A growing number of Chinese localities are rolling out targeted policies designed to transform large-scale concerts and cultural events into fresh economic engines, as these events have emerged as catalysts that generate ripple effects across hospitality, dining, transportation and retail sectors, analysts said.

The recently released outline of the 15th Five-Year Plan (2026-30) has identified the expansion of culture, sports and tourism consumption as a key priority, calling for optimized approval processes for commercial performances and sporting events — a signal that China's multibillion yuan concert economy is entering a new phase of quality-driven growth.

Fans from other cities traveling for a show might spend on flights, hotels, meals, souvenirs and even extend their trips to explore local attractions, said Jiang Zhao, associate researcher at the Chinese Academy of International Trade and Economic Cooperation.

"What begins as a single transaction becomes a cascade of economic activity," Jiang said.

According to a report released in January by the China Association of Performing Arts, large-scale performances generate an average multiplier effect of 1:6.85 for other forms of consumption.

This multiplier effect means that for every 1 yuan ($0.14) spent on a concert ticket, nearly 7 yuan of additional consumption is generated in surrounding spending scenarios.

In 2025 alone, major commercial events with audiences exceeding 5,000 people drove more than 220 billion yuan in ancillary spending — including on transportation, accommodation, dining, tourism and retail — beyond direct ticket revenue, as noted by the report.

In Nanning, Guangxi Zhuang autonomous region, when pop superstar Jay Chou took the stage for three nights there last April, he did more than entertain tens of thousands of fans.

The concerts attracted 141,800 ticketed attendees and about 28,000 fans who gathered outside the concert venue to revel in the atmosphere. Notably, 85 percent of attendees traveled from outside Nanning, said Nanning Weining Group, a State-owned enterprise that manages the city's cultural and tourism assets.

The three concerts generated 1.26 billion yuan in citywide consumer spending. The figure offered a vivid illustration of how major cultural events produce ripple effects across hotels, restaurants, retail and transportation — far outstripping ticket sales alone.

China's live performance market reached 96.9 billion yuan in 2025 and is projected to surpass 100 billion yuan this year, said consultancy iiMedia Research.

Generation Z has emerged as the driving force behind China's surging concert economy, with nearly 60 percent of young consumers willing to pay for emotional value — a trend that is reshaping consumption patterns, said Tian Lihui, dean of the institute of financial development at Nankai University.

Cities are increasingly structuring their policies to capture these spillovers. Zhejiang province, for example, has introduced tiered rewards this year for large-scale performances based on cumulative ticket sales, revenue scale, and — crucially — the percentage of attendees traveling from outside the province.

Events that choose Zhejiang as their sole China stop, or launch their national tours in the province, may qualify for even higher support tiers.

Guangdong province has taken steps beyond the event itself. Under new measures, the province encourages the integration of performance tickets with broader tourism experiences. A single ticket could now offer discounted or free entry to scenic areas, museums and cultural sites, while also unlocking savings at hotels, restaurants and retail outlets.

China's concert economy is rapidly emerging as a prime investment destination, with strong momentum in physical consumption drawing sustained capital deployment into the sector. Listed companies are accelerating their entry, providing powerful momentum for a comprehensive upgrade of the performing arts industry chain, according to industry data.

A report released in January by the Research Center for Culture and Creativity Finance at Tsinghua University's PBC School of Finance showed that financing activity in the cultural sector accelerated significantly in the first half of 2025. The number of financing deals increased 63.2 percent year-on-year, while total financing volume surged 88.9 percent.

wangkeju@chinadaily.com.cn