‘Tourflation?’ Here’s how Beyoncé, Taylor Swift tours could be boosting your local economy
Let’s talk about how the Beyoncé and Taylor Swift tours are boosting local economies.
After Taylor Swift’s three shows in Philadelphia, the Federal Reserve Bank of Philadelphia wrote in its Beige Book that May was the “strongest month for hotel revenue” since the pandemic began, “in large part due to an influx of guests for” the concerts.
While these shows can also cause a surge in hotel prices, which is what some experts are calling ‘tourflation,’ they’re bringing thousands of fans to cities across the globe. Beyoncé’s Sweden performance, for example, brought the “Beyoncé blip,” as one economist calls it, bumping up inflation, Danske Bank Chief Economist Michael Grahn told the Financial Times. And economist Mara Klaunig told NPR’s Weekend Edition that the impact on inflation is likely “very temporary,” and “probably a little bit overstated.”
Plus, it’s not like consumers actually have more money to spend. It’s more like people are shifting spending, instead of generating new spending.
A report from the Common Sense Institute in Colorado found that the concerts in Denver could generate $140 million for the state’s gross domestic product (the value of the goods and services produced) and lead to consumers spending more than $200 million. Swift performed almost two weeks ago but we don’t have new numbers yet.
To put that in perspective: ticket sales for the two Denver shows were $38 million — which is almost two-thirds of the ticket sales of Red Rocks Amphitheater.
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This story was originally published July 27, 2023 at 2:38 PM with the headline "‘Tourflation?’ Here’s how Beyoncé, Taylor Swift tours could be boosting your local economy."
