StockTalk(7.13): Taylor Swift's The Eras Tour sparks frenzy of travel demand: How do global superstars rock the local economies?

Moomoo SG OP : Join us and share your thoughts on today's topic Please leave a comment below to share your opinion with us. Your feedback is valuable, and we appreciate your participation.

DavidCCL : • Boosts the revenue of Tourism and Hospitality industries: Concerts draw huge influx fans from various parts of the world, leading to an increase in tourism. Overseas fans may stay in local hotels, eat at restaurants, and spend money on transportation, shopping, and other tourist activities.

• Revenue from Ticket Sales: The sale of concert tickets generates substantial revenue for the concert organizers, venue owners, and related service providers.

• Job Creation: Concerts of this magnitude require a large workforce to manage various aspects, such as event organization, ticketing, security, catering, logistics, and more. Temporary staff are also needed.

• Merchandise Sales: Typically there will have a wide array of merchandise and party accessories available for purchase which will generate revenue for the vendors and merchandise sellers.

• Ancillary Spending: Fans attending the concert often spend money on related items or experiences. This includes dining at local restaurants, exploring nearby attractions, shopping for souvenirs, and other discretionary spending which will provide a boost to local businesses.

• Media Exposure: High-profile concerts will likely attract significant media attention, both locally and internationally. This exposure can enhance Singapore's reputation as a vibrant entertainment destination, potentially attracting more tourists and boosting the overall image of the country.

All these economical benefits can be seen  before, during and after the concert takes place.

ZnWC : Have you paid attention to these superstars?
Yes I do especially those superstars that I follow closely. Superstars coming to your town will bring excitement to their fans.

How can investors capitalize on the economic impact of global superstars?
From the economy points of view, their coming implies Singapore is a international travel hub and a society that embrace different languages cultures. It is a vote of confidence that the city's infrastructure and security can hold large scale performance. A vibrant economy will bring in investment which will be reflected in stock market.

Are there opportunities to invest in hotels, airlines, or other travel-related businesses that stand to benefit from this celebrity effect?
Definitely. I share 2 articles about this. First it will increase demand in air service because the superstar will attract fans to fly to Singapore. Singapore airlines and its subsidiary budget Scoot will benefit most due to their strong presence in Singapore Changi Airport. Second hotel and other travel-related businesses (restaurant, nightclub, shopping mall, Theme Park etc) will also benefit as the surge in tourists will increase demand.

Will the superstar rally be sustainable?
It depends on competitions from neighbouring city such as Sydney, Bali, KL, Hong Kong, Bangkok etc. Perhaps STB (Singapore Tourism Board) can do more to attract other large scale entertainment to Singapore.

ZnWC : Related articles that I shared recently:

Singapore airfares for March 2024 spike ahead of ticket sales for Taylor Swift concerts

World-class venues, positioning as regional events capital behind Singapore's concert hub status

Kopikarp : On this topic, one ticker that I have been following, with mild amusement, is $FaZe Holdings (FAZE.US)$. Despite the fanfare and numerous high profile celebrity endorsements at its inception, this entertainment company has never been profitable and has always used outside investment to fund its operations. Such examples remind us to always examine a company's fundamentals and scrutinize its reporting transparency regardless of the hype.

倚天屠龙 : I’ve always been interested in the intersection of technology, business, and culture, and global superstars are a fascinating example of how these forces can come together.

Investors can capitalize on the economic impact of global superstars by investing in businesses whose revenues are directly boosted by the demand for travel and tourism generated by these stars, like hotels, airlines, or travel agencies that cater to fans of these artists.

There are numerous opportunities to invest in hotels, airlines, or other travel-related businesses that stand to benefit from the celebrity effect. These businesses are likely to see an increase in demand when a global superstar comes to town, and investors who are able to get in early could stand to make a significant profit.
Here are some specific examples of how investors have capitalized on the economic impact of global superstars:

In 2019, when Taylor Swift announced her Reputation Stadium Tour, the demand for hotels in cities where she was performing increased by an average of 20%. This led to a surge in the stock prices of hotel companies such as Marriott International and Hilton Worldwide

In 2017, when Beyoncé and Jay-Z announced their On the Run Tour, the demand for flights to cities where they were performing increased by an average of 15%. This led to a surge in the stock prices of airlines such as Delta Air Lines and American Airlines

In 2016, when Coldplay announced their A Head Full of Dreams Tour, the demand for merchandise associated with the band increased by an average of 50%. This led to a surge in the stock prices of companies that sell Coldplay merchandise, such as Live Nation Entertainment and Bravado.

These are just a few examples of how investors can capitalize on the economic impact of global superstars. By investing in businesses that are directly or indirectly affected by the demand for travel, tourism, and merchandise generated by these stars, investors can potentially earn significant profits

No_Horse_Run_4896 : Singapore is gaining more solid percentage on SEA region for hosting concerts. Without a doubt it will definitely be of the strong SGD that contribute to it. My excitement goes towards the record breaking 歌神张学友

Danielycious : Why contribute to the superstar’s wealth?

江南公子 No_Horse_Run_4896 : 张学友 is staying a whole month in Singapore for performing. I am wondering, any chance to bump on the streets or wet markets hahahaha

The Cow King : I'm only interested in "YOASOBI"
Erm... sry if I'm not being serious
Cheers all~