California's governor Gavin Newsom recently banned gatherings of more than 20 people statewide, in efforts to curb the spread of Covid-19. This has led to 2 marquee festivals, Coachella and Stagecoach, being cancelled. Coachella was supposed to host a star-studded lineup, including Frank Ocean, Travis Scott, Megan Thee Stallion, and Lana Del Rey. While the festival is offering some form of refund, many ticketholders have realised that they might not be able to get their money back for other costs, such as plane tickets and Airbnbs.
In 2019, these 2 music festivals brought in close to $1 Billion in revenue, with Coachella bringing in an estimated $704 Million alone- from businesses and consumer spending. The economic impact will be felt all around the region, with SMEs selling bicycles, to eateries, all depending on these 2 music festivals as their largest source of revenue throughout the year. This trend could continue if the pandemic worsens, with huge festivals such as Tomorrowland considering postponement or even cancellation.
On the home front, bands Green Day and A-ha have also cancelled their concerts in Singapore, and nightclub Marquee has shut its doors for the foreseeable future- I wouldn't be surprised if we see other clubs like Zouk and F-Club follow suit.
It seems that these measures may not have been enough...
All in all, the previous projections by analysts that revenue in the Event Tickets segment would amount to about US$139m in 2020 will definitely not come to fruition. This is especially since the market's largest segment being Music Events, which will see a huge dip in revenue due to the anticipated cancellations. Let's just hope that the economic impacts will be far lesser than expected.
California's governor Gavin Newsom recently banned gatherings of more than 20 people statewide, in efforts to curb the spread of Covid-19. This has led to 2 marquee festivals, Coachella and Stagecoach, being cancelled. Coachella was supposed to host a star-studded lineup, including Frank Ocean, Travis Scott, Megan Thee Stallion, and Lana Del Rey. While the festival is offering some form of refund, many ticketholders have realised that they might not be able to get their money back for other costs, such as plane tickets and Airbnbs.
In 2019, these 2 music festivals brought in close to $1 Billion in revenue, with Coachella bringing in an estimated $704 Million alone- from businesses and consumer spending. The economic impact will be felt all around the region, with SMEs selling bicycles, to eateries, all depending on these 2 music festivals as their largest source of revenue throughout the year. This trend could continue if the pandemic worsens, with huge festivals such as Tomorrowland considering postponement or even cancellation.
On the home front, bands Green Day and A-ha have also cancelled their concerts in Singapore, and nightclub Marquee has shut its doors for the foreseeable future- I wouldn't be surprised if we see other clubs like Zouk and F-Club follow suit.
It seems that these measures may not have been enough...
All in all, the previous projections by analysts that revenue in the Event Tickets segment would amount to about US$139m in 2020 will definitely not come to fruition. This is especially since the market's largest segment being Music Events, which will see a huge dip in revenue due to the anticipated cancellations. Let's just hope that the economic impacts will be far lesser than expected.