Three Government-Supported Music Initiatives Generating Near $100 Million In Tourism Dollars

State and local governments are learning how investing in major music events generates major returns. Estimates of three upcoming events – Paul McCartney in Newcastle, Coldplay in Perth and Harvest Rock in Adelaide – are that they’ll collectively make close to $100 million in tourism dollars.

McCartney’s six-date Got Back run sees him visit Newcastle for the first time on October 24. It’s the result of a major events partnership struck last year between the City of Newcastle and Venues NSW, the state government’s stadium operating agency, to attract a variety of events to the city. He could bring between $14 million and $9 million to the local economy, based on the first two tours under the partnership, Elton John and Pink.

Two Elton shows, staged with Frontier Touring, “injected more than $14 million into the local economy”, confirmed Newcastle Lord Mayor Nuatali Nelmes. On his first visit to Newcastle in January, John drew almost 50,000 to the 30,000-seat McDonald Jones Stadium – which returned to staging concerts after 30 years – with more than 75 percent of people coming from outside of Newcastle. During this time, Newcastle's accommodation occupancy rates almost doubled, compared to the same period the year before.

“Pink's concert [in association with Live Nation, scheduled for February 2024] is forecast to deliver another $9 million economic windfall for the city, with similar outcomes expected during Paul McCartney's visit,” forecast Nelmes. "These events also play an essential role in boosting tourism, as well as encouraging repeat visitation in the future."

Major events are a key part of Newcastle's Destination Management Plan as a primary driver of the local tourism economy, which was worth $1.27 billion pre-COVID.

Two From Coldplay

Coldplay’s two Tourism WA-backed shows, on November 18 and 19 at Optus Stadium, are estimated to inject $68 million into Western Australia. The venue has 60,000 seats but can cater for 70,000 at concerts when the stage is set up in the centre of the pitch. Online ticket presales set a new record when 300,000 queued up.

According a study by Tourism Council WA, 40,000 attendees will be from outside the state – Sydney and Melbourne are top of the list – and will stay an average of four nights each.

The WA government took a gamble when it approached Coldplay to take a break from the Asian leg of their Music Of The Spheres world tour to play the (initially) one Australian show. The announcement of the dates was accompanied by a marketing campaign in Asia, New Zealand and the rest of Australia, which included hotel packages. The strategy paid off, with Tourism Council WA CEO Evan Hall revealing that Coldplay’s 40,000 out-of-towners exceeded the number of visitors to WA from Japan, Indonesia, India, and Germany pre-COVID.

“I would encourage airlines to make more affordable seats available for the rapid influx of interstate travellers attending the concerts,” he said. “The State Government attracting major entertainment acts is fantastic for the tourism industry, and will create jobs in Perth and regional WA.” The Coldplay shows create 495 full-time equivalent jobs for Western Australians.

Just how much the Government paid for Chris Martin and co. to wing their way here remains a closely guarded secret. But the economic outcome must suggest more exclusives are on their way, especially as a survey showed 69 percent of respondents agreed with State Government investment in major events, with 21 percent neutral and 11 percent disagreeing. The last state budget added an extra $10 million towards holding major events.

Time For Harvest

The South Australian Government is expecting another multi-million dollar event with Harvest Rock, the two-day music and food it stages in Adelaide with Falls Festival and Splendour In The Grass promoter Secret Sounds.

According to Minister for Tourism Zoe Bettison, last year’s inaugural event was an “incredible success” with almost 24,000 attending, “generating $16.5 million in total economic activity for Adelaide and almost one-third of festival goers attending from interstate and overseas.”

This year’s music bill – running over Saturday October 28 and Sunday 29 – is stronger, with exclusive headliner sets from Jamiroquai and Beck, and Chet Faker’s first homeground set since 2019. Others include Nile Rodgers & Chic, Flight Facilities’ Decades DJ set, Paul Kelly, Baker Boy, Santigold, Bad//Dreems, Thelma Plum, Vera Blue, Julia Jacklin, The Rolling Stone Revue, Sparks Chromeo and Ladyhawke.

TheMusic.com.au previously reported that the Northern Territory Government’s BASSINTHEGRASS festival in Darwin generated $14.5 million for the NT economy, with half of the 16,000 attendees coming from outside the Territory. Meanwhile, the deal between Visit Victoria and Frontier for Billy Joel to play a one-off at the Melbourne Cricket Ground drew 76,300 punters. Of these, 42 percent were from interstate, with hotel occupancy peaking at 93.7 percent on the night, and estimates that the state benefitted by $30 million.