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5 Singapore Stocks That Will Benefit From Its Concert Boom
June 30, 2023
Singapore is carving out a name for itself as a pivotal stop on major world music tours, standing out in the Southeast Asia region.
High-profile concerts such as Coldplay’s “Music of the Spheres” and Taylor Swift’s “The Eras” are testament to this.
These high-demand events not only entertain local fans but also attract a significant international audience.
Digital travel platform, Agoda, reported an 8.7-fold increase in Singapore accommodation searches just three days after Coldplay tickets were released.
This surge primarily originated from Malaysia and Indonesia, but concertgoers from Hong Kong, Thailand, Vietnam, India, the Philippines, and Australia are also expected to arrive in the city state.
This concert frenzy is positively impacting Singapore’s Meetings, Incentives, Conferences and Exhibitions (MICE) sector and giving a much-needed boost to the local economy in a post-Covid world.
With that in mind, here are five SGX-listed stocks that will benefit from Singapore’s concert boom.
1. CapitaLand Ascott
One of the first beneficiaries that comes to mind is hotels and the owners of those hotels.
The Singapore’s thriving concert scene will, therefore, benefit hospitality REITs like CapitaLand Ascott Trust (SGX: HMN).
This is as the surge in tourist arrivals will boost hotel occupancy during concert days.
CapitaLand Ascott Trust has a diversified portfolio of serviced residences, business hotels and long-stay accommodation that provides a balance between growth and stable income.
With the rise in tourist arrivals in Singapore, this will boost its short-term accommodations in the near term.
2. Far East Hospitality Trust
Another REIT that could benefit from the surge in tourists’ arrivals in Singapore for the concerts is Far East Hospitality Trust (SGX: Q5T).
Far East Hospitality Trust is a pure-play Singapore REIT that has 12 properties, comprising nine hotels and three serviced residences.
With tourist arrival numbers in Singapore set to continue to recover, this will benefit Far East Hospitality Trust.
It also offers an attractive dividend yield of around 6.7%.
Singapore Telecommunications Ltd (SGX: Z74), also known as Singtel, is another stock that could benefit from the concert frenzy in Singapore.
Concert attendees frequently rely on mobile data for real-time social media updates and live streaming.
This will result in a windfall for Singtel, with a substantial increase in data usage and package upgrades.
Singapore’s largest taxi operator, ComfortDelGro Corporation Limited (SGX: C52) is also in a good position to benefit from this concert boom in Singapore.
The influx of international concert-goers will lead to an uptick in demand for taxi rides.
This is as concert-goers need rides to and from venues.
ComfortDelGro’s taxi services, in particular, will be the recipients of a surge in late-night bookings.
5. Genting Singapore
Among the beneficiaries of this concert fever is Genting Singapore Limited (SGX: G13), the operator of the integrated resort; Resorts World Sentosa.
As concertgoers throng the city, many seek world-class accommodation and entertainment experiences that the likes of Genting Singapore’s resort provides.
This influx of guests boosts revenue from their hotels, restaurants, and other leisure facilities.
Singapore’s rise as a global concert hub benefits local economy
Singapore’s rise as a global concert hub brings far-reaching economic benefits, extending to the stock market.
The post-Covid era has further amplified Singapore’s appeal. As the world slowly recovers from the pandemic, the push for in-person events is stronger than ever.
Singapore’s effective handling of the pandemic, coupled with strict safety measures, has provided both artists and concert-goers with the confidence to participate in live music events again.
Aside from that, Singapore’s strategic location, governmental support, robust MICE sector, and a diverse, receptive audience are collectively driving its emergence as a dominant force in the global concert scene.
As the city-state continues to host an array of international music events, it enhances its cultural appeal and financial prospects—music to the ears of both concert-goers and investors alike.
Disclaimer: ProsperUs Investment Coach Billy Toh doesn’t own shares of any companies mentioned.
Billy is deeply committed to making investment accessible and understandable to everyone, a principle that drives his engagement with the capital markets and his long-term investment strategies. He is currently the Head of Content & Investment Lead for Prosperus and a SGX Academy Trainer. His extensive experience spans roles as an economist at RHB Investment Bank, focusing on the Thailand and Philippines markets, and as a financial journalist at The Edge Malaysia. Additionally, his background includes valuable time spent in an asset management firm. Outside of finance, Billy enjoys meaningful conversations over coffee, keeps fit as a fitness enthusiast, and has a keen interest in technology.