Big benefits from cultural events

The economic potential of cultural events has been proven by incredible numbers. Large cultural events - especially performances by international stars - have become huge economic opportunities.

Culture drives economy

The concept of "Swiftonomics" (a combination of Economic and Taylor Swift's last name) was born from the "huge" economic benefits created by singer Taylor Swift through her performances in Australia (7 shows) and Singapore (6 shows). Information said that the organizer had to pay a subsidy of 2-3 million USD for a show, so that Taylor Swift could perform exclusively in Singapore. Although the cost of organizing was very high, the economies of the places she visited also grew remarkably. The two Australian states of Victoria and New South Wales earned huge amounts of money in just a few short days.

The Taylor Swift deal has brought in a huge amount of revenue for the Australian and Singaporean economies (Photo: REUTERS)

Thailand also had to spend nearly 500 million baht (about 340 billion VND) for a show to get the female singer's nod. However, that was a reasonable expense compared to the economic efficiency that Thailand would gain.

"The Swift effect is undeniable, with her concerts generating between $150 million and $200 million for a state's economy," said Michael Johnson, chief executive of the Australian Immigration Service, speaking to The Daily Telegraph. Tax lawyer Harry Dell revealed that Swift would have to pay 30% tax to the Australian Taxation Office on her concert income. That means the Australian government would collect around $10 million in tax from the Anti-Hero singer through her performances.

Both Australia and Singapore’s economies are booming on multiple fronts: hotel rooms are full, restaurants and bars are packed, and fans are splashing out on merchandise. When Taylor Swift performed, a tent in Singapore was rented for $200 a night; hotel rooms were sold out.

Business in Vietnam

Although Vietnam has not achieved outstanding results, the Vietnamese economy has been boosted to some extent by cultural deals. In 2023, many events were successfully organized: shows by Charlie Puth, Maroon 5 - at the annual music festival; 8Wonder, Blackpink - with 2 shows in Hanoi. Data shows that the Korean music group helped Hanoi achieve about 630 billion VND in revenue from tourists.

In fact, Vietnam still does not have a systematic investment strategy for cultural deals. Creating trust for international stars to come to Vietnam still faces many barriers. Among them, the most difficult is still the ability of the organizing unit, from finance to organizational skills. Most international stars when coming to Vietnam put forth a series of terms that the organizing unit must guarantee.

The most important thing is to prove the ability of the organizer. Ronan Keating once made a request that was 50 pages long and extremely detailed. The organizer must prove its ability to perform, and must commit to meeting all the requirements of international stars. For example, star Bi/Rain even requested that the venue have its own toilet so as not to be disturbed.

Insiders believe that in order to become a regular destination, meeting the demands of international stars with shows for tens of thousands of people, there needs to be synchronization from human resources to the stage, technology, sound and light, safety assurance... specialized in the entertainment industry.

Ariana Grande once made Vietnamese fans "furious" when she canceled her show just a few hours before the show. Ariana Grande's world tour still went on as scheduled, except for Vietnam. It was only later that fans learned that Ariana Grande canceled her show in Vietnam because the stage and security did not meet the required quality.

According to experts, it is time for relevant authorities to soon come up with feasible plans to roll out the red carpet to welcome superstars, thereby helping to develop the country's economy.

Economists estimate Singapore's tourism revenue will increase by up to $500 million after six shows, the Straits Times reported. The estimated economic benefits to Singapore from Taylor Swift are estimated to far exceed the scale of the funding the Singapore Tourism Board (STB) provided to bring the singer to the island nation.

Source: https://nld.com.vn/loi-lon-tu-su-kien-van-hoa-196240314204641089.htm