Singapore’s economy grew by 2.7% in the first quarter, partly boosted by the concert tour of pop star Taylor Swift and other artists, as manufacturing slowed down.
This is the fastest pace in 18 months and higher than the forecasted 2.5% in a Reuters poll.
In the first three months of the year, the country’s manufacturing sector contracted by 1.85% compared to the same period last year, mainly due to weaker demand for auto chips and subdued industrial activity. In contrast, services expanded by 3.9%, faster than the 2% pace in the previous quarter, according to data from Singapore’s Ministry of Trade and Industry (MTI).
Gabriel Lim, Permanent Secretary of MTI, noted that the stronger-than-expected recovery in air travel and tourism demand is expected to continue to drive growth in related consumer sectors.
“Payment and insurance activities benefit from higher tourist spending,” he remarked.
Singapore Tourism Board reported that the country welcomed 4.35 million visitors in the first three months, up by about 50% compared to the same period. This sector has been vibrant due to international music events featuring artists like Taylor Swift, Coldplay, and Ed Sheeran.
Singapore served as the exclusive Southeast Asian stop for American pop superstar Taylor Swift in March, during her global concert tour. The Monetary Authority of Singapore (MAS) estimated that over half of the audience at her and Coldplay’s shows were from overseas.
MAS cited expert estimates that tourism revenue from these concerts ranged from $260 to $330 million USD. According to the online travel platform Klook, when tourists come to Singapore for concerts, they spend on other services, with expenditures four to five times the ticket costs.
During Taylor Swift’s performances in the city-state, spending by users on the platform surged by 50%. Over 600,000 people queued online to purchase experience packages for the artist’s shows, including accommodation, sightseeing, and dining.
Recently, after the South Korean girl group Aespa announced they would hold a special concert in Singapore as part of their “SYNK: Parallel Line” tour, the platform continued to seize the opportunity to sell services. Sarah Wan, CEO of Klook Singapore, assessed the island’s advantage in connecting the region well as music tourism becomes increasingly popular.
MAS forecasts that tourism growth will continue to be reinforced by upcoming smaller-scale events, along with the ongoing recovery of Chinese tourists. The Singapore Tourism Board recently raised its forecast for this year to welcome 15-16.5 million international visitors, generating revenue of SGD 27.5-29 billion (equivalent to $20.4-21.5 billion USD).
Meanwhile, MTI anticipates GDP growth in 2024 to be between 1-3%, with expectations of a recovery in electronics exports in the second half of the year. Financial institutions like OCBC and DBS also forecast a growth rate of around 2%.
