satisfying results and significant beneficial outcomes of recent examples, continued growth is expected.
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