Bank Pekao economists have examined the upcoming concerts of American megastar Taylor Swift in Poland. They noticed that in 2023, the concepts of "swiftlation" or, more broadly, "swiftonomics", which refer to the economic impact and increase in spending by the singer's fans on the economies of the cities hosting her concerts, gained popularity.
"As part of the Eras Tour tour, which started in March 2023 and includes 153 concerts around the world, the pop sensation has already traveled through Asia, North, and South America, and now she's in the middle of her European leg of the tour. The entire tournée is scheduled to end in December 2024. Each of her concerts has become something of an economic phenomenon with inflationary implications. The American singer's tour creates enormous demand, especially in the tourist services sector. Hundreds of thousands of fans spend money on concert tickets, accommodation, catering, and souvenirs around the city. They also look for interesting attractions and facilities, such as cafes, museums, or shopping centers," says Bank Pekao in its analysis.
Analysts added that, according to their estimates, Taylor Swift's three concerts in Warsaw will attract tourists who "can spend up to about PLN 190 million (€45 million) in the capital."
"For the countries where Taylor Swift gave a concert during the Eras Tour, we checked the evolution of seasonally adjusted service inflation in the months close to the concert (both before and after) after excluding the trend from the previous months. We will be able to illustrate its strength and dynamics through the common price trajectory, and also some evidence of its impact on inflation," the analysis indicates.
In two European countries, Taylor Swift's concert had an unmatched impact, according to the report.
"This is Sweden and Portugal. In the month of the concert alone, services inflation in Sweden was increased by 0.4 percentage points, and in Portugal by over 1.5 percentage points!”, stated the report.
(aj)
SOURCE: PAP