How Taylor Swift’s Eras Tour Boosted the US Economy

CNN
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The concert tour that made Taylor Swift a billionaire ends this weekend, but it has already left a lasting impact on the global economy.

The pop superstar, whose final performance of “The Eras Tour” takes place Sunday night at BC Place Stadium in Vancouver, British Columbia, emerged as a business titan after 152 concerts in 51 cities. Eras became the highest-grossing tour of all time, with an estimated windfall of $2.2 billion.

In the United States, concertgoers used about as much as football fans spend for the Super Bowl — an average of $1,300 on travel, hotels, food and merchandise, according to the US Travel Association. But the Super Bowl is just a game and has two weeks of marketing and promotion, while Swift’s tour hit 23 cities in 62 nights over roughly five months.

Swifties spent an estimated $5 billion in the U.S., according to an estimate by research firm Question Pro. But the total takes into account only direct spending, according to the US Travel Association, and could top $10 billion when indirect spending is factored in and when non-ticket holders make purchases outside the venue.

‘Swiftnomics’ revives post-pandemic economies

This purchasing power was part of the “Taylor Swift Effect”, which travel industry analysts considered a “hospitality phenomenon.”

Downtown areas experienced higher traffic and occupancy rates due to the influx of visitors. Swift fans often extended their stay in cities that hosted multiple shows, further boosting local revenue.

“These events have had a major revitalizing effect on local tourism industries and cities still struggling under the effects of the pandemic,” California Center for Jobs & the Economy reported.

Pittsburgh, which hosted two concerts, had its highest weekend hotel occupancy since the pandemic and the second-highest weekend occupancy in its history. Swift’s trip raised the average daily rate for rooms to $309, and the city generated $46 million in direct spending from attendees, 83% of whom did not live in Allegheny County.

The California Center for Jobs & the Economy estimated that Swift’s six-night concert in Los Angeles increased local employment by 3,300 workers and local earnings by $160 million. Before the “Eras” tour hit Los Angeles, hotel jobs were about 15% below their pre-pandemic peak. The U.S. Travel Association estimated that Los Angeles County would benefit from an additional $320 million, with $20 million in sales and local taxes and $9 million in hotel room taxes.

Eras were also a boon for ride-hairing businesses. Lyft reported that the number of rides increased by an average of 8.2% in cities that hosted a Swift concert, and that New Orleans saw a 31% increase.

New Orleans Downtown Development District estimated between 80-90% of concertgoers were visitors. Greater New Orleans, Inc. estimated the economic impact of the concerts to be around $200 million. It does not take into account expenses for restaurants, hotels and other tourist expenses.