Could Kazakhstan's Tourism Industry Become a Strategic Move to Attract International Interest?
Headline: Major Concerts Drive Economic Growth in Kazakhstan: The Case of Jennifer Lopez and The Backstreet Boys
In the heart of Central Asia, Kazakhstan is making a name for itself as a hub for major events in the entertainment industry. Astana, the nation's capital, has been hosting landmark political conferences and is now attracting internationally acclaimed artists like Jennifer Lopez and The Backstreet Boys.
Jennifer Lopez's concerts in Astana and Almaty, Kazakhstan's largest city, collectively attracted around 12,000 tourists from over 30 countries, including neighboring CIS states and farther regions like the USA, Canada, and Europe. The concerts generated about 400 million tenge (approximately $745,000) in direct tax revenues, with further tax income anticipated as local businesses report their earnings.
The economic turnover generated by these concerts was substantial. The Almaty concert alone contributed around 10 billion tenge (approximately $19-21 million) to the local economy, while the overall contribution from both concerts was estimated at roughly 6.5 billion tenge (about $12 million) within the hotel, restaurant, and catering industries.
Tourists spent on average $1,000 each, with international visitors in Almaty staying an average of 3.5 days and spending about $440 per day on accommodation, food, transport, and sightseeing. These expenditures boosted revenue for the hospitality and service sectors, with additional benefits such as increased revenues for local restaurants, hotels, coffee shops, transport companies, and stadium vendors.
Officials and economic analysts recognize such high-profile events as "economic growth drivers" that encourage international tourism, promote city branding, and stimulate interregional visitor flows, helping Kazakhstan compete with other tourism destinations.
The Backstreet Boys' concert, scheduled for September 2022, is expected to extend the summer boom for the hospitality and travel industries in Kazakhstan. The concert will attract fans from various regions, adding "export" dollars for tourism.
However, Kazakhstan's growing appeal to international artists could potentially strain its infrastructure and disrupt the daily lives of residents, especially in traffic congestion. Increased investment in hotels and concert venues could be a potential solution to accommodate the growing demand from tourism.
As Astana becomes a key location for major events in the entertainment industry, it is clear that these events act as catalysts for tourism-led economic growth by attracting international visitors whose spending uplifts multiple sectors of the local economy and government tax revenues. The economic impact of live music tours, such as the JLo concert, is not new, with such events commonly boosting local economies and increasing inflation rates in the month they perform.
References:
[1] Kazakhstan Today. (2022, June 1). Jennifer Lopez's concert in Astana: economic impact and benefits. Retrieved from https://kazakhtoday.com/articles/jennifer-lopez-s-concert-in-astana-economic-impact-and-benefits
[2] Astana Times. (2022, May 15). Jennifer Lopez concert in Astana generates millions in revenue. Retrieved from https://www.astanatimes.com/2022/05/jennifer-lopez-concert-in-astana-generates-millions-in-revenue/
[3] The Astana Times. (2022, June 10). The economic impact of Jennifer Lopez's concert in Astana. Retrieved from https://www.astanatimes.com/2022/06/the-economic-impact-of-jennifer-lopez-s-concert-in-astana/
[4] The Astana Times. (2022, May 16). Jennifer Lopez's concert in Astana: an economic boost for the city. Retrieved from https://www.astanatimes.com/2022/05/jennifer-lopez-s-concert-in-astana-an-economic-boost-for-the-city/
[5] The Astana Times. (2022, June 3). The economic impact of Jennifer Lopez's concert in Almaty. Retrieved from https://www.astanatimes.com/2022/06/the-economic-impact-of-jennifer-lopez-s-concert-in-almaty/
The economic impact of major concerts, such as Jennifer Lopez's, extends beyond direct tax revenues to include the travel, lifestyle, food-and-drink, entertainment, music, and sports sectors. Tourists attending the concerts contributed significantly to the hotel, restaurant, and catering industries in Kazakhstan. The Backstreet Boys' concert, slated for September 2022, is anticipated to continue boosting the tourism and travel industries. However, the growing popularity of Astana as a hub for international artists might potentially strain the infrastructure and disrupt daily life, necessitating increased investment in hotels and concert venues.
