Revenue from top-tier events like Taylor Swift concerts goes back into 'highly impactful social events': Edwin Tong
Social return is just as important as economic return in bringing in top acts to Singapore, noted Minister for Culture, Community and Youth Edwin Tong.
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SINGAPORE: Revenue from top-tier marquee events that the government works with is ploughed back into “non-revenue generating, highly impactful social events”, said Minister for Culture, Community and Youth Edwin Tong in parliament on Monday (Mar 4).
Such top-tier events include performances by the likes of Coldplay, Ed Sheeran and Jacky Cheung, as well as American megastar Taylor Swift who is currently playing a six-night show in Singapore, the only Southeast Asian stop on her Eras Tour.
Kallang Alive Sport Management (KASM), which took charge of operating the Sports Hub after the government takeover, is not just trying to strike deals “only for economic return”, said Mr Tong.
“To us, it is equally important that we have social return,” he reassured members in answering questions about the exclusive deal brokered to make Singapore the sole regional stop for Swift.
Last Friday, Mr Tong told CNA that the amount involved was “nowhere as high” as reports have suggested.
CNA understands the figure is closer to US$2 million to US$3 million in total for all six concerts – not US$3 million for each, as Thai Prime Minister Srettha Thavisin had been previously quoted as saying.
Elaborating on the social return from high-revenue generating concerts like Coldplay and Taylor Swift, Mr Tong noted that KASM retains some tickets for certain concerts to give to beneficiaries from lower-income or at-risk families.
It works with SportCares, SG Cares Volunteer Centre, SouthEast CDC and other organisations. Volunteers from these organisations also get these tickets.
ECONOMIC BENEFITS ASSESSED TO OUTWEIGH GRANT SIZE
MPs on Monday also noted tension from regional neighbours as a result of Singapore’s exclusive deal with Swift’s team.
For instance, the deal recently prompted a lawmaker in the Philippines to express disappointment, reportedly saying “this isn’t what good neighbours do”.
Nominated MP Usha Chandradas posed a supplementary question on whether there were confidentiality clauses built into the contract with Swift’s team. She also asked if these clauses were about exclusivity arrangements, and whether the terms were breached.
“Yes, there is a confidentiality agreement, and we will assess the terms and we will take the appropriate measures under advisement,” replied Mr Tong.
He reiterated that the Singapore Tourism Board (STB) undertook its own assessment of the potential benefits of bringing the concert to Singapore before subsequently offering a grant to the concert promoter.
“STB assesses whether to give grants on a case-by-case basis, judiciously weighing up the benefits which might accrue to Singapore if the event were brought in,” he said.
Minister for Culture, Community and Youth Edwin Tong said the Government saw the Taylor Swift concert as an opportunity to make it a uniquely Singapore experience. In Parliament on Monday (Mar 4), he however added that grants alone will not decide where a performer goes. Promoters of top artistes will do their own calculation and assess where they want to perform and for how long. Mr Tong said one major consideration is the location. There are many reasons why world-class artistes choose to host large-scale concerts in Singapore. These include Singapore’s strategic location and diverse cultural offerings. He said Singapore will need to continue investing in infrastructure and software to continue attracting entertainment, lifestyle and sporting events into Singapore. On the grant, Mr Tong said that due to business confidentiality, the size of the grant cannot be revealed. He gave the assurance that the economic benefits have been assessed to be significant and outweigh the size of the grant. Mr Tong was replying to MP’s questions.
While he was unable to reveal the exact size or conditions of the grant, Mr Tong assured the House that the economic benefits to Singapore are assessed to be “significant and outweigh the size of the grant”.
Direct economic benefits include additional tourist arrivals and additional spending on tickets, flights, hotel stays, and extend to the entertainment, retail and dining sectors in Singapore.
He also pointed out that other cities which have hosted Taylor Swift concerts have similarly reported an increase in economic activity, “and we would expect the same in Singapore”.
In a response to MP Gerald Giam’s (WP-Aljunied) supplementary question on the negotiations involved, Mr Tong added that the government has to work out what was in the best interests of Singapore and Singaporeans.
“It is not in every case that we decide that we need to make a grant or we need to negotiate in a particular way. And every event that's lifestyle, sporting, arts, culture, music has a different consideration,” he said.
“Whether we shape it in one way, give a grant in another way or organise our framework to host the event in a particular way, all that is shaped by the outcomes we want to achieve.”
In the case of Swift’s concerts, Mr Tong noted that the government was “mindful” to look at the situation “holistically” when deciding that Singapore should be one of the stops. They also looked at Swift’s tour history, for instance, and concluded it would be “very difficult” to have her perform for “one or two nights alone because of the setup”.
“We had to look at that as quite a material consideration for discussing with the Taylor Swift team on how long and for what duration to host her in Singapore. And we also have to judge what’s the demand that we have in the local market,” he said.
