Jul 14, 2023
Taylor Swift gives U.S. hotels a boost as singer’s concert tour skips Canada
, BNN Bloomberg
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Taylor Swift’s concert tour is giving the hotel industry a boost as tourism rebounds from the pandemic, according to the U.S. Federal Reserve.
The pop star’s economic impact got a mention in the U.S. central bank’s latest “Beige Book” report, a summary of economic conditions published eight times a year.
A report from the Federal Reserve Bank of Philadelphia said Swift’s May concert stood out amid slow tourism growth and declining consumer spending in the region.
“Despite the slowing recovery in tourism in the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic, in large part due to an influx of guests for the Taylor Swift concerts in the city,” read the report published July 12.
Swift’s “The Eras Tour,” which features hit songs from her catalog of studio albums, is currently on track to bring in more than US$1 billion and become the highest-grossing tour in concert history, Bloomberg reported on June 30, citing estimates from industry publication Pollstar. That figure doesn’t include merchandise sales from the tour or economic activity for surrounding businesses that are benefitting from the influx of concertgoers.
The singer is bringing in ticket sales of more than US$13 million per night, charging an average of $254 per ticket. In a year marked by concert ticket inflation, Bloomberg’s report noted that the cost of Swift’s tickets has risen by $134 since she was last on tour in 2018.
But high ticket costs haven’t deterred fans from snapping up seats to her shows.
Speaking with BNN Bloomberg this week, D.A. Davidson managing director and research analyst Tom Forte highlighted that as the world reopens from pandemic shutdowns, consumers are choosing to spend their disposable income on live experiences and cutting back on spending in other areas.
“It’s basically revenge travel and Taylor Swift,” he said.
“At the current stage of the pandemic, what we’re seeing is consumers are spending a large portion of their discretionary income on travel, and also on live events.”
Canadian tourism businesses don’t appear poised to reap the benefits from Swift’s concert tour, however. The singer has not announced any dates for Canada in her international schedule after wrapping her U.S. shows.
“I know places in Canada would love to have you. So, don’t make it another cruel summer,” Trudeau replied to Swift’s Twitter announcement of European concert dates, in a reference to one of her popular songs. “We hope to see you soon.”
With files from Bloomberg News.
