Taylor Swift performs on The Eras Tour.
Buda Mendes/TAS23/Getty Images
Stadium events are giving US cities a huge economic boost, according to Bank of America.In a research note, the bank compared two Taylor Swift concerts to Super Bowl LVII.The Federal Reserve has also highlighted the “Eras Tour” for boosting consumer spending.
If your city can’t host the Super Bowl, Taylor Swift coming to town might be the next best thing.
That’s according to Bank of America, compared the economic impact of football’s flagship game with the pop superstar’s “Eras Tour” in a new research report.
When Pittsburgh hosted two Swift concerts in June 2023, average household spending in restaurants and bars rose by $77 and $56 respectively that month, economists Taylor Bowley and David Tinsley found.
In comparison, households spent $96 more in restaurants and $74 more in bars when Glendale, Arizona hosted Super Bowl LVII last year, according to the bank.
“Of course, every event is unique and draws in different audiences, but it is clear from this that stadium events can provide a useful boost to local spending,” Bowley and Tinsley said.
The economy expanded at a much faster pace than forecasters were expecting last year, with post-pandemic “funflation” driving above-par growth.
People appear to be more willing to splash the cash on tickets for live events after years of lockdowns, in a phenomenon that Bank of America calls “revenge spending.”
“Consumers seeking to make up time lost during the pandemic by splurging on experiences and entertainment,” Bowley and Tinsley wrote. “Perhaps most notably, major live events appear to be reaping the benefits.”
In June, survey firm QuestionPro estimated that the first leg of Swift’s Eras Tour could generate $4.6 billion in consumer spending, with the average concertgoer forking out $1,300 per show on travel, merch, food and drink, and tickets.
The Federal Reserve also highlighted Swift’s impact on the economy in its July Beige Book, where it pointed out that three shows in Philadelphia in May had lifted hotel revenues.
“Despite the slowing recovery in tourism in the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic, in large part due to an influx of guests for the Taylor Swift concerts in the city,” the central bank said.
As well as the “Eras Tour,” economists have also flagged the “Barbenheimer” box-office craze, Beyoncé’s Renaissance concerts, and the National Football League as live events that boosted consumer spending last year.
