Malta hits a high note: The economic impact of music events on the island

Ed Sheeran, Callum Scott, Raye and Nelly Furtado are among the international artists that recently headlined in Malta drawing massive crowds.

Next month, Malta will also host more global stars, including Sam Smith, Becky Hill and Lost Frequencies during the SummerDaze festival as well as Ronan Keating and Brit Floyd during the Ghaxaq Music Festival.

As excitement builds among locals for these summer events, some of which are more reasonably priced compared to other music festivals, tourism and the general economy receive a substantial economic boost.

In comments given to BusinessNow.mt economist and University of Malta lecturer Stephanie Fabri highlights that Malta can leverage its unique strengths to emerge as a hub for major music events, “leading to enduring economic and social advantages.”

Dr Fabri underscores that through strategic infrastructure investment, cultivation of local talent, and effective marketing as a desirable destination for artists and visitors Malta can enhance its long-term economic prospects.

Here, she identifies four key areas where Malta can benefit economically, the first being tourism.

“Malta can become a year-round destination by establishing itself as a hub for major music events. This would reduce the seasonal fluctuations typical of many tourist destinations, leading to a diverse tourist base,” she argues.

Currently, Dr Fabri observes that the tourism industry reaps the most benefits from such events, as these draw visitors from across the globe, resulting in increased patronage for hotels, restaurants, and other local businesses.

“Such events also generate jobs, both temporary – such as event staff, vendors and security – but also permanent, like organisers, promoters and venue staff,” she says.

Furthermore, she comments that while economic boosts are more often short-term through the immediate revenue injections, they can have medium-to-long-term impacts if boosts are used to promote tourism.

Another key aspect highlighted by Dr Fabri is that the development of infrastructure. She expressed her belief that through investment in venues and facilities can enhance Malta’s capacity to host large-scale events, subsequently attracting even more significant and numerous events.

In May, Prime Minister Robert Abela inaugurated a new concert zone in Ta’ Qali National Park, designated solely for concerts. Through a €16 million investment, the previous concrete factory and illegal construction dump site into the entertainment zone.

One month after the inauguration, 35,000 people flocked to Ta’ Qali to attend the Ed Sheeran concert.

Dr Fabri also notes economic diversification. Expanding on this point, she points out that major music events can spur the growth of related industries.

“This includes event management, production services, and creative industries. If such events embrace technology and innovation then the diversification would be even more sustainable,” she continues.

Beyond the economy: Media exposure, better reputation and a sense of community

Dr Fabri emphasises that such events help in promoting Malta’s reputation as a vibrant cultural hub, “attracting not only tourists but also investors and businesses.”

Additionally, in a highly tech-driven society, glimpses of festivals and music concerts are often shared across the globe, boosting Malta’s media coverage simultaneously promoting local artists and performers.

Finally, Dr Fabri adds that another potential benefit that exists in the cultural sector is community engagement.

She believes that music events promote a sense of community and cultural identity, providing a platform for cultural exchange and artistic expressions.

Wrapping up her thoughts, Dr Fabri concludes that by promoting sustainable sectors, “the environmental sector stands to benefit too” from these events.