usher final
TRANSCRIPT
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ACKNOWLEDGEMENTS
A survey of this magnitude would not have been possible without the
help and assistance of several individuals. The authors would like
to thank the following people and institutions:
1. The Chief Financial Officer, Mr Justin van Wyk, for all his support, for allowing the
research to be conducted and especially for providing the economic information.
2. Ms Desti Loeijs for her kindness and for her help in providing the passes for the
fieldworkers.
3. Big Concerts for financial support.
4. Prof. Melville Saayman for his support and for believing in the research.
5. The following tourism staff and students from the North-West University for the
distribution of the questionnaires at the Orlando Stadium in Soweto:
• Ms B Manners
• Ms M Thanjekwayo
• Ms W Louw
• Ms M le Roux
• Ms N Thompson
• Ms M Fourie
• Mr Q Hanekom
• Mr R du Preez
• Mr S du Preez
• Ms M Groenewald
• Ms L Botha
• Ms M Marais
• Ms H Basson
• Ms A Badenhorst
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6. The concert attendees for their positive attitude and participation in the survey.
7. Rod Taylor for the language editing.
8. Mr M Scholtz for front page design.
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Table of contents
1. INTRODUCTION 1
2. RESEARCH AIMS 1
3. METHOD OF RESEARCH 2
4. PROFILE OF THE USHER CONCERT ATTENDEE 3
SOCIO-DEMOGRAPHIC PROFILE 3
4.1 Gender 3
4.2 Age 3
4.3 Marital status 4
4.4 Home language 4
4.5 Province of residence 5
4.6 Level of education 6
4.7 Occupation 6
ECONOMIC PROFILE 7
4.8 Number of people in travelling group 7
4.9 Number of people paid for 8
4.10 Local resident 9
4.11 Length of stay in the area 9
4.12 Number of tickets purchased 10
4.13 Expenditure 11
CONSUMER BEHAVIOUR 11
4.14 Initiator of attendance 11
4.15 Decision to attend 12
4.16 Heard about the concert 13
4.17 Motivation to attend 15
MUSICAL INTEREST 17
4.18 Number of musical events attended in 201 17
4.19 Preference of artists/bands/performers to perform in South Africa 18
4.20 Attendance at other music festivals 19
4.21 Preferred type of music 19
4.22 All time favourite artist/band/performers 20
21
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KEY MANAGEMENT ASPECTS
4.23 Key management aspects for a memorable visitor experience 21
5. ECONOMIC IMPACT OF THE USHER CONCERT 25
5.1 Total spending of attendees 26
5.2 Economic value based on SAM calculations 27
6. CONCLUSIONS AND RECOMMENDATIONS 33
6.1 Profile of the Usher concert attendee 36
6.2 Conclusions 37
6.3 Recommendations made by respondents 37
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List of Tables
4. PROFILE OF THE USHER CONCERT ATTENDEE 3
SOCIO-DEMOGRAPHIC PROFILE 3
Table 4.1: Age 4
Table 4.2: Marital status 4
Table 4.3: Province of residence 5
Table 4.4: Level of education 6
Table 4.5: Occupation 7
ECONOMIC PROFILE 7
Table 4.6: Number of people in travelling group 7
Table 4.7: Number of people paid for 8
Table 4.8: Length of stay 9
Table 4.9: Number of tickets purchased 10
Table 4.10: Expenditure per group (in ZAR) 11
CONSUMER BEHAVIOUR 11
Table 4.12: Initiator of attendance 12
Table 4.13: Heard about the concert 13
Table 4.14: Motivation to attend the Usher concerts at Cape Town and Johannesburg 15
MUSICAL INTEREST 17
Table 4.15: Number of musical events attended in 2011 17
Table 4.16: Preference of artists/bands/performers to perform in South Africa 18
Table 4.17: Preferred type of music 19
Table 4.18: All time favourite artist/band/performer 21
KEY MANAGEMENT ASPECTS 21
Table 4.19 Key management aspects for a memorable visitor experience 22
5. ECONOMIC IMPACT OF THE USHER CONCERT 25
Table 5.1: Total spending of event attendees 26
Table 5.2: Total direct spending due to the event 27
Table 5.3: Impact through output and GVA multipliers – attendees 28
Table 5.4: Impact on output – event organisers 29
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Table 5.5: Total impact on regional output and gross value added 31
Table 5.6: Total impact on regional income 32
6. CONCLUSIONS AND RECOMMENDATIONS 33
Table 6.1: Profile of the Usher concert attendee 33
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List of Figures
4. PROFILE OF THE USHER CONCERT ATTENDEE
SOCIO-DEMOGRAPHIC PROFILE 3
Figure 4.1: Gender 3
Figure 4.2: Home language 5
Figure 4.3: Local resident 9
Figure 4.4: Decision to attend 13
MUSICAL INTEREST 17
Figure 5.4: Attendance of other music festivals 19
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1. INTRODUCTION Big Concerts is South Africa's premier concert promoter with over eighteen years
experience of more than a thousand shows, including those of Robbie Williams, U2, Neil
Diamond, Roxette, James Blunt and Michael Jackson. They were recently included in
the Pollstar list of the World's Top 100 Promoters at number 20. No other African
promoter features in the Top 100. Big Concerts was also voted the People's Choice as
South Africa's top event company (The Star 2006). In the eighteen years that Big
Concerts has promoted music in South Africa, the company has grown from one to
twenty full-time employees and, today, almost every significant international tour
promoted in South Africa sees Big Concerts involved in some capacity.
Usher Terry Raymond IV, born October 14, 1978, in Dallas, Texas in the USA is an
American R&B singer, songwriter, dancer and actor who rose to fame in the late 1990s
with the release of his second album My Way. Currently, Usher is one of the best selling
music artists of all times, having sold over 65 million albums worldwide and has won
many awards including seven Grammy awards. Apart from this, the RIAA has ranked
Usher as one of the best-selling artists in American history, having sold over 23 million
copies in the United States alone. Usher has attained nine Hot 100 number-one hits
and has attained seventeen Hot top-ten hits. He is particularly known his hits such as
Without, DJ got us fallin’ in love, YEAH, More, U got it bad, Burn, Love in this club,
Confessions part II and You don’t make me wanna. This legendary music icon
performed in South Africa on Saturday, 10 March 2012, at the Orlando Stadium in
Soweto where he kicked off the Hansa Festival of Legends.
2. RESEARCH AIMS This research project had the following primary aims:
• To determine the profile of the visitors attending the Usher Concert at the
Orlando Stadium in Soweto
• To determine the spending patterns of the visitors at the event.
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• To determine what motivates visitors to attend Big Concerts events.
• To determine the key management aspects for a memorable visitor experience
• To estimate the economic impact of the event.
3. METHOD OF RESEARCH To achieve these aims, the following approach was implemented: A questionnaire was
developed by TREES at the North-West University in cooperation with the event
organisers, focusing on the following aspects:
• Demographic data
• Expenditure patterns
• Consumer behaviour
• Travel motivations
• Musical interest
• Critical Success Factors
Visitors were approached before the show and the fieldworkers explained the goal of the
survey as well as the questionnaire. Based on simple random sampling, 414 visitors
formed part of the survey.
The results from the respective surveys will be discussed in the next section.
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4. PROFILE OF THE USHER CONCERT ATTENDEE
SOCIO-DEMOGRAPHIC PROFILE
4.1 Gender
Figure 4.1: Gender
As shown in Figure 4.1, more female respondents participated in the survey at the Usher
concert in Soweto. Sixty seven percent (67%) of the respondents were female while 33%
were male.
4.2 Age
The largest category of respondents who attended the Usher concert at the Orlando
Stadium in Soweto were aged between 25 and 34 years (57%), followed by attendees
4
between 20 and 24 years of age (23%). Respondents in the age group 35-49 years
accounted for 13%, whereas respondents aged 50 years and older accounted for 1% of
the respondents. The average age of respondents at the Usher concert held at Orlando
stadium in Soweto was 28.3 years.
Table 4.1: Age
AGE PERCENTAGE
< 19 6%
20-24 23%
25-34 57%
35-49 13%
50+ 1%
Average age 28.3%
4.3 Marital status
Table 4.2 indicates that the majority of the respondents at the Usher concert were single (45%).
However, a significant percentage of the respondents also indicated that they were either in a
relationship (not married) or married (25% each). Three percent (3%) of the respondents
indicated that they were living together whereas 1% indicated that they were either divorced or
widowed.
Table 4.2: Marital status
MARITAL STATUS PERCENTAGE
Single 45%
In a relationship (not married)
25%
Married 25%
Living Together 3%
Divorced 1%
Widow/er 1%
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4.4 Home Language
The majority of attendees at the Usher concert in Soweto were English speaking (63%) while
32% of the respondents indicated other languages which included Sepedi, Sotho, Siswati,
Tsonga, Tswana, Venda, Xhosa and Zulu (Figure 4.2). Only 5% of the respondents who attended
the concert indicated Afrikaans as their home language.
Figure 4.2: Home Language
4.5 Province of residence
Eighty percent (80%) of respondents at the Usher concert originated from the host province,
Gauteng. Usher attracted respondents from all over South Africa as 7% came from KwaZulu-
Natal, 3% from Mpumalanga, 2% the North-West province, Limpopo and countries outside
South Africa’s borders which included Australia, Botswana, Nigeria, Swaziland, the USA and
Zimbabwe.
Table 4.3: Province of residence
PROVINCE PERCENTAGE
Gauteng 80%
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Western Cape 1%
Eastern Cape 1%
North West 2%
Mpumalanga 3%
Northern Cape 1%
KwaZulu-Natal 7%
Limpopo 2%
Free State 1%
Outside RSA borders 2%
4.6 Level of education
Table 4.4 indicates that the respondents at the Usher concerts were primarily well educated with
either a diploma or a degree (44%) while 19% of the respondents had matric as their highest
level of education and 18% of respondents indicated that they were professionals. Sixteen
percent (16%) of the respondents indicated they had a postgraduate qualification as their
highest level of education, whereas 3% of the respondents indicated that they were still scholars.
Table 4.4: Level of education
LEVEL OF EDUCATION PERCENTAGE
Scholar 3%
Matric 19%
Diploma/Degree 44%
Post-graduate 16%
Professional 14%
4.7 Occupation
The greater part of the respondents who attended the Usher concert in Soweto (46%) indicated
that they are in professional occupations, followed by 17% who were students (Table 4.5). Ten
percent (10%) of the respondents indicated sales as an occupation, whereas nine percent (9%)
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were self-employed and four percent (4%) indicated that they were unemployed. Other
occupations included an au pair, paramedic, production assistant, project manager, volunteer
and a warranty clerk.
Table 4.5: Occupation
OCCUPATION PERCENTAGE
Professional 46%
Self-employed 9%
Technical 5%
Sales 10%
Work at mine 2%
Civil service 1%
Housewife 1%
Pensioner %
Student 17%
Unemployed 4%
Other 5%
ECONOMIC PROFILE
4.8 Number of people in travelling group
Table 4.6: Number of people in travelling group
PEOPLE IN GROUP PERCENTAGE
1 person 3%
2 people 26%
3 people 14%
4 people 22%
5 people 13%
6 people 5%
7 people 3%
8 people 3%
9 people 1%
8
10+ people 10%
Average 4.69
Twenty-six percent (26%) of the respondents at the concert in Soweto travelled in a group of two
people. However, a significant number of respondents indicated that they travelled in a group of
four people (22%), three people (14%) and five people (13%) (Table 4.6). Ten percent (10%)
indicated that they travelled in a group of ten people of more. The average size of the attendees’
travelling group to the concert was five people.
4.9 Number of people paid for
Table 4.7: Number of people paid for
NUMBER OF PEOPLE PAID FOR
PERCENTAGE
None 10%
1 person 21%
2 people 31%
3 people 10%
4 people 12%
5 people 7%
6 people 4%
7 people 2%
8 people 1%
9+ people 2%
Average 2.63 people
According to Table 4.7, the greater part of respondents at the concerts paid for two people
(31%). Paying for only one person accounted for 21% while 12% paid for four people and 10%
paid for three people or were not financially responsible for anyone. The average number of
people for whom respondents were financially responsible at the concert was 2.6 people.
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4.10 Local residents
As shown in Figure 4.3, fifty-eight percent (58%) of respondents who attended the Usher
concert at the Orlando stadium in Soweto were local residents, whereas forty-two percent (42%)
indicated that they were not local residents.
Figure 4.3: Local Residents
4.11 Length of stay in the area
Table 4.8 Length of stay
LENGTH OF STAY PERCENTAGE
None 54%
1 night 13%
2 nights 17%
3 nights 9%
4 nights 3%
10
5 nights -
6 nights 2%
7+ nights 2%
Average nights spent 1.19
As shown in Table 4.8, the majority (54%) of the attendees at the Usher concert indicated that
they did overnight in the area. These respondents were likely to be local residents in the area
where the Usher concert took place. Seventeen percent (17%) indicated that they spent two
nights in the area. However, 13% indicated that they stayed one night in the area, whereas 9%
indicated that they spent three nights in the area. Based on the average length of stay, attendees
to the Usher concert spent an average of one night in the area.
4.12 Number of tickets purchased
Table 4.9 indicates that respondents to the Usher concert purchased two tickets (35%), followed
by one ticket (22%), four tickets (13%) and three tickets (12%). Only 1% of the respondents
indicated that they did not buy a ticket. On average, respondents purchased three tickets to
attend the concert.
Table 4.9: Number of tickets purchased
NUMBER OF TICKETS PURCHASED
PERCENTAGE
None 1%
1 Ticket 22%
2 Tickets 35%
3 Tickets 12%
4 Tickets 13%
5 Tickets 6%
6 Tickets 5%
7 Tickets 2%
8+ Tickets 4%
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Average 2.97
4.13 Expenditure
Attendees at the concert had an average spending of R1 720.32 per group (Table 4.10). The
highest spending category included tickets (R691.10), beverages (R242.68), food (R239.33),
transport (R217.69) and accommodation (R210.82). It is clear that respondents did not spend
much money on Souvenirs and merchandise (R38.77) and parking (R46.35).
Table 4.10: Expenditure per group (in ZAR)
ITEMS AVERAGE SPENT PER ITEM
Tickets 691.10
Accommodation (if applicable) 210.82
Food 239.33
Beverages 242.68
Transport (return) 217.69
Souvenirs and merchandise 38.77
Parking 46.35
Other 33.57
TOTAL 1,720.32
CONSUMER BEHAVIOUR
4.14 Initiator of attendance
Thirty-seven percent (37%) of the respondents at the Usher concert indicated that they initiated
their attendance themselves while others were initiated by friends (33%), family (11%) and
respondents’ spouses and the media (8% each). One percent (1%) of the respondents indicated
that Usher’s website initiated their attendance to the concert.
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Table 4.12: Initiator of attendance
INITIATOR OF ATTENDANCE PERCENTAGE
YES NO
Self 37% 63%
Friends 33% 67%
Media 8% 92%
Spouse 8% 92%
Family 11% 89%
Work 2% 98%
Boyfriend/Girlfriend 5% 95%
Other 1% 99%
4.15 Decision to attend
According to Figure 4.4, the majority (38%) of the respondents to the Usher concert made their
decision to attend a month before, whereas 21% decided to attend when Big Concerts announced
that Usher will perform in South Africa. Nineteen percent of respondents made a spontaneous
decision to attend, whereas 18% made their decision more than a month before. Four percent
(4%) indicated that their decision to attend was made when respondents received a ticket as a
gift, a prize or were invited to attend the concert.
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Figure 4.4: Decision to attend
4.16 Heard about the concert
According to Table 4.13, respondents at the Usher concert indicated on a 4-point Likert scale the
extent to which the different media convinced them to attend the concert.
Table 4.13: Heard about the concert
MEDIA PERCENTAGE
NOT AT
ALL
TO A
LESSER
EXTENT
TO A
GREATER
EXTENT
COMPLETELY
Television 21% 6% 15% 58%
Radio 19% 8% 24% 49%
Big Concerts’
website
35% 17% 18% 30%
Magazines 34% 15% 25% 26%
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Newspapers 37% 14% 26% 23%
Word-of-mouth 14% 9% 28% 49%
Facebook 29% 9% 23% 39%
Twitter 33% 12% 19% 36%
Internet blogs 42% 13% 17% 28%
Computicket’s
website
30% 10% 21% 39%
Other 48% 5% 17% 30%
The following media influenced the respondents to attend the Usher concert to a greater extent
or completely:
• Word-of-mouth (77%)
• Television (73%)
• Radio (73%)
• Facebook (62%)
• Computicket’s website (60%)
• Twitter (55%)
• Magazines (51%)
The following media were indicated to have influenced the respondents’ choice to attend the
Usher concert not at all or to a lesser extent:
• Internet Blogs (55%)
• Other (53%)
• Big Concert’s website (52%)
• Newspapers (51%)
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4.17 Motivation to attend
Table 4.14 indicates the magnitude of the motivational aspects that respondents indicated on a
5-point Likert scale of importance.
Table 4.14: Motivation to attend the Usher concerts at Orlando Stadium in Soweto
MOTIVATION PERCENTAGE
Not at all
important
Slightly
important
Important Very
important
Extremely
important
To see my favourite artist
perform
6% 3% 9% 18% 64%
Because I got tickets free or as a
present
37% 12% 13% 16% 22%
To spend time with family,
friends or someone special
14% 9% 17% 22% 38%
It’s a sociable event 9% 7% 20% 23% 41%
This concert is value for money 10% 8% 21% 21% 40%
I try to attend as many of these
music events as possible
13% 12% 17% 17% 41%
Usher is a well-known
international act
5% 3% 12% 21% 59%
It is a unique, once in a lifetime
experience
6% 7% 14% 19% 54%
I always wanted to see Usher
perform live
6% 5% 15% 22% 52%
To be part of this unique and
exciting event
5% 5% 14% 24% 52%
To have fun and because I enjoy
these types of special events
6% 6% 10% 28% 50%
These concerts are entertainment
at its best
7% 6% 16% 23% 48%
T o enjoy the music 6% 4% 14% 23% 53%
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For nostalgic reasons 8% 6% 17% 22% 47%
For a chance to be with people
who are enjoying themselves
9% 6% 15% 25% 45%
To experience new things 9% 5% 14% 23% 49%
These concerts enable one to
experience the possibility of the
artist singing a song for the first
time or a song that has not yet
been recorded on CD
11% 9% 16% 23% 41%
Because these concerts enable
one to get physically close to the
artists when performing a song
12% 8% 17% 23% 40%
Because I have seen this artist
before and wanted to do so again
24% 10% 19% 15% 32%
Because the attendance makes
one part of the performance
15% 7% 22% 21% 35%
Because of social status in terms
of being seen by others
28% 7% 19% 19% 27%
Because of the possibility of
meeting the artist in person
15% 8% 14% 21% 42%
To relax and escape from daily
tension and my busy everyday
environment
12% 6% 17% 20% 45%
Table 4.14 shows that respondents at the Usher concert considered the following motives to
attend the event as important to extremely important:
• To see my favourite artist perform (82%)
• Usher is a well-known international act (80%)
• To have fun and because I enjoy these types of special events (78%)
• To be part of this unique experience (76%)
• To enjoy the music (76%)
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• I always wanted to see Usher perform live (74%)
The following motive was considered as less important to not important at all:
• Because I got tickets free or as a present (49%)
MUSICAL INTEREST
4.18 Number of musical events attended in 2011
According to Table 4.15, a significant percentage of the attendees at the Usher concert indicated
that they attended one similar event in 2011 (25%) or two similar events (22%). Eighteen
percent (18%) of the respondents who attended the concert indicated that they did not attend
any similar concerts in 2011. The average number of musical events attended in 2011 by
attendees is 2.46 concerts.
Table 4.15: Number of musical events attended in 2011
NUMBER OF MUSICAL
EVENTS ATTENDED
PERCENTAGE
None 18%
1 event 25%
2 events 22%
3 events 16%
4 events 6%
5 events 5%
6 events 1%
7 events 2%
18
8+ events 5%
Average 2.46
4.19 Preference of artists/bands/performers to perform in South Africa
Respondents indicated that they would also like to have the following artists/bands/performers
perform in South Africa (Table 4.16):
Table 4.16: Preferred artists/bands/performers to perform in South Africa
SOWETO
• Adele
• Alicia Keys
• Beyoncè
• Chris Brown
• Drake
• Jay-Z
• Justin Bieber
• Lady Gaga
• Mariah Carey
• Nicki Minaj
• R-Kelly
• Rihanna
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4.20 Attendance of other music events or festivals
The majority of the respondents at the Usher concert (89%) indicated that they do attend other
musical festivals
Figure 4.5: Attendance of other music festivals
4.21 Preferred type of music
As shown in Table 4.17, the majority of the respondents at the Usher concert prefer to listen to
R&B. However, respondents also indicated that they listen to pop, rap, reggae and jazz. It is
notable that the attendees at concerts such as Usher do not prefer music such as heavy metal,
Afrikaans, folk/traditional, country, blues, rock ’n roll and instrumental. Other music
respondents identified that they prefer to listen to afro jazz, afro pop, gospel, hip hop, house,
kwaito and Latino.
Table 4.17: Preferred type of music
TYPE OF MUSIC PERCENTAGE
YES NO
Pop 42% 58%
20
Punk Rock 11% 89%
Classical 13% 87%
Instrumental 16% 84%
Jazz 21% 79%
Blues 14% 86%
Heavy metal 3% 97%
Rap 34% 66%
Rock ’n Roll 15% 85%
R&B 65% 35%
Reggae 21% 79%
Country 8% 92%
Folk/Traditional 7% 93%
Afrikaans 4% 96%
Other, specify 10% 90%
4.22 All time favourite artists/bands/performers
Respondents indicated the following artists/bands/performers were their all time favourite
performers (Table 4.18):
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Table 4.18: All time favourite artists/bands/performers
SOWETO
• Beyoncè
• Chris Brown
• Lil Wayne
• R-Kelly
• Rihanna
• Usher
KEY MANAGEMENT ASPECTS
Respondents to the Usher concert were asked to rate the importance of various management
aspects which they thought would contribute to a memorable visitor experience. The
management aspects where rated on a 5-point Likert scale where 1 indicated not at all
important and 5 extremely important. The importance of these management aspects, referred
to as key management aspects, can help management to improve certain aspects that visitors
regard as important to ensure a more satisfying and memorable experience in the future.
4.23 Key management aspects for a memorable visitor experience
Table 4.19 indicates the importance of the Key Management Aspects respondents regarded as
important:
22
Table 4.19: Key management aspects for a memorable visitor experience
KEY MANAGEMENT ASPECTS
PERCENTAGE
Not at all
important
Slightly
important
Important Very
important
Extremely
important
Adequate, clean and hygienic
ablution facilities inside & outside the
venue
7% 3% 12% 17% 61%
Effective traffic control to and from
the venue
5% 3% 10% 19% 63%
Friendly and professional trained
staff in and around the venue that are
easily noticeable
6% 3% 13% 22% 56%
Appropriate gate opening time prior
to event
6% 3% 13% 23% 55%
Visibility of emergency and security
staff in and around the venue
5% 4% 10% 17% 64%
Communication of the adequate
safety measures/precautions in place
during the concert in case of an
emergency (e.g. evacuation
plan/emergency exits)
6% 4% 10% 19% 61%
Adequate pre-concert performances
or pre-show entertainment
6% 8% 23% 22% 41%
Adequate & effective marketing prior
to the event
6% 5% 14% 29% 46%
Variety of marketing media used, e.g.
magazines, radio and posters
7% 5% 17% 26% 45%
Communication about parking &
transport options prior to the event
7% 3% 14% 23% 53%
User friendly & accessible
information regarding the concerts,
for example websites, radio
advertisements and posters
5% 5% 16% 25% 49%
Correct information given through
marketing (e.g. date, time, venue,
transport options)
6% 5% 12% 19% 58%
Good quality sound and lighting 4% 2% 9% 21% 64%
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Good all-round visibility and stage
layout
3% 4% 9% 18% 66%
Good layout of venue and
comfortable seating
5% 3% 11% 20% 61%
Punctuality of concert starting time 5% 6% 11% 20% 58%
Affordable, variety, good quality and
easily accessible merchandise
8% 6% 14% 23% 49%
Freebies from sponsors 12% 11% 17% 23% 37%
Effective signage and directions to
concert venue
6% 3% 17% 22% 52%
Adequate parking at the concert
venue
6% 4% 12% 22% 56%
Adequate security at parking areas 5% 4% 11% 20% 60%
Adequate information kiosks at
concert venue
5% 6% 15% 28% 46%
Variety of food and beverages (e.g.
Halaal, vegetarian, wines, soft
drinks)
7% 5% 15% 22% 51%
Effective ticket sales prior to the
concert, for example online bookings
5% 3% 13% 24% 55%
Affordable food and beverages at
venue
6% 5% 12% 20% 57%
Accessibility for the disabled 6% 4% 16% 18% 56%
Effective regulated traffic flow after
the concert
7% 4% 8% 18% 63%
Affordable tickets 6% 6% 12% 19% 57%
The opportunity to meet the artist
after the show, e.g. for photos,
autographs
14% 6% 11% 18% 51%
Adequate ATM facilities 14% 6% 12% 18% 50%
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Table 4.19 shows that attendees at the Usher concert considered the following aspects
for a quality visitor experience at these types of events as important to extremely
important:
ASPECTS
• Good quality sound and lighting (85%)
• Good all-round visibility and stage layout (84%)
• Effective traffic control to and from the venue (82%)
• Visibility of emergency and security staff in and around the venue (81%)
• Effective regulated traffic flow after the concert (81%)
• Good layout of venue and comfortable seating (81%)
• Communication of the adequate safety measures/precautions in place during
the concert in case of an emergency (e.g. evacuation (e.g. emergency exits)
(80%)
• Adequate security at parking areas (80%)
• Adequate, clean and hygienic ablution facilities inside & outside the venue
(78%)
• Friendly and professional trained staff in and around the venue that are easily
noticeable (78%)
• Appropriate gate opening time prior to event (78%)
25
5. ECONOMIC IMPACT OF THE USHER CONCERT
The economic value of any event is dependent on a number of factors, of which the
most important are:
• The spending by attendees and organisers.
• The number of attendees.
• The distribution of the money spent through the economy.
The spending of attendees was determined by the survey, while the numbers of
attendees are based on ticket sales figures obtained from the organisers. Since the
events are funded from the ticket sales, no additional spending for organising the
events is added. However, ticket income is appropriated to different spending
categories based on budget allocations obtained from the organiser. To determine
how the money is distributed throughout the economy, a number of methods can be
employed. The current research makes use of the Social Accounting Matrices (SAM)
of Gauteng to determine this multiplying effect of spending.
The multiplier concept is applied using economy-wide consistent data on a particular
(regional/provincial) economy as is normally contained in a Social Accounting
Matrix (SAM). SAMs extend the basic input-output concept from production to
income distribution and include both social and economic data for an economy. A
SAM consists of data from input-output tables, national income statistics, and
household income and expenditure statistics. Contrary to national accounts, “… a
SAM attempts to classify various institutions to their socio-economic backgrounds
instead of their economic or functional activities” (Chowdhury & Kirkpatrick). In the
present case, the authors used a SAM for Gauteng Province, which was developed by
Conningarth Consultants. The SAM (based on 2006 prices) used in these analyses
distinguishes between 37 sectors, 12 household types and four ethnic groups.
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5.1 Total spending of attendees
The average spending by attendee groups was determined based on the survey data
(see Table 4.10) and ticket sales. To determine the spending per person, the group
spending is divided by the average number of persons for whom the respondent is
financially responsible. Multiplying the spending per person by the number of
tickets sold (33 267) gives the total spending associated with the Usher concert held
in Johannesburg. This is shown in Table 5.1.
Table 5.1: Total spending of event attendees (ZAR)
Spending per
person
Total spending
Tickets 691.10 8,741,762
Accommodation 210.82 2,666,675
Food 239.33 3,027,293
Beverages 242.68 3,069,652
Transport 217.69 2,753,633
Souvenirs 38.77 490,452
Parking 46.35 586,268
Other 33.57 424,622
Total 1,720.32 21,760,357
From the Table it is evident that the total spending by attendees of the Usher concert
in Johannesburg almost reached R22 million. The greatest amount is received
through ticket sales, while spending on food, beverages, accommodation and
transport are all items that exceed R2.5 million in total.
Organiser spending stems from the income received from ticket sales (R8.74
million). However, artist fees represent a substantial leakage from the South African
economy, and are subtracted from organiser spending to reflect the true value of the
event. Table 5.2 indicates the spending of both organisers and attendees as well as
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total spending and represents the total direct impact of the event held in
Johannesburg.
Table 5.2: Total direct spending due to the event (ZAR)
AMOUNT (ZAR)
ATTENDEE SPENDING 13,018,595
ORGANISER SPENDING 7,985,281
TOTAL 21,003,876
From Table 5.2 it is evident that the money spent in the Gauteng economy due to the
Usher concert hosted by the Province, amounts to R21 million (i.e. the direct impact
of the event). All spending stems from consumers, since spending by organisers (R8
million) is funded from ticket sales. However, even when one excludes spending on
tickets, the direct impact of attendees exceeds that of the organisers (R13 million).
5.2 Economic value based on SAM calculations
Attendee spending is converted to the associated increase in production and income
in Gauteng using economic multipliers from a SAM for the Gauteng Province. The
classical SAM multiplier approach employs distinct multipliers for each expenditure-
related sector. The multipliers convert expenditure into the associated increase in
output and income and estimate secondary effects as the participant/spectator
spending circulates through the regional economy. The Provincial Social Accounting
Matrix1
(SAM) was used to estimate the regional multiplier (direct and indirect)
impact for Gauteng, which hosted the Usher concert.
Attendee expenditure
The quantification of the direct and indirect impact of the attendees’ expenditure at
the event in the region is summarised in Table 5.3. As this expenditure is partially 1 Social Accounting Matrices are an extended form of the basic Input-Output model.
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applied by the attendees of the event in the purchase of goods and services in the
region, this represents an inflow of money into the region, mobilising economic
activity, generating employment and generating additional revenues for the province.
The total effect on the provincial economy is determined through multipliers, which
can be used to determine the total effect on output (gross additional economic
output) and Gross Value Added (GVA)2
Table 5.3: Impact through output and GVA multipliers (ZAR, 2006 prices) – attendees
. These multiplier measures are intrinsically
linked, relating an initial direct stimulus to the final ‘multiplied’ impact generated.
Output multipliers generally overestimate the impact of an event, due to double
counting, while this is not the case when GVA is used. GVA only takes into account
the value added by each industry due to the increase in demand in one industry.
Value added in production (GVA) is measured by factor incomes in terms of the
compensation of employees and the operating surpluses of firms, and can therefore
be thought of as the increase in income of factors of production in the regional
economy.
Direct impact Total output
impact
Total GVA
impact
Accommodation 2,666,675 3,513,793 1,200,572
Food 3,027,293 5,231,530 2,388,079
Beverages 3,069,652 5,304,731 2,421,494
Transport & Parking 3,339,901 5,443,918 2,254,838
Souvenirs & Other 915,074 1,446,260 664,973
Total (in ZAR) 13,018,595 20,940,232 8,929,957
2 GVA (at basic prices) is a measure of Gross Domestic Product (GDP) which accounts for the impact of taxes and subsidies. This GVA is obtained by subtracting indirect taxes from GDP and then adding subsidies. The GVA at basic prices corresponds to the value of incomes paid to the factors of production – the compensation of employees and the gross operating surpluses of firms. GVA or GDP can be used as multiplier measures, depending on the preferred treatment of taxes and subsidies, on condition that the measure used is clearly identified.
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Table 5.3 reflects the effects on output and income caused by the attendees’
expenditure resulting from the event. It is evident that the R13 million spent by
attendees at the Usher concert in Johannesburg creates output in the province
valuing almost R21 million, while income (as measured through GVA) increases by
almost R9 million.
In terms of the analysis of the expenditure by attendees of the Usher concert held in
Johannesburg, the first conclusion is that the effect on output in Gauteng Province is
approximately R21 million due to strong backward linkages that exist in the
Province. The second conclusion is that the income that resulted from attendee
spending due to the event is approximately R9 million in Gauteng.
Organiser expenditure
To estimate the economic impact of the expenditure made by the organisers of the
event, an approach similar to that for the expenditure by event attendees was
followed. All expenses incurred by the organisers for the two nights at the
Johannesburg venue were allocated into one of the SAM categories (excluding VAT
from Computicket sales and artist fees). These categories are summarised in the
main national accounts sectors, as reflected in Table 5.4. The effects on output for
each sector resulting from the spending of the event organisers in Gauteng are also
shown.
Table 5.4: Impact on output (ZAR, 2006 prices) – event organisers
SECTOR
DIRECT IMPACT TOTAL OUTPUT
IMPACT
Agriculture 0 20,585
Mining 0 51,129
Manufacturing 6,800 2,763,258
Electricity & water 20,000 97,748
Construction 79,804 216,527
Trade & accommodation 2,221,225 2,388,999
Transport & communication 323,889 905,725
30
Financial & business
services 5,142,498 3,736,332
Community services 191,065 121,512
Total (in ZAR) 7,985,281 10,301,813
Table 5.4 illustrates that the largest direct impacts due to organiser spending are in
financial and business services, trade and accommodation followed by transport and
communication. Through the ‘backward linkages’, large indirect impacts are
experienced in the manufacturing and transport and communication industries,
where the total impact is much higher than the direct impact.
Based on the data analysis, it is estimated that total impact of expenditure by
organisers in Gauteng is more than R10.3 million in terms of output generated. The
results of the study suggest that the sectors that benefited most from expenditure in
hosting the events are, in order of importance, financial and business services,
manufacturing, and trade and accommodation. In terms of GVA, the income
generated due to organising the event translates into R5.3 million in Gauteng.
Overall impact
This section represents the overall spending in the local economy that can be
attributed to the event by all attendees (locals and visitors from abroad and from the
rest of South Africa) and organisers. Given the estimation of the economic impact
presented above, it should be kept in mind that, by definition, the calculation of the
economic impact should only include the expenditure that would not have occurred
in the absence of the event. Therefore, the inclusion of local spending in the
calculations is a debateable area.
Although the locals do not bring money into the community from outside regions as
visitors do, it is valuable to include their spending as it has the effect of initiating
economic activity within the local economy. Examined in this way, an event’s
contribution to a local economy is comparable to a local business that both draws
money from, and contributes to, its community. To consider only the tourist rand in
terms of economic impact would greatly underestimate the complete financial
benefits of the event and other similar events. In addition, this study recognises that
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without such events, a significant amount of money would leave the area due to
locals seeking an alternative event for participation in other regions.
The usefulness of the overall impact is that it allows one to measure the amount of
money that the event circulates through the local economy from every source from
which the event draws financial impact. The sum of the impacts gives us an estimate
of the total impact of the event in the region. This is shown in Table 5.5.
The analysis of the results indicates that the total direct economic impact of the
Usher concert held in Johannesburg is R21 million, which translated into output
worth R31.242 million. That is equivalent to an aggregated output multiplier of the
order of 1.49. Therefore, for each rand spent due to the event, 49 cents is generated
additionally in terms of indirect expenditure. The aggregated output multiplier is
obtained by dividing the total output impact by the direct impact.
Table 5.5: Total impact on regional output and gross value added (ZAR million)
Direct Output GVA
Attendee 13.019 20.940 8.930
Organiser 7.985 10.302 5.352
Total 21.004 31.242 14.282
In terms of value added, it is evident that the R21 million direct spending due to the
Usher concert held in Johannesburg led to gross value added of R14.282 million,
indicating the income that factors of production earn due to the spending. This is
equivalent to a GVA or income multiplier of 0.68. Therefore, for every rand spent
due to the Usher concert, someone in Gauteng earns 68 cents in income.
One of the elements of the additional value added that will result from the event is
remuneration of employees that, in turn, affects household income. In particular, the
impact on low-income households can be highlighted, as this can be used as an
indicator of the extent to which the event contributes to poverty alleviation
throughout the provincial economies. This is summarised in Table 5.6. In terms of
GVA, the contribution of the event to income for low-income households totals R1.5
million. In total, the income of households that can be attributed to hosting the
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event in Gauteng is more than R14 million, of which attendee expenditure during the
events is the largest contributor.
Table 5.6: Total impact on regional income (ZAR million)
Low income Other income Total income
Attendee 1.042 7.888 8.930
Organiser 0.467 4.885 5.352
Total 1.509 12.773 14.282
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6. CONCLUSIONS AND RECOMMENDATIONS
6.1 Profile of the Usher concert attendee
DEMOGRAPHIC
PROFILE
JOHANNESBURG
Gender Male (33%); Female (67%)
Age Average age: 28.3years
Marital Status Single (45%)
Home Language English (63%); Afrikaans (5%); Other (32%)
Province of residence Gauteng (80%)
Country of residence
outside RSA borders
• Australia
• Botswana
• Nigeria
• Swaziland
• USA
• Zimbabwe
Level of education Diploma/Degree (14%)
Occupation Professional (46%)
ECONOMIC
INFORMATION
Number of people in
travelling group
Average of 4.69 people
34
Number of people paid
for
Average of 2.75 people
Local residents Local residents (58%)
Length of stay in area Average of one night
Number of tickets
purchased
Average of 2.97 tickets
Expenditure per group R1,720.32
CONSUMER
BEHAVIOUR
Initiator of attendance Self (37%)
Decision to attend A month ago (38%)
Motivation to attend • Word-of-mouth
• Television
• Radio
• Computicket’s website
• Magazines
MUSICAL INTEREST
Music events/festivals
attended in 2011
Average of 2.46 events
35
Preferred artist to
perform in South Africa
• Adele
• Alicia Keys
• Beyoncè
• Chris Brown
• Drake
• Jay-Z
• Justin Bieber
• Lady Gaga
• Mariah Carey
• Nicki Minaj
• R-Kelly
• Rihanna
Attendance of other
music events in 2011
Yes (89%)
No (%)
Preferred type of music • R&B
• Rap
• Pop
• Reggae
• Jazz
36
All time favourite
artist/band/performer
• Beyoncè
• Chris Brown
• Lil Wayne
• R-Kelly
• Rihanna
• Usher
6.2 Conclusions
The following conclusions can be drawn from the study:
• Attendees at the Usher concert were mainly female and English speaking.
• The province of residence of attendees at the Usher concert was mainly Gauteng.
• Foreign visitors were mainly from Australia, Botswana, Nigeria, Swaziland, the USA
and Zimbabwe.
• The respondents at the Usher concert were mainly single, followed a professional
career and averaged 28 years of age.
• Attendees travelled in groups of 5 people, were financially responsible for three
people and were mainly local residents in Soweto where the concerts were held.
• In Soweto, respondents spent an average of one night in the area.
• Respondents spent an average of R1 720.32 at the show
• Respondents at the concert purchased an average of three tickets.
• The decision to attend the Usher concert was made a month before and the
attendance at the concert was initiated by the respondents themselves.
• Respondents at the Usher concert indicated that an average of 2.46 events were
attended in 2011.
• The majority of respondents indicated that they prefer to listen to R&B, rap, pop,
reggae and jazz music and various artists were indicated as their all-time favourite
artists/bands/performers which include: Beyoncè, Chris Brown, Lil Wayne, R-Kelly,
Rihanna and Usher.
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6.3 Economic Impact
The objective of this study was to conduct an economic impact assessment of the Usher
concert held at the Orlando Stadium in Soweto.
• Results indicate that the show had a total direct economic impact of R21 million
which translates into output worth R31.2 million.
• The economic impact is mainly influenced by the numbers of visitors from outside
the area, average spent per person, number of attendees and leakages in the regional
economy.
6.4 Recommendations
The following recommendations were made by the respondents at Usher concert at Orlando
Stadium in Soweto:
• Management should find ways to accommodate people when it rains, particular the
Golden Circle and General standing ticket holders.
• Better marketing strategies should be implemented prior to the event and media such
as television and different channels should be considered.
• Management should also focus on the following:
o Better toilet facilities
o Better food
o Better parking
o Better sound
o Better venue
o Better entrance access
o Enlarging the big screens
• Attendees also recommended that management should consider an indoor venue for
future events
• Management should consider a programme when there a couple of artists performing
to inform concert attendees about the artists