Sports and Music Tourism to Hit $1.5 Trillion by 2032, Driven by Major Events

New research from Collinson International Ltd. predicts sports and music tourism will reach $1.5 trillion by 2032. The study highlights the increasing popularity of events like Taylor Swift concerts and Formula One races as key drivers of this growth.

New Research Predicts Sports and Music Tourism to Skyrocket to $1.5 Trillion by 2032

Many people have noticed the surge in photos from Taylor Swift concerts or Formula One races among their friends, highlighting the growth in sports and music tourism. In a report by Bloomberg, according to new research from Collinson International Ltd., this sector is not just growing but is expected to skyrocket, reaching a $1.5 trillion industry by 2032.

Collinson, which owns Priority Pass and LoungeKey airport lounges worldwide, attributes most of this figure to sports tourism, which is anticipated to increase from $564.7 billion in 2023 to $1.33 trillion over the next eight years. Music tourism, meanwhile, is projected to generate an additional $13.8 billion, more than doubling its current value of $6.6 billion.

For its report, released on July 29, Collinson identified travelers as individuals who traveled to events, both domestically and internationally. The survey included 8,537 travelers from 17 countries, with 83% having traveled to a sporting event and 71% having attended a concert in the past three years or planning to do so within the following year.

Despite history-making events like Swift's "Eras Tour" and the first Summer Olympics with in-person spectators in eight years taking place in Paris, Collinson used these findings to simulate the industry's potential growth.

“People are placing high value on experiences over objects,” says Christopher Ross, president of Collinson International EMEA. “The experience of attending a sports or music event starts with the planning and travel, not just when you walk into the stadium.” This shift in consumer behavior towards experiential spending is a crucial insight for the industry.

Formula One and Soccer Lead Sports Tourism Boom, Driving Economic Impact of Major Events

Approximately 83% of individuals traveling for events attend the Olympics, soccer matches, basketball contests, F1 races, or tennis tournaments, with soccer attracting 69% of the sports enthusiasts surveyed. Formula One has seen significant growth among younger generations since Netflix's "Drive to Survive"premiered in 2019, with in-person attendance at race weekends increasing from 195,000 in 2019 to over 270,000 in 2023. British driver Lewis Hamilton has publicly criticized the rising cost of race tickets in the UK, which now reach £600 ($765) for prime "grandstand" seats.

These ticket prices are just one part of the sports tourism economy, including hotel stays, restaurant meals, taxi journeys, merchandise, and other expenses. According to Collinson data, 77% of travelers arrive one or two days before an event, and 80% stay for one to three days afterward. Sports tourists are the most expensive category of visitors, with 51% spending more than $500 per person on flights.

The November 2023 F1 Grand Prix race in Las Vegas had an economic impact of $1.5 billion, 50% greater than the Super Bowl three months later. This Staggering figure underscores the significant economic potential of major sports events.

Airbnb Bookings Surge 133% Amid Rising Event Tourism, Driven by Concerts and Major Sports Events

Airbnb bookings have increased by 133% from last year despite the Paris Summer Olympics not being as successful as anticipated for international tourism. International travelers are expected to spend approximately $5,000 on hotel accommodations, airfare, and event tickets. Collinson notes that sports enthusiasts are willing to spend money in terminals, with over half of sports fans paying $500 or more in the airport alone. The highest spenders are 25-34, with a third spending more than $1,000 while waiting for their flights.

Collinson identifies significant events like Coachella, Rock in Rio, and Taylor Swift's "Eras Tour" as major tourism generators in the music industry. Swift's tour has notably contributed to a 45% year-over-year increase in airfare sales to destinations such as Milan and Munich during concert dates, and booking surges for Paris' top-tier hotels surpass those of the Olympics.

The hospitality sector now faces the challenge of capitalizing on this trend. Marriott International, for instance, used the Eras Tour to recruit new members for its Bonvoy loyalty program by offering complimentary tickets through lotteries. Auberge Resorts Collection, which operates 27 five-star resorts, is collaborating with Mercedes-Benz to establish a new concert series featuring artists like Kate Hudson, Maren Morris, and LeAnn Rimes, starting in October. Tennessee's iconic Blackberry Farm Resort, which boasts its concert hall, has an upcoming lineup that includes Kacey Musgraves, Emmylou and Friends, and Noah Kahan, with general access tickets typically starting at $1,000 per person.