Taylor Swift will play a total of six shows at the National Stadium between 2-9 March 2024, with over 300,000 tickets sold in total after being brought to Singapore by a team of government officials working with concert promoter Anschtuz Entertainment Group.
According to economists’ estimates, Swift’s six sold-out shows are expected to generate up to $500 million in tourism receipts.
These benefits include additional tourist arrivals and greater spending on everything from tickets and flights to hotel nights, extending to the entertainment, retail and dining sectors in Singapore.
Anecdotal evidence also indicates that demand for flights and accommodation in hotels and airlines around the dates of Swift’s concerts has increased by up to 30%.
Here we look at sectors and stocks that will benefit substantially from the Taylor Swift effect.
1) Airline
Singapore Airlines (SGX: C6L), the Singapore national carrier, is the obvious beneficiary as concert-goers from the region would have to fly in.
Anecdotal evidence from as far back as July 2023 indicated that airline tickets were 50% to 130% more expensive during the period of the shows compared to similar flights in February 2024.
In July 2023, it was observed that a one-way ticket on Jetstar Asia from Jakarta to Singapore in early March 2024 costs $193, but a similar ticket booked for a month earlier only costs $73.
A Singapore Airlines (SIA) flight from Manila to Singapore from February 29th to March 8th cost $390 on average, more than double the price of a similar ticket booked for a month earlier.
Obviously, any flight booked later than July 2023 would cost even more!
2) Hotels
Far East Hospitality Trust (FEHT) (SGX: Q5T) and OUE Commercial Trust (OUECT) (SGX: TS0U) are among the few noteworthy beneficiaries.
FEHT has a portfolio of 12 properties comprising 9 hotels and 3 serviced residences, totalling 2,775 hotel rooms and 240 serviced residence units respectively. The entire portfolio is based in Singapore!
OUECT has two hotels, comprising the 1,080-room Hilton Singapore Orchard and the 575-room Crowne Plaza Changi Airport, both of which are in prime tourist catchments locations. In addition, OUECT has one retail property, Mandarin Gallery, a high-end retail mall situated within the first four levels of Hilton Singapore Orchard.
Though not a Singapore stock, Marina Bay Sands is also a big winner. Big spenders have taken up Marina Bay Sands’ luxury packages named after Swift’s hit songs, such as “Shake it Off” and “Stay Stay Stay”. The hotel’s $50,000 “Wildest Dreams” package includes VIP tickets, fine dining, a hotel suite, limousine transfers and passes to tourist attractions. The hotel said that all its packages were sold out.
On an overall basis, due to the limited rooms in Singapore, even considering that March is a slower season for leisure travel, market observers are expecting a RevPar increase during the week hitting more than 50% compared to the March 2023 average.
3) Shopping malls
Malls that are closer to hotels and nearer to the venues would be the forefront beneficiaries. Suntec REIT (SGX:T82U) owns Suntec City, which we think is the largest and nearest shopping mall to the venue.
CapitaLand Integrated Commercial Trust (SGX: C38U) which arose from a merger of CapitaLand Commercial Trust and CapitaLand Mall Trust, owns many major shopping malls including Raffles City and Bugis Junction, which are also close to the venue and hotels.
Jewel, located at the Changi airport, is also an attraction for its world’s tallest indoor waterfall and the Rain Vortex show. Changi Airport is the airport hub where most air travelers have to go through, except for VVIPs such as Taylor Swift herself, who flew on a private jet and arrived at Seletar Airport!
4) Food & beverage
The entire F&B industry is expected to benefit as stomachs have to be fed.
RE&S Holdings (SGX: 1G1) owns brands such as Kuriya and Ichiban, among many others as shown in the snapshot below.
Old Chang Kee (SGX:5ML) specialises in curry puffs and other local snacks and has outlets all over Singapore.
Japan Foods Holding (SGX: 5OI) owns countless brands and restaurants across the island. Some of the more well-known brands include Ajisen Ramen, Extra Virgin Pizza, Menya Musashi, Nakiryu and Osaka Osho.
5) Entertainment and Attractions
Genting Singapore (SGX: G13) owns Resorts World Sentosa (RWS), one of two integrated resorts in Singapore. RWS includes six hotels, a casino, Universal Studios Singapore, celebrity chef restaurants, and even a theatre. RWS’s six hotels offer approximately 1840 rooms for accommodation, each designed with a different theme catering to a range of visitors.
6) Transportation
Inevitably, with more footfall in the country, Comfort DelGro (CDG) (SGX:C52), SBS Transit (SBS) (SGX:S61) and Grab (NASDAQ:GRAB) will benefit, albeit not substantially, but every bit counts!
CDG and Grab owns and operate taxis while SBS runs a portion of the train system. As March tends to be a quiet month for tourism and events, the Taylor Swift boost would allow for a higher utilisation rate and goes directly to the bottom line of these companies.
Power to Swifties
Clearly, the immediate effect of the concerts being held in Singapore will accord significant benefits to the Singapore economy, especially to tourism activities such as hospitality, retail, travel, and dining, as the same has been observed in other cities where Taylor Swift has performed.
A longer-term effect may also occur. Should the concerts be held to the highest of standards and the overall tourism experience shine, more performers and event organisers would look towards hosting performances in Singapore.
It will be a win-win situation for the Singapore government, businesses and the performers as perhaps they know that they can negotiate with the Singapore government to make it worth their while…