How Indonesia sustains creative economy to unleash tourism potential

The “Swiftonomics" effect

Indonesia wants to replicate the success of "Swiftonomics" in neighboring Singapore with major investments to boost tourism , but tourism industry experts are still weighing whether this is the right strategy for the archipelago nation, according to SCMP.

Tourists in Bali, Indonesia. Economist Gancar Premananto said Indonesia should combine the advantages of natural tourism with the way it markets and promotes international events domestically. Photo: EPA-EFE

Indonesia is planning to roll out incentives to host more major music , sports and cultural events to attract international tourists to spend more money and stay longer in the country.

American pop star Taylor Swift will perform at Singapore's National Stadium from March 2-9. The event could generate hundreds of millions in tourism revenue for the country as more than 300,000 fans are expected to attend.

“Hosting big stars like Taylor Swift sounds impressive and prestigious, but in the end, that’s not what sustains an industry that needs a steady stream of events, especially for a country the size of Indonesia,” Teguh Wicaksono, a music entrepreneur and co-founder of Indonesian digital contemporary music archive project “Sounds From The Corner,” told This Week in Asia.

"Swiftonomics" is a term first mentioned in July 2023 when the US Federal Reserve (FED) released its Beige Book. Taylor Swift's concerts are said to be not only musical events, but also act as a driving force for tourism development and local economic growth.

Indonesian Tourism Minister Sandiaga Uno also affirmed on February 18 that we need what Singapore and Australia have done, which is to bring back Taylor Swift. We need Swiftonomics in Indonesia.

To this end, the Indonesian Ministry of Tourism recently established the Indonesia Tourism Fund, with an initial fund of 2 trillion rupiah ($128 million). The fund will help the country bid for “music, sports and cultural events that are considered to have the potential to create a multiplier effect for Indonesia’s tourism industry.”

With the big music event coming up, Singapore has agreed to pay Taylor Swift between $2 million and $3 million per show to perform exclusively in the city. Taylor Swift will perform six sold-out shows at the 55,000-seat Singapore National Stadium. Singapore's total sponsorship for the six-day concert is between $12 million and $18 million.

Mr Gancar Premananto, an economist at Airlangga University, said the exclusive contract created a scarcity effect that forced fans across Southeast Asia to travel to Singapore to see their idols perform live, bringing maximum economic benefits to Singapore in the process.

“Given this trend, the desire to recreate Swiftonomics in Indonesia’s tourism industry is understandable, although it will not be without its challenges. Indonesia has inimitable advantages in terms of natural beauty and diverse tourism options. Therefore, this strength needs to be combined with marketing and promoting international music or cultural activities within its borders to maximize economic impact as well as tourism development,” said Mr. Premananto.

Mr. Teguh also affirmed that Indonesia has become famous in the global music scene for hosting world-class performers.

“Around the time Taylor Swift’s concerts in Singapore begin, the Joyland festival taking place in Nusa Dua (Bali) will feature British singer James Blake as the headline act. In addition to Blake, the festival will also feature international stars such as Kings of Convenience, Todd Terje, Gilles Peterson, Shintaro Sakamoto, The Walters, Whitney, Vansire and Pearl & Oysters,” said Mr Teguh.

Attracting national talent

Earlier, on November 15, British pop-rock band Coldplay performed to 80,000 spectators at the GBK Stadium in Jakarta. The highly anticipated show had its own successes. However, a major ticket fraud scandal has somewhat affected the organizer's reputation.

Jakarta police said 2,500 fans bought fake Coldplay tickets at discounted prices from a couple identified as Ricardo and Angel, who were later arrested for fraud.

Some distracted fans attempted to storm the concert venue after realising their tickets were invalid, witnesses said some managed to get in.

Surabaya-based event organizer Gary Lee said there was no doubt that Indonesia had a strong market for big concerts, but logistics were a major obstacle to attracting artists who were famously exclusive here.

Given the current problem, Mr. Teguh believes that Indonesia should use tourism funds to create a better working environment for emerging artists and musicians, instead of pursuing lofty projects for prestige reasons.

“I have seen emerging artists finding their way abroad to perform without any support or facilities from our government,” said Mr Teguh.

Mr. Teguh affirmed that if Indonesia wants a strong creative economy, nurturing domestic talent will be the best and most sustainable way.

“Our emerging artists will keep the country’s scene alive for much longer, bringing more sustainable economic benefits across sectors,” Teguh added./.

Source: https://toquoc.vn/cach-indonesia-huong-den-duy-tri-nen-kinh-te-sang-tao-trong-tiem-nang-du-lich-20240229115340981.htm