Ye’s Sold-Out Haikou Show Sparks Economic Boom: Is Hainan Repositioning as a Global Concert Hub?

Formerly known as Kanye West, the Grammy Award-winning rapper Ye recently performed a sold-out show in Haikou, the capital of China’s Hainan Province. According to local government, the “Vultures Listening Experience World Tour - Haikou” sold over 42,000 tickets, generating more than 50 million yuan (around 7.2 million USD) in ticket sales and over 373 million yuan in tourism revenue. Plans for a second show are already underway.

What is the impact of the “Yeconomy”?

Beyond ticket sales, Ye’s listening party had a significant impact on the local economy. On the day of the event (the 15th), Haikou’s citywide hotel occupancy rate averaged 83.42%, a 41.82% year-on-year increase and a 10.44% rise month-on-month. Among 23 key hotels tracked, the average occupancy rate was 88.3%, with 53 tourist hotels reporting occupancy above 90%. This surge in hotel bookings is estimated to have brought in over 45 million yuan in revenue.

Additionally, major scenic spots and rural tourist destinations in the city attracted 73,900 visitors. Sales at Haikou’s duty-free shops hit 56 million yuan, reflecting a 4.5% year-on-year increase and a 21.5% jump from the previous month.

Some Xiaohongshu users reported spending more than 10,000 yuan on their Haikou trip, including flights. The listening party also coincided with the start of the Mid-Autumn Festival holiday, leading many of Ye’s fans to stay in the city throughout the holiday period. According to the Haikou Municipal Bureau of Tourism, Culture, Radio, Television, and Sports, Haikou attracted over 426,700 tourists during this time, contributing more than 748 million yuan to the local economy.

How did Haikou promote the event?

Haikou offered Ye's fans far more than just a listening party—it was a comprehensive consumer experience. To welcome the fans, the city's hotels, attractions, tourist goods, dining establishments, duty-free shops, and retail outlets all coordinated to provide over 100 exclusive fan discounts. This created a variety of entertainment and shopping options for both residents and tourists, further amplifying the economic benefits of the event.

In a unique touch, the Haikou government even requested that taxi drivers play Ye’s music exclusively during this period.

How did retail sector react to it?

CDF Haikou offered special discounts, vouchers, and 10x loyalty points for concert ticket holders. The Haikou Global Premium Duty-Free City provided exclusive deals, gifts, spa experiences, and more. The Sanya Duty-Free Haikou Mission Hills store offered discount coupons and beauty and liquor experience vouchers. More than 11 shopping malls across the city also participated, providing discounts and vouchers to enhance the shopping experience for concert-goers.

Is Hainan becoming China’s concert event capital?

The Haikou government is signaling plans to bring in more international stars (rumors include Charlie Puth and Lady Gaga), aiming to integrate further with the global entertainment scene. According to Wang Ke, Party Secretary and Director of Haikou’s Bureau of Tourism, Culture, Radio, Television, and Sports, the city’s openness and business-friendly environment—supported by the Free Trade Port’s policies—were key to the success of recent events.

Additionally, Hainan offers visa-free entry to tourists from 59 countries, part of the island’s strategy to attract international visitors and build its reputation as a world-class destination. Hosting international concerts is a key part of Hainan’s plan to position itself as a global duty-free shopping and tourism hotspot. By 2025, Hainan will close its customs borders and implement duty-free policies island-wide, creating a more open and business-friendly environment to attract global talent and investment. This aligns with Hainan’s broader vision of becoming a world-class free trade hub, solidifying its position as an attractive destination for tourism and international commerce.

Meanwhile, Hainan’s duty-free business has been struggling due to the continued drop in the yen’s exchange rate and the increase in outbound travel by Chinese tourists. According to Haikou Customs, duty-free sales totaled 20.132 billion yuan from January to July 2024, down 30.4% year-on-year. However, transforming Hainan into a global performing arts center could help revive consumer interest.