Taylor Swift’s impact on the economy: A concert tour like no other
Taylor Swift’s Eras Tour has been making waves not just in the music industry, but also in the world of economics. The pop star’s year-long tour has been a powerhouse of economic activity, leaving a lasting impact on the local economies she visited.
A recent report from Japanese investment bank Nomura has shed light on the economic boost that Swift’s tour provided to the cities she performed in. While the tour may have had a marginal effect on national data, it undeniably had a significant impact on the 20 U.S. cities she visited.
According to Nomura’s estimates, Swift’s tour contributed to a 0.03% increase in U.S. retail sales and a 0.02% increase in real gross domestic product between the first and third quarters of 2023. For the entire year, the tour accounted for 0.5% of nominal consumption growth.
The economic boost from Swift’s tour, often referred to as the “Swift-lift,” was particularly notable in the cities she visited. For example, lodging prices in Chicago saw a significant increase during Swift’s three shows, leading to a rise in occupancy and hotel revenue per available room.
While these local improvements may not show up in national-level statistics for larger economies, they are still worth noting as potential economic catalysts in countries around the globe. Small economies like Singapore and Sweden could see the biggest macroeconomic boosts from Swift’s tour.
In a world where exogenous shocks can have a major impact on economic modeling, events like concert tours are becoming increasingly important in driving economic activity. Swift’s tour, which is set to conclude in 2024, has already made a significant mark on the economy, with the film version of the tour expected to continue its success through streaming platforms.
Swift’s Eras Tour is proof that music can not only entertain, but also stimulate local economies and drive economic growth. As we look to the future, it will be interesting to see how events like concert tours continue to shape the economic landscape.
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