How Sports and Music Tourism is Shaping a $1.5 Trillion Market

Out of 8,573 travellers from 17 different countries, 83% had gone to a sports event and 71% had boarded a plane for a music concert in the last three years or planned to do so in the upcoming year.

New research indicating that sports and music tourism is expected to increase at previously unheard-of rates and reach $1.5 trillion in revenue by 2032, has been released by Collinson International Ltd., the company that operates Priority Pass and LoungeKey airport lounges worldwide.

Of that amount, sports tourism accounts for the vast majority. Estimated to be worth $564.7 billion in 2023, it is anticipated to soar to $1.33 trillion during the following eight years. Meanwhile, the industry of music tourism is expected to generate an extra $13.8 billion, more than double its present $6.6 billion valuation.

In its assessment, which was released on July 29, Collinson characterized travellers as anyone who took a plane to an event, whether it was domestically or abroad. Out of 8,573 travellers from 17 different countries, 83% had gone to a sporting event and 71% had boarded a plane for a concert in the last three years or planned to do so in the upcoming year.

Collinson utilized those findings to create a model that shows how the industry has grown and could develop further, assuming linear growth despite historic events like Swift’s “Eras Tour” and the current Summer Olympics in Paris, which are the first to allow in-person fans in eight years.

Christopher Ross, president of Collinson International EMEA, states that experiences are becoming more and more valuable than material possessions.

The five most popular athletic events, in descending order, are soccer matches, basketball games, the Olympics, Formula One races, and tennis tournaments, which account for about 83% of event travellers. Since streaming networks have made fandom more approachable, “the ability to become a global fan has become much more of a reality,” according to Ross.

9% of sports fans in the study who indicated they had either recently attended a live match or planned to do so in the upcoming year, were fans of soccer. This encompasses individuals who were among the over a million spectators in Qatar for the FIFA World Cup 2022 but excluded those who intend to attend the 2026 World Cup.

Conversely, after Netflix Inc. debuted its Drive to Survive docuseries in 2019, Formula One has become increasingly popular among younger generations; in fact, a complete thirty per cent of F1 fans credited the show for piquing their interest in the sport. The average race weekend in 2023 drew almost 270,000 fans in person, a rise from 195,000 in 2019.

Not only are more individuals becoming interested in the sport, but ticket costs are also rising. This summer, general admission race tickets in the UK can cost over £400 per person, up from approximately £300 just two years ago. British driver Lewis Hamilton has openly criticized the escalating costs of racing tickets, which have reached £600 ($765) for excellent “grandstand” seats.

As Ross points out, the sports tourism industry encompasses more than simply ticket sales; other costs include lodging, dining out, transportation, souvenirs, and other fees.

According to Collinson’s research, approximately 80% of visitors will remain for one to three days following a concert or competition, while 77% arrive one or two days beforehand. Travellers who attend sporting events spend the most money, with 51% of trips costing more than $500 per person for airfare and other costs – not counting event tickets.

Consider Las Vegas, the site of the November 2023 Formula One Grand Prix. Three months later, the Super Bowl will raise 50% less money than the event’s $1.5 billion economic benefit for the city.

F1 fans are among the most prone to tack on extra costs to their sporting events, according to Ross, who characterizes them as a younger generation. Ross continues, “It seems counterintuitive – you would think they have less disposable income.”

That doesn’t lessen the impact of other things that happen. Although not as much of an international tourism juggernaut as anticipated, the Paris Summer Olympics are nonetheless drawing enough visitors to drive a 133% increase in Airbnb bookings over the same period last year. It has been anticipated that foreign visitors will spend approximately $5,000 on lodging, flights, and event tickets.

Furthermore, Collinson notes that airport spending by sports fans is noteworthy for the corporation. According to its data, more than half of sports fans spend $500 or more in the airport alone. The highest-spending age group is 25-34, with a third of them spending more than $1,000 while they wait for their plane to take off.