The Eras Tour: A "Swift" Boost to the US Economy
Taylor Swift is a force to be reckoned with. However, her impact extends far beyond Billboard charts and the entertainment industry. With her groundbreaking Eras Tour, Swift has not only captivated millions of fans, but has also orchestrated a significant economic boost for the U.S. Let's delve into the ways Taylor Swift's Eras Tour has contributed to the U.S. economy this summer.
Eras Tour Revenue and Job Creation
The U.S. leg of the Eras Tour has grossed $2.2 billion in ticket sales alone. On top of that, the tour has sparked an additional $5 billion in consumer spending, with Swifties spending an average of $1,300 in travel, hotel, food & beverage, and merchandise. That level of spending is on par with the Super Bowl, but multiple that Super Bowl effect over 53 different nights in 20 different locations across the U.S.
Here’s a snapshot at the local economics impact on some of the cities in the tour:
Pittsburgh generated $46 million in direct spending. Hotel occupancy averaged at 95% and pushed average daily room rates (ADR) to $309, a 106% increase.
Los Angeles benefited from a massive economic impact of $320 million, including $20 million in sales and local sales tax and another $9 million in hotel room taxes.
Denver’s two concerts resulted in visitor spending that contributed an estimated $140 million to the state’s GDP.
Cincinnati’s impact was estimated at $48 million, of which $20 million was from visitors.
Moreover, the Eras tour has created employment opportunities on a massive scale. From event staff and security personnel to local vendors supplying goods and services at concert venues, the Eras Tour has been an engine for employment. Taylor's six-night stint in Los Angeles alone created 3,300 jobs alone.
But there's more: Taylor has also paid an estimated $55 million in bonuses to her entire tour staff. Putting on a "once in a lifetime" concert is complex; it requires significant logistics, stage production, and operations. As a reward for that work ethic, each of her 50 truck drivers received a $100,000 bonus, for ferrying her enormous production across the U.S.
Dan Egan, VP of behavioural finance and investing at Betterment, notes these windfalls, which often outstrip their recipients' yearly salaries, can be hugely influential. In some cases, he expects much of this money to pay down high-interest debt and increase people's spending power--all which funnel more money into the U.S. economy. Egan also notes that these bonuses can "take the weight off both financially and psychologically...[which] really, really improves lives".
Eras Tour Film Sales
The Eras Tour hasn't just been a series of concerts; it's been a cinematic phenomenon at theaters. Shortly after wrapping the U.S. leg of her tour, Taylor released a concert film across 8,500 theaters. Before the film was even released, AMC Theatres announced worldwide ticket pre-sales had already exceeded $100 million. First-day sales alone topped $26m, breaking box office records.
However, since Swift cut a deal with AMC Entertainment to release "The Eras Tour" film instead of a traditional studio, the box office numbers are an even bigger win for Taylor, AMC Entertainment, and local AMC theaters. According to Matthew Belloni, who first reported the terms of Swift’s theatrical deal in his Puck newsletter, 43 percent of the movie’s gross profits will go to theaters, and the remaining 57 percent will be shared by Swift and AMC.
Look What You Made Me Do...for the U.S. Economy
From boosting local economies and creating jobs to influencing tourism and theater revenue, the Eras Tour has left an indelible mark on the U.S. economy. Taylor underscores the high potential of the entertainment industry--that concerts, travel, and experiences can be an economic catalyst.