As someone who is not particularly a huge Taylor Swift fan, it is still amazing to me the amount of influence she has in our world today. So, I wanted to look more into how her recent actions have impacted the economy. Her tour has made around $4.1 billion assuming that she keeps around 85% or the tour revenue which is more than the yearly economic output of 42 countries in the world today. For each individual show, it was estimated that fans spent all together around $93 million on everything from tickets to travel to the extravagant outfits that her attendees wear. I thought that it was interesting that the Federal Reserve Bank of Philadelphia used the term swift effect in one of their reports because of the boost seen in hotel revenue for the locations near her shows. Her tour brought “some much-needed dollars to the tourism industry,” and with every city she visited they saw millions of dollars flowing into their regional economy. Her tour also temporarily decreased the unemployment rate and increased the hourly wage of workers in the areas her show took place. It is undeniable that her tour has made a large impact on the regions she traveled to, and it is interesting to see how a bunch of fans can positively stimulate small regions of our country.
It is amazing that she can produce this much revenue, but I wonder what the social cost of the pollution that she causes by flying on private planes so often. I would be curious to see what the adjusted number is.
ReplyDeleteThe amount of tourist revenue generated in other countries is always interesting. It would be fascinating to compare the revenue that Taylor Swift produces in these countries to the revenue of other well known artists on their tours.
ReplyDeleteTaylor Swift definitely has a huge effect on certain cities when she has a concert there. From ticket sales, to restaurant sales, to hotel sales, Taylor causes a large impact on consumption in the cities she performs.
ReplyDeleteLink: https://www.cnbc.com/amp/2024/02/23/economic-boost-from-taylor-swifts-eras-tour-could-be-overstated-nomura-warns.html
ReplyDeleteI found an interesting article on CNBC with the same topics. Even though I'm a huge fan of Taylor Swift also, this opinion is worth considering. Author Nomura warns that while Taylor Swift's Eras Tour boosted local economies where concerts were held, its national-level impact on the big economy might be smaller than anticipated. Local boosts in moving prices and occupancy were notable, but their effects might not significantly reflect in larger economies like the U.S., U.K., or Japan. However, smaller economies such as Singapore and Sweden could see more significant macroeconomic benefits.
What other events/people have a similar impact like this? Is Taylor Swift the only one, or are there other things like the Super Bowl or other artists who improve local economies when they come to town?
ReplyDelete