Despite the frenzied publicity, Sydney Harbour fireworks outshone Taylor Swift

Despite the frenzied publicity surrounding the Taylor Swift Eras Tour last February, Sydney Harbour’s fireworks had more impact on hotel room rates and occupancy, a new report shows.

US singer Taylor Swift performs in Sydney, where she helped drive hotel room nights up by $36.4m according to CBRE.

Despite the frenzied publicity surrounding the Taylor Swift Eras Tour in February, Sydney Harbour’s NYE fireworks had more impact on hotel room rates and occupancy, according to a new report on sporting, cultural and business events.

An extra 22,700 room nights were sold during Taylor Swift’s four-night concert run in Sydney, equating to a $36.4m jump in hotel room revenues compared with two weeks either side of the February event.

But the Sydney Harbour NYE fireworks spurred even more revenue for hoteliers. Over the three impact days – New Year’s Eve and the two days surrounding it – the fireworks contributed an extra 30,100 room nights, generating a $51m increase in extra room revenue, compared with a fortnight either side of the event.

December 31, 2023 was the highest single day for the year, with the average room rate $776 per night.

Peach PRC pictured on stage at the Rainbow Republic World Pride event. World Pride Week 2023 helped increase room nights. Picture: Damian Shaw

A diversified calendar of citywide events plays a crucial role in driving hotel demand in Australia’s hotel markets, the new CBRE research reveals. From Vivid Sydney to World Pride Week, the report analysed 15 major events.

The second most significant event was the Australian Grand Prix in Melbourne, which achieved an increase in room revenue of $50m for the state’s hoteliers. Brisbane’s most lucrative event was the 2024 NRL Magic Round, which generated $14m in extra room revenue and 15,200 extra room nights.

CBRE head of hotels research Ally Gibson said the analysis revealed the importance of having a mix of high-profile, local and off-season events to ensure steady demand for the hotel sector and positive flow-on effects for the local economy. “Our analysis revealed high-profile events have a more substantial effect on both rate growth and occupancy demand. However, many of these events have fewer impact days and may generate less room revenue compared to those held over longer durations,” she said.

Ms Gibson noted that in many cases, the greatest positive effect for a city was experienced during low and shoulder season visitation periods.

“Events like NRL Magic Round and State of Origin in Brisbane, held during winter, and the Australian Grand Prix in Melbourne, held in the late March shoulder season, provided a boost during quieter periods.”

CBRE regional director, hotels valuation & advisory Troy Craig said Sydney’s status as a cultural, business and tourism centre made it a prime destination for major events year-round.

“In 2025 we’ll see a vibrant and diverse mix of iconic international and local events, including major music acts like Billie Eilish, Oasis and Katy Perry, alongside high-profile sporting tournaments including the Lions Tour 2025. The city’s cultural landscape also continues to evolve with newer events like Art Month Sydney and SXSW,” Mr Craig said. “In Melbourne, beyond traditional high-profile events such as the Australian Open, Melbourne Cup and Australian Grand Prix, the city is attracting a growing number of global conferences, like the World Chambers Congress and new music and art celebrations such as Rising festival, which fuel rising demand for accommodation.

“Brisbane has been actively enhancing its reputation as a premier event city, positioning itself as a key player in Australia’s tourism and hospitality sectors. With the 2032 Brisbane Olympics on the horizon, the city has seen substantial investment in infrastructure and venue upgrades, making it an increasingly sophisticated destination.”

Originally published as Despite the frenzied publicity, Sydney Harbour fireworks outshone Taylor Swift