Oasis move the dial on national economics
UK ticket sales for the Oasis reunion tour have reportedly boosted ‘non-essential spending’ by British consumers to the highest level this year in September, in further proof of live music’s value to the economy.
The Oasis Live ‘25 Tour was the biggest-ever concert launch in UK and Ireland, with more than 10 million fans from 158 countries attempting to buy tickets for the group’s first shows since 2009.
The unprecedented demand for Oasis tickets bolstered a 36% annual jump in spending on shows and concerts, which contributed to a 2.7% year-on-year increase in non-essential spending, according to consumer card data compiled by Barclays.
Dynamic ticketing on these shows meant that some fans were charged more than £350 for tickets with an initial face value of £150 – a move that subsequently prompted an investigation by the UK government.
In the last year, blockbuster tours and festivals have significantly impacted the economy, both through consumer spending and inflation.
In the UK, it was recently revealed that the live music sector contributed a record £6.1 billion (€7.2bn) to the economy for the first time last year.
It was recently revealed that the UK live music sector contributed a record £6.1 billion (€7.2bn) to the economy
The growth in the sector last year was driven largely by concert revenues, which jumped by 19% year-on-year and accounted for nearly three quarters (73.5%) of the total, boosted by major tours by acts such as Beyoncé and Coldplay.
Concert tickets have also been shown to influence inflation. Earlier this year, The Bank of England faced a dilemma about whether to cut interest rates after official figures showed inflation proving stickier than initially expected. Some economists attributed the issue to consumer spending around Taylor Swift’s blockbuster The Eras Tour as it moved through the UK.
“While difficult to fully untangle, it’s certainly very possible that some Taylor Swift effects were at play here and could very well reverse out next month,” said Sanjay Raja, chief UK economist at Deutsche Bank.
This was also the case last year as confirmed by a 2023 report from the ONS which stated that prices for recreational and cultural goods and services had increased 6.8% in the year to May 2023, up from 6.4% in April and the highest rate since August 1991.
The report came weeks after Beyoncé’s Renaissance tour was blamed for Sweden’s inflation rise after kicking off at Stockholm’s Friends Arena last month. The tour reportedly prompting a surge in restaurant and hotel pricing in the area as tens of thousands of fans arrived in the city.
“It’s certainly very possible that some Taylor Swift effects were at play here and could very well reverse out next month”
Michael Grahn, chief economist at Danske Bank, told CNN that the additional demand from Beyoncé’s fans was behind two-thirds of the price rises seen in the hospitality sector in May. As a result, Sweden reported higher-than-expected inflation of 9.7% during the month.
As a result of the economic impact of live music, A-list tours have become increasingly hot commodities for governments, with some bidding to secure exclusive concerts.
Earlier this year, it was reported that Singapore struck an exclusivity deal with Taylor Swift and her promoters to make the island nation her only Eras tour stop in Southeast Asia.
The Singapore Tourism Board (STB) authorised a grant for Swift to perform at the 55,000-cap Singapore National Stadium next month, allegedly on the condition she would not play any other countries in the region.
This ignited fierce competition among other Southeast Asian nations, with the Philippines pledging to build a “Taylor Swift-ready” stadium by 2028.
Unsurprisingly, Singapore’s investment in Taylor Swift paid off with the government later crediting live music with helping to rejuvenate tourism in Singapore.
A-list tours have become increasingly hot commodities in cities’ efforts to boost tourism
By August, the country had welcomed around 6.3 million international visitors in 2023, putting it on track towards meeting its goal of 12-14m.
In another high-profile case, it emerged that the Western Australian government paid A$8 million to subsidise two Coldplay concerts.
The band played two nights at Perth’s Optus Stadium – their first gigs in Western Australia since 2009 – in November 2023 as part of their Music of the Spheres World Tour, in what was hailed as a “major tourism coup” for the country’s fourth most populous city.
Presented by the WA government, through Tourism WA, and Live Nation, the Australian-exclusive gigs were promoted alongside hotel packages designed to encourage visitors to stay longer in Perth and explore the region further, creating additional economic benefits.
A Guardian report revealed that $8m (€5m) was paid to Live Nation in relation to the performances, which Tourism WA said injected “tens of millions of visitor spend” into the state’s economy.
It follows a similar disclosure around Coldplay’s four nights at the 50,000-cap Estádio Cidade de Coimbra in Portugal in May last year.
The concerts attracted controversy when it was revealed promoter Everything is New would receive €440,000 from the municipality and was exempted from “municipal fees and prices” for the shows. The authority also spent €28,000 on restoring the stadium’s pitch.
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Live music contributed £6bn to UK economy in 2023
The UK live music sector contributed a record £6.1 billion (€7.2bn) to the economy for the first time last year, according to freshly published data from trade body LIVE.
LIVE’s annual UK Live Music report shows live music achieved a year-on-year uptick of 17% since 2022 and an increase of 35% on the last pre-pandemic year of 2019. Live music also supported jobs for nearly 230,000 people last year – an increase of 9.4% since 2019.
The data analysis from research agency CGA by NIQ covers more than 55,000 gigs, concerts, festivals and events. It reveals the growth in the sector last year was driven largely by concert revenues, which jumped by 19% year-on-year and accounted for nearly three quarters (73.5%) of the total, boosted by major tours by acts such as Beyoncé and Coldplay.
Despite the positive headline figures however, LIVE warns that significant challenges remain for grassroots music venues, small festivals, and up-and-coming artists, with 36 festivals cancelled and 125 grassroots music venues closed permanently last year.
“2023 delivered significant growth for many sections of the live music ecosystem,” says LIVE CEO Jon Collins. “We had some of the biggest names in music sell out tours and festivals across the UK, but we also saw pressure build up across our industry, leading to grassroots music venues and festivals left with no choice but to close down in the face of rising costs.”
“With a lower rate of VAT on tickets, we could see the sector grow further”
In response, LIVE is calling on the government to reduce the current rate of 20% VAT on tickets. It also supports the recommendation in the Culture, Media and Sport Committee’s report on Grassroots Music Venues that government should introduce a temporary cut to VAT to stimulate grassroots music activity, while undertaking a comprehensive economic analysis of the impact of a cut to VAT on all concert tickets.
“We welcome the commitments made by the government to put the creative industries at the centre of the UK’s economic growth plan,” adds Collins. “Reintroducing a lower rate of VAT on tickets would bring the UK into line with international competitors and would be pivotal in unlocking the economic potential of our industry. With a lower rate of VAT on tickets, we could see the sector grow further, supporting more jobs, generating more investment, and putting on more gigs, festivals and tours for people to enjoy.”
On a regional basis, the data shows that London accounted for nearly a third (30.6%) of 2023’s total live music revenue, followed by Manchester at 7.4%. Glasgow took the lead in Scotland with 5.5% of the UK’s share, while other cities in the top 10 included Edinburgh, Birmingham, Cardiff, and Belfast.
“Our live music sector is world-class offering concerts, festivals, gigs and more to suit every music taste,” adds LIVE chair Steve Lamacq. “Last year, we saw much of the live music sector triumph over adversity; faced with a spike in costs as a result of inflation, the cost-of-living crisis and labour shortages, fans had more concerts and festivals than ever to enjoy.
“However, we cannot forget that urgent action is needed to support the many grassroots venues, artists, and festivals which continued to struggle last year.”
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Cities up stakes for A-list tours in tourism push
As A-list tours become increasingly hot commodities in cities’ efforts to boost tourism, it has emerged the Western Australian government paid A$8 million to subsidise two Coldplay concerts.
The band played two nights at Perth’s Optus Stadium – their first gigs in Western Australia since 2009 – in November 2023 as part of their Music of the Spheres World Tour, in what was hailed as a “major tourism coup” for the country’s fourth most populous city.
Presented by the WA government, through Tourism WA, and Live Nation, the Australian-exclusive gigs were promoted alongside hotel packages designed to encourage visitors to stay longer in Perth and explore the region further, creating additional economic benefits.
A new Guardian report has revealed that $8m (€5m) was paid to Live Nation in relation to the performances, which Tourism WA said injected “tens of millions of visitor spend” into the state’s economy. The body said the award followed “a rigorous assessment, cost benefit analysis, review and approvals process, including review and approval by the Tourism WA Board, Treasury and final sign off by the minister for tourism and premier”.
Coldplay are returning to Australia and New Zealand this October and November to perform in Sydney, Melbourne and Auckland.
It follows a similar disclosure around Coldplay’s four nights at the 50,000-cap Estádio Cidade de Coimbra in Portugal in May last year. The concerts attracted controversy when it was revealed promoter Everything is New would receive €440,000 from the municipality and was exempted from “municipal fees and prices” for the shows. The authority also spent €28,000 on restoring the stadium’s pitch.
In return, the promoter had to ensure the council was included as a partner on press materials and within press communications, among other obligations. Coimbra City Council mayor José Manuel Silva called the agreement “one of the best deals ever in this area”, which he said would “place the city on the route of major world events”.
The shows were attended by 211,000 fans overall, generating €36 million for the local economy, with each visitor spending an average of €180, concluded a study by the Instituto Superior de Contabilidade e Administração de Coimbra (ISCAC).
The Singapore Tourism Board authorised a grant for Taylor Swift to perform six nights at Singapore National Stadium in March 2024
In another high-profile case earlier this year, Singapore reportedly struck an exclusivity deal with Taylor Swift to make the island nation her only Eras tour stop in south-east Asia.
The Singapore Tourism Board (STB) authorised a grant for Swift to perform six nights at the 55,000-cap Singapore National Stadium in March 2024, allegedly on the condition she would not play any other countries in the region.
Thai PM Srettha Thavisin alleged the Singapore government offered $2 million to $3m (€1.4m to €2.1m) per show for exclusive rights, after enquiring why the tour would not be stopping in Thailand.
“[Promoter AEG] didn’t tell me the exact figure but they said the Singapore government offers subsidies of between $2m and $3m,” said Srettha. “But the Singaporean government is clever. They told [organisers] not to hold any other shows in [south-east] Asia.”
In a joint statement, the culture ministry and the STB admitted working directly with concert organisers, but declined to confirm either the amount of the grant or the existence of an exclusivity deal.
“It is likely to generate significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel and dining, as has happened in other cities in which Taylor Swift has performed,” they said at the time.
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Primavera Sound Porto 2024 generates €43.4m
Portugal’s Primavera Sound Porto generated €43.4 million in economic impact this year – around €5m less than in 2023, according to a new study.
Held at Parque da Cidade from 6-8 June, the 40,000-cap event hosted around 50 concerts, including acts such as Lana Del Rey, SZA, Pulp, The National, Arca, PJ Harvey, Mitski, The Legendary Tigerman, Justice, Mannequin Pussy and Billy Woods.
It also featured a tribute to the late producer and Shellac frontman Steve Albini, who was an annual fixture at Primavera Sound Porto, with a listening session dedicated to the band’s recently released album To All Trains.
The festival’s 11th edition attracted in excess of 100,000 visitors across three days, although The Portugal News reports that attendance was hit by rain and the cancellation of some concerts. In comparison, it brought in €48.5m last year and €36.1m on 2022.
The report by ISAG-European Business School and the Center for Research in Business Sciences and Tourism of the Consuelo Vieira da Costa Foundation shows that attendees spent an average of €126.85 at the festival site. Three-day festival tickets cost €195.
A total of 14.1% of all festivalgoers came from outside Portugal, of which 18.7% were from Spain, followed by England (14%), Brazil (12.3%), France (7.6%), Germany (4.7%) and Italy (4.7%).
“Among international visitors and residents outside [the local area], 91.8% went to Porto to attend the festival”
“Among international visitors and residents outside the AMP [Porto Metropolitan Area] – who represented 37.2% of the sample – 91.8% went to Porto to attend the festival,” notes the study.
Residents from outside the AMP recorded an average daily expenditure of €397.87 in the city, with accommodation the most significant expense at €117.74 per day.
“Once again we have a poster that I think is mostly female,” festival director, José Barreiro told The Portugal News ahead of this year’s festival. “When we started this [trying to achieve gender parity] in 2017 it was risky to do so. The future proved us right because at this moment it is much easier. The biggest sales champions in the industry are currently women.”
Next year’s Primavera Sound Porto has been confirmed for 12-14 June 2025.
Primavera Sound’s flagship Barcelona edition drew an overall attendance of 268,000 in 2024, including 130,000 unique visitors – 15,000 more than last year.
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NI fests Emerge and Belsonic boost economy by £30m
The 2023 editions of Belsonic Festival and Emerge Music Festival generated additional economic activity amounting to £30.8 million (€36m) and created almost 6,000 paid employment opportunities according to an independent report.
Belsonic, in the city’s Ormeau Park, and Emerge, held in Boucher Fields, attracted more than 200,000 paid attendees between them, with ticket holders travelling from as far away as Australia, USA & mainland Europe – further boosting the events’ impact on Northern Ireland’s tourism sector.
Economist Chris Carey conducted the study alongside live entertainment consultant Tim Chambers. They found that Belsonic, which was established in 2008 and has since become Northern Ireland’s largest live music event, generated £20.4m of additional economic activity last year, thanks in no small part to a lineup that included Lizzo, Tom Jones, Lionel Richie, George Ezra, David Guetta & Florence & The Machine.
Emerge, which launched in 2022, has quickly established itself as Ireland’s premier electronic music festival. Its 2023 two-day edition featured over 50 acts across four stages, including headliners Carl Cox, Bicep, Camelphat, and Charlotte deWitte.
“Events such as Belsonic and Emerge are considerable economic drivers providing a much needed boost for our local tourism and hospitality industry”
“These economic impact figures are startling, and clearly indicative of the broader & hugely positive economic benefit to Belfast and beyond,” says festival director Alan Simms. “Hospitality businesses, private transport, public services and many other key areas of the local economy benefit on show nights, and the local tourism industry and hotel occupancy always see a strong boost, not to mention the thousands of staff and local suppliers employed at these and our other events.
“We are delighted to see our events contribute to the local economy in such a substantial fashion both with the large summer events and the many other concerts and event we produce throughout the rest of the year.”
Welcoming the research of Carey and Chambers, Northern Ireland Economy Minister Conor Murphy comments, “Events such as Belsonic and Emerge are considerable economic drivers providing a much needed boost for our local tourism and hospitality industry. Employing thousands of people each year, they also engender a feel good factor and a sense of pride that shouldn’t be underestimated.”
Promising further contribution to Belfast’s coffers, Belsonic returns to Ormeau Park in June, where headliners will be Take That, Sting, Shania Twain, Becky Hill & Limp Bizkit. Emerge, meanwhile, is promising a substantial expansion for its 2024 event, which is scheduled for 24-25 August.
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Economic impact revealed for The Town debut
The debut edition of Brazil’s The Town festival generated R$1.9 billion (€356.9 million) in economic impact for the host city of São Paulo, exceeding expectations, organisers have reported.
The brainchild of Rock in Rio founder Roberto Medina, the 105,000-cap festival launched at the Interlagos race track over five days from 2-10 September, headlined by Post Malone, Foo Fighters, Maroon 5 and two nights with Bruno Mars
The event broke records by selling 350,000 tickets in less than three hours and went on to welcome more than 500,000 fans in all.
According to calculations carried out by Brazilian higher education institution and think tank Fundação Getulio Vargas (FGV), which looked at the direct and indirect effects of the festival, the economic impact bettered the previously released estimate of R$1.7bn.
“The estimated numbers for The Town were already huge and now, with confirmation from FGV, we see that we have delivered even more,” says Roberto Medina, president of Rock World, the company responsible for The Town and Rock in Rio. “Moving the city’s economy in this way is fundamental. More money coming in also means more investment in each sector. This contributes to the transformation of realities. With each edition we see an increase in these numbers and if it was like this in the first edition, imagine the next ones.”
“A large number of people from outside the city of São Paulo came to watch the shows”
To calculate The Town’s economic impact, FGV worked with a methodology that includes an analysis of the direct expenses of the event’s organisation and the festival’s audience, in addition to the brands. The expenses came to around R$213m, while 23,400 jobs were created by the event.
FGV Projetos executive manager Luiz Gustavo Medeiros Barbosa says The Town has proven itself to be a “mega event”.
“It has an economic impact of around 1.9 billion reals,” he says. “This value is very considerable and the factors that lead to ensuring an impact of this magnitude are: the large expenses related to holding the event. In other words, it is an event that, due to its characteristics, its structure and its form of organisation, has a high amount of expenses for its organisation and operation.”
The festival partnered with transportation company the CCR Group, which guaranteed that the trains that provide access to the Interlagos Circuit would run 24 hours a day on festival days.
“A large number of people from outside the city of São Paulo came to watch the shows,” adds Barbosa. “With this, the economy circulates, new money enters the city, coming from other states, from other cities, which means we have a large volume. Unlike people who already live in São Paulo, these mega-events bring fans who stay in hotels, rented houses, need to go to restaurants, getting around by taxi, Uber, or public transport, increasing the economic impact.
“Finally, the city of São Paulo is able to absorb a large part of the expenses for holding the event, that is, making the economic multiplier even greater. These are the fundamental points and why these major events bring such a significant economic movement and impact on the cities’ economy.”
Last year’s 100,000-cap Rock in Rio generated 2 billion reals in economic impact for its host city after welcoming 700,000 fans across seven days.
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New tool to track economic impact of festivals
A South African public research body has an unveiled online tool to measure the economic impact of music festivals.
The South African Festival Economic Impact Calculator (SAFEIC), developed by the Department of Arts and Culture’s South African Cultural Observatory (SACO), analyses three elements of economic impact: total spending on accommodation; total amount spent by festival promoters in the host economy; and actual economic impact, including the multiplier effect on the host economy.
The tool – the brainchild of American academic Bruce Seaman, of Georgia State University, and Rhodes University lecturer Jen Snowball, also SACO’s chief research strategist – is based on a similar calculator developed in the US.
“Until now, the only way to estimate the economic impact of an event was to run an expensive visitor survey and employ a researcher to analyse the data and calculate the impact,” explains Prof Snowball.
“Until now, the only way to estimate the economic impact of an event was to run an expensive visitor survey and employ a researcher to analyse the data”
“Not all events have the budget to do that, so the SAFEIC offers a reliable way of estimating economic impact at no cost to the organisation.
“While it won’t provide the same level of detail as a survey and impact study done for that specific event, it will provide a realistic estimate of what the economic impact is. An added bonus is that the results can be used in feedback to communities and sponsors.”
According to SACO CEO Richard Haines, SAFEIC will unlock “both an understanding of the impact of events and reporting that supports decision-making”.
“We are very proud of this SACO product, which we are offering free to industry practitioners and researchers,” he comments. “It’s been a great collaboration of minds and we are excited by its potential impact on the industry.”
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