For decades, the intersection of wealth management and luxury experiences has revolved around sports. Special tickets, private boxes, and VIP access were the hallmarks of a luxury-driven approach aimed at those who could afford such pleasures.
But a significant shift is underway, one that’s reshaping not just individual travel plans but entire economies.
Today, a broader range of individuals are investing in experiences that were once the domain of the ultra-wealthy. And this isn’t just a fleeting trend; it’s a fundamental shift in how people view travel and what they seek from it.
Take Singapore, for instance. The city-state reportedly paid an astounding USD 3 million to host Taylor Swift’s Eras Tour, ensuring exclusivity in Southeast Asia. Economists estimate this move will generate USD 300-400 million in tourism revenue, boosting GDP by up to 2 percentage points.
Today, I’d like to share some insights into how sports and music tourism are reshaping how we think about travel.
Overview of sports and music tourism – A convergence of passion and wanderlust
At its core, the rise of sports and music tourism represents a shift in how people view travel. Modern travellers, particularly millennials and Gen Z, are no longer content with passive sightseeing. They seek immersive, emotion-driven experiences that offer something more than just a change of scenery.
This trend is evident in the growing global sports tourism market, valued at USD 564.7 billion in 2023 (a whopping 10% of global tourism spending) and projected to reach a staggering USD 1.33 trillion by 2032 – a CAGR of 17.5%.
Similarly, music tourism is expected to grow from USD 6.6 billion in 2022 to USD 13.8 billion by 2032.
But where is this growth coming from?
The power of sports and music lies in their ability to transcend borders, age, and gender, fostering a sense of unity among travelling fans. Whether it’s the thrill of a major sporting event or an experience at a concert, these moments create lifelong memories.
This phenomenon is driven by three key factors: events, exposure, and experience.
Now, let’s dive into each of the 2 segments to understand how they are barrelling forward.
Sports tourism – More than just games
Global market
The sports tourism sector is growing at an impressive rate, with the adventure tourism market expected to reach USD 1.3 trillion by 2032. Mega-events like the Olympics, FIFA World Cup, and Formula One races have long been pillars of this sector.
These events attract fans who are among the top spenders in the tourism industry. Over half (51%) of sports tourists spend more than USD 500 per trip, with 29% spending over USD 1000, especially for international trips. Interestingly, 17% of respondents in Asia spend more than USD 2000, with the 25-34 age group leading the way.
But sports tourism is no longer limited to these mega-events. We’re seeing a diversification of offerings that cater to a broader range of interests and budgets. For example, adventure sports tourism is drawing travellers who seek both a physical challenge and cultural immersion. Whether it’s trail running in the Alps or surfing in Bali, these niche experiences are redefining what it means to be a sports tourist.
Factors that impact sports tourism
Sports tourism in India
According to Future Market Insights, India’s sports tourism market, currently valued at USD 10.87 billion, is projected to grow at a CAGR of 17.1% and reach USD 52.97 billion by 2033.
What was a niche concept in India about a decade ago has rapidly expanded over the past five years, with many agents and operators offering specialised packages around major sporting events. This trend is expected to boost India’s sports tourism market significantly.
The growth is driven mainly by the rise in franchise-based sports and increased government efforts to improve infrastructure. Recognising the potential, major tour operators have established dedicated divisions for sports tourism.
One of the key players leading the charge in this space is DreamSetGo, India’s first premium sports travel and experiences platform. The company is capitalising on the growing demand for tailored sports travel experiences by offering exclusive packages that cater to the needs of affluent travellers.
From curated travel packages to major global sporting events to VIP hospitality services at iconic venues, DreamSetGo is setting new standards in sports tourism. Their partnerships with international sports entities and leagues further solidify their position as a leader in this sector.
Music tourism – The sound of success
Global market
Music tourism is projected to grow from USD 6.6 billion presently to USD 13.8 billion by 2032, driven by major concerts and festivals.
If sports tourism is about the thrill of competition, music tourism is about the joy of shared cultural experiences. The phenomenon of travelling for music isn’t new – think of the hippie trails to music festivals in the ’60s and ’70s. What’s changed is the scale and economic impact of these events.
Taylor Swift’s ongoing “Eras Tour” serves as a prime example. According to a survey by QuestionPro, the tour is estimated to generate USD 5 billion in consumer spending across the United States – more than the GDP of 50 countries!
And if that’s not impressive enough, Barclays estimates that her UK tour will inject GBP 1 billion (around USD 1.3 billion) into the UK economy as well.
This includes ticket sales, travel, accommodations, and local spending by concertgoers. The tour’s impact is so significant that it’s been credited with boosting local economies and even influencing national GDP figures.
Factors that impact music tourism
Music tourism in India
In India, music tourism is taking on a unique flavour, blending traditional and contemporary sounds. Festivals like Sunburn in Goa and NH7 Weekender, which travel to multiple cities, are not just music events—they’re cultural phenomena that draw attendees from across the country and beyond.
While the exact market size of the music tourism industry in India remains unavailable, certain numbers indicate a promising future for the segment.
According to the report – The Music Creator Economy – The Rise of Music Publishing in India 2023, by consulting firm EY, India’s music concert industry is set to generate INR 1,000 crore in revenue by 2025, highlighting significant concert size growth.
In 2018, there were 200 concerts with audiences exceeding 5,000 people, a number expected to reach 300 by 2025.
Concerts with 2,000-5,000 attendees are also on the rise, projected to nearly double from 800 in 2018 to 1,400 in 2025. The most substantial growth is anticipated in smaller concerts with audiences under 2,000, which are set to more than double from 7,000 to 15,000.
BookMyShow, a leading entertainment ticketing platform, has been instrumental in this growth. By collaborating with global music festivals and bringing international artists to India, BookMyShow has played a vital role in expanding the market for live music experiences. Their involvement in organising large-scale events, such as the U2 concert in Mumbai and the Ed Sheeran tour, highlights the growing significance of music tourism in India.
The increasing number of festivals like Sunburn and NH7 Weekender indicates a rising demand for high-quality music events. Additionally, technological advancements, such as virtual reality concerts and live streaming, are expected to create new possibilities in this space.
What this boom means for investors
From an industry perspective, understanding this shift and the motivations behind it is crucial. Fans are not just travellers; they are loyal customers seeking experiences that resonate deeply with their passions. For businesses in the travel and tourism sector, this presents a unique chance to tap into a market that’s not only growing but also willing to invest significantly in quality experiences. As sports and music tourism continue to rise, those who can offer tailored, memorable, and premium experiences will lead the way in this new wave of travel.
For investors, the key is to identify companies that are not only capitalising on the current demand but are also well-positioned to lead the market as it grows. Companies like DreamSetGo and BookMyShow are at the forefront of this transformation, offering a glimpse into India’s future of sports and music tourism.
Foraying into these sectors requires a keen understanding of consumer trends, a willingness to support innovative startups, and a long-term vision that aligns with the ongoing evolution of experiential travel. As the market for premium, tailored experiences continues to expand, and the sports and music tourism space looks well poised to grow substantially in the future.
In summary –
The projected explosion in sports and music tourism isn’t just about numbers; it’s about a fundamental shift in how people choose to experience the world. As these industries continue to grow, they’re redefining travel by offering more immersive, emotional, and culturally rich experiences. People are driven to spend more on creating unforgettable memories. This trend signals a golden opportunity for the travel industry to innovate and cater to this evolving demand.
Commenting on the explosive growth expected in the sports and music tourism segments, Christopher Evans, CEO of Collinson International, said, “The growing and global fanbase that will travel to iconic sports and music events is looking for unforgettable experiences and are prepared to spend significantly to make their trip extra special. Fans are, by definition, synonymous with loyalty.
This new research shows the high value they place on travel benefits. Great news for the travel industry and for those businesses targeting frequent travellers, providing the opportunity to capitalise on the rise of event tourism by offering the travel benefits fans crave. In return, they will see the advantage of being top-of-mind and wallet with these frequent travellers, boosting engagement, building loyalty, and driving additional cross-border spend.”
Disclaimer: The information contained in this document is for informational purposes only.