Taylor Swift's concert tour has been breaking the internet since tickets went on sale in 2022.
When presale invitations were sent to 1.5 million people, an additional 2 million found themselves on the waitlist. Anticipation turned to frustration as Ticketmaster’s portal crashed, leaving hopeful buyers waiting for seven to eight hours. It was clear that something big was happening, but little did anyone know just how significant it would be for the economy.
Since kicking off on March 17, Swift's Eras Tour has taken the nation by storm, capturing the hearts of fans in cities far and wide. And now, the Federal Reserve has revealed that Swift's tour is not only making headlines but also giving a substantial boost to the economy.
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The Federal Reserve Bank of Philadelphia recently released a report stating that Swift's tour had a positive impact on travel and tourism in the region, a sentiment echoed by cities across the United States. Market research firm QuestionPro estimated that her tour could contribute $5 billion to the global economy.
The report from the Federal Reserve Bank of Philadelphia emphasized the surge in hotel revenue in May, marking the strongest performance since the pandemic's onset. The growth was largely attributed to the influx of guests attending Swift's concerts in the city. As part of their effort to share economic information and insights, Federal Reserve district banks publish the renowned "Beige Book", where these findings were highlighted.
The ripple effect of Swift's tour was also evident in Chicago, where the tourism and conventions bureau announced a record-breaking number of occupied hotel rooms.
Swift's sold-out shows at Soldier Field played a significant role in this achievement, complemented by the city hosting prominent events such as the annual American Society of Clinical Oncology meeting and the James Beard Awards. Choose Chicago's tweet exulted in the highest-ever occupancy of hotel rooms with over 44,000 rooms filled, generating $39 million in revenue.
Cincinnati experienced a similar surge in tourism when Swift brought her magic to town. Julie Calvert, president and CEO of Visit Cincy, expressed her awe when she said, "Taylor Swift is a force to be reckoned with. The economic impact Swift creates is staggering, as fans travel from far and wide to attend her concerts, filling hotels, restaurants and local attractions. Swift's influence on tourism is a testament to her ability to captivate audiences and drive economic growth."
Where’s The Money Flowing?
Fans traveled from near and far to attend her concerts, which led to hotels, restaurants and local attractions bustling with activity. The weekend of Swift's performances saw downtown Cincinnati hotels amass $2.6 million in revenue.
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Santiago Corrada, CEO of Visit Tampa Bay, drew a comparison between the impact of Swift's concerts and the excitement surrounding a Super Bowl. He emphasized the economic significance that Swift's performances brought, particularly in the hotel sector.
According to PollStar, the Eras Tour has already grossed over $300 million. So far, more than 1.1 million tickets have been sold at an average price of $253. A survey conducted by QuestionPro revealed that Swift concertgoers exceeded their intended budgets, spending an average of $1,300 per show on tickets, outfits, travel and food, surpassing their initial expectations by an average of $720. Despite the higher costs, 71% of respondents deemed the experience worthwhile, and 91% expressed a desire to attend future concerts.
Looking ahead, the Eras Tour is set to conclude on Oct. 1 after a total of 36 shows across the United States and Canada. The Eras Tour is estimated to reach $1.6 billion, according to Forbes.
Biggest Winners
The tour is sending a number of stocks soaring. Notably, many of the major hotel chains have seen stock bumps in recent months. Hilton Hotels Corporation is up nearly 20% in 2023. And AirBNB Inc.’s stock is getting a boost as well with a 38% climb over the past six months. In the startups realm, less traditional methods might be looking to benefit. Wallabing, the ‘Airbnb for RV’s’, recently launched an equity crowdfunding raise on Wefunder that anyone can invest in.
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