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Boosting GDP in the USA: Singer Taylor Swift's "Eras Tour" promises billions in sales
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Sarah Yenesel / EPO
Some call it beyflation, others swiftflation: The prices for concert tickets for famous US pop stars such as Beyoncé (41) and Taylor Swift (33) are going through the roof worldwide – so much so that this is driving up inflation rates in some countries. But the ticket prices are only part of the sales that the singers generate with their concerts. Merchandising, hotel stays, restaurant visits – fans spend a lot of money around the tour to be close to their star.
The independent research institute Common Sense from the US state of Colorado has now calculated that Taylor Swift's entire "Eras Tour" could lead to consumer spending of 4.6 billion dollars in the USA. That would be more than the gross domestic product of 35 countries.
The concert in Denver alone, which will take place next weekend, is expected to contribute 140 million dollars to the gross domestic product of the state of Colorado. The city expects about 75,000 Swift fans to attend the two sold-out concerts. A recent survey by the Common Sense Institute showed that visitors spend an average of 1327 US dollars on site. That would be more than $200 million in direct consumer spending related to the Swift concerts in Denver.
U.S. Federal Reserve mentions Swift concerts in Beige Book
Even the US Federal Reserve is now worth mentioning the Taylor Swift concerts. According to the current Beige Book of the monetary authorities, hotels in Philadelphia earned more in May than at any time since the beginning of the pandemic. This is largely due to the influx of guests for the Swift concerts in the city – despite the slowing recovery of tourism in the region as a whole.
According to hotel booking platform Booking.com, prices for hotels in some cities have more than tripled ahead of the tour. This included Pittsburgh, Minneapolis, and Kansas City. During the Swift tour, the occupancy rate of hotels in Allegheny County, which includes Pittsburgh, was close to 100 percent. The booking platform even collapsed at times in the run-up to the event due to strong demand. The same happened to the ticket seller Ticketmaster, which had to cancel advance sales for the Swift concerts in France.
Millions of enquiries in German cities
Sales are also in full swing in Germany. Nearly three million fans tried last Wednesday to buy tickets for Swift's German concerts next year. There have been up to one million inquiries per German city, the ticket company Eventim announced. Swift will play seven concerts in Gelsenkirchen, Hamburg and Munich in July 2024.
Swift is not the only musician to make such waves. The recent enormous impact of the music industry on the economy is also evident in other countries. In the UK, for example, prices for leisure and culture rose by 6.8 percent in May compared to the same period last year, the strongest price in 30 years.
Who will complete the first billion-dollar tour?
After almost three years of Corona drought, the live business for the big names in the music industry is now better than ever. Observers are already talking about the most successful concert year in history. There is even speculation as to whether Taylor Swift or Beyoncé might be the first to go on a billion-dollar tour.
"I've never seen so many artists tour at the same time," says Stacy Merida, a professor of music business at American University in Washington. Elton John has just completed his "Farewell Yellow Brick Road" tour with revenues of 910 million dollars (810 million euros), according to Billboard Boxscore. In doing so, he overtook Ed Sheeran, who had "only" grossed $776 million with his "Divide" tour.
But while the demand for concerts is increasing among fans, there is also anger about the business practices of the major ticket providers. For years, concertgoers have been complaining about hidden fees, skyrocketing prices, pre-sales only for VIP fans, and so-called scalpers who buy up tickets and sell them right away.
mje/dpa,Reuters