By Jack Mendel
As music superstar Taylor Swift begins her mega-tour in Edinburgh Scotland, her loyal fans will be giving a boost to the UK economy.
But how much will it help British business, and where will that benefit be felt the most?
In the past, lots have been made of so-called ‘Swiftonomics‘, and a similar phenomenon has happened with other global megastars like Beyonce.
According to Monzo last December, spending on event tickets spiked 340 per cent when Beyonce’s Renaissance world tour went on sale, and 460 per cent when Taylor Swift’s Eras dropped onto Ticketmaster.
Her Eras Tour also tore through the United States last year generating approximately$5bn (£3.95bn) – and netting the singer around $13m (£10.2m) per stop, not bad going.
So it’s fair to say the tour could have an impact.
The UK tour in numbers
Taylor Swift’s UK Eras tour includes a whopping 15 shows across the UK. On Friday, Saturday and Sunday, she is playing three gigs in Edinburgh.
It is estimated that some 200,000 fans will attend concerts at the Scottish Gas Murrayfield stadium, home to Rugby Union, usually. And 15,000 others are set to descend on the Scottish capital, without a ticket.
Tickets have been going for four figures, with some Swifties shelling up more than£4,000 to get a glimpse of the icon.
While the tour will give a much-needed boost to the local Edinburgh economy, there have also been reports of soaring hotel and Airbnb prices; leading to some fans going for Glasgow instead.
According to Edinburgh Live, the average fan will be spending more than £120 on accommodation, £110 on travel and £56 on food, meaning on top of tickets, it will boost the local economy by more than £250 a night, a pop.
Thanks Taylor!
The music icon is then playing three shows in Liverpool, one of the music capitals of the world famous for the Beatles of course. After a show in Cardiff, she is hitting the gargantuan Wembley Stadium for three sold-out shows.
Wembley has a capacity of 90,000 fans over three nights. That’s a lot.
And if you’re in London for a show, you may as well do some sightseeing, right?
According to the Metro, when the tickets went on sale, for a seated ticket it was between £58.65 – £194.75, while general admission standing was £110.40. Front standing would set Swifties back at least £172.25.
There has however been a major problem when it comes to resale, with fans buying lots of tickets and selling them on for inflated prices, often in the thousands.
Swift then heads to Ireland for three shows in Dublin.
How much is it going to help?
The Eras tour is expected to be the highest-grossing ever, but could Swift’s arrival in the UK show up in national statistics?
In February, it was reported that economists at Nomura put some thought into this vital question.
And concluded, unfortunately, that it probably won’t. The UK’s economy is too big to be impacted on a national scale by a few concerts, no matter how epic.
But that’s not to say it won’t have an impact.
Beyonce’s Renaissance tour was credited with a bump in Swedish inflation as prices at hotels and restaurants rose in response to soaring demand. Danske Bank reckoned that some fans booked hotels up to 40 miles outside Stockholm for Beyonce’s gig.
Swift’s shows in the US have had a similar impact already. Nomura estimates that monthly ‘lodging away from home’ inflation rose 2.1 percentage points for cities included on the Eras tour.
But what about the UK, like, now?
Analysts have poured over the impact of the tour, with some having decided that it will give local boosts to towns and cities, more than an overall national bump.
Others think its impact has been underplayed.
Dan Coatsworth, an investment analyst at AJ Bell, said: “Swiftonomics is in full motion as superstar Taylor Swift prepares to kick off the UK leg of the Eras Tour in Scotland on Friday.
“Suggestions she might be responsible for a near-£1 billion boost to the UK economy could prove to be an understatement.”
Anecdotal evidence from studying social media groups dedicated to the UK tour implies a large chunk of the crowd are coming from overseas, particularly the US, as it’s often cheaper for them to travel and see the musician on these shores than their homeland.
Coatsworth added: “Overseas visitors might use the occasion to conduct their own tour of the UK, so it’s not just Taylor Swift’s juggernauts going up and down the country.”
“That extra injection of spending on food, accommodation and leisure activities, potentially across multiple days, implies an extra cash injection into the economy beyond activities purely linked to a concert such as tickets, food, drink and merchandise.”
He further added that “stock market names like Premier Inn-owner Whitbread, pubs group Wetherspoons and British Airways’ parent International Consolidated Airlines are among the companies primed for a boost in customers.”
According to the AJ Bell investment analyst, “management teams may have already left a ‘Blank Space’ in the draft of their next results to complete with Swift-related comments once they’ve totted up the takings”.
First stop, Edinburgh
Edinburgh, where the tour kicks off, could see a nearly £50m boost to the economy, some analysts think.
Vouchercodes claimed businesses are set for an additional £47m injection with £23m for local hospitality, and £12.6m on accommodation.
The website said that while 200,000 Swifties will attend shows, 15,000 others will also make the trip without a ticket.
Anita Naik, Savings Expert at VoucherCodes.co.uk, said: “It’s set to be a big weekend for Edinburgh with thousands of excited Swifties taking over the city for The Eras Tour. All these extra people will lead to an influx of spending which I’m sure is music to many businesses ears.
“One of the most popular purchases this weekend will be drinks as fans try to stay hydrated and get themselves in a dancing mood. Whilst spirits (228,084) and fizz (192,674) will be popular, it’s wine that’ll be the drink of choice with 284,649 glasses ordered. This is set to be an unforgettable weekend!”
A Swift warning too?
With thousands of Swifties travelling to the UK to see her shows – and many more desperate to try and get a ticket – there have been warnings about rip-offs and scams.
A recent survey by Nationwide showed that over a third of young people have been affected by fake ticket scams or know someone who has been conned.
The lender warned that Taylor Swift’s Eras Tour and the Euros have accounted for nearly four in 10 fake ticket purchases, and with Swift, tickets can often go for four figures. It said the average loss from scammers is £394.
Jim Winters, Nationwide’s director of economic crime urged Swifties to “double check that what they are buying is the real deal.
“Taking time out might seem like going to the back of the queue but if you see an offer that is too good to be true, it probably is. It is why we offer a Scam Checker Service that protects purchases, as customers can check in with us before they check out. And if we give the go ahead for a payment and a scam takes place, we will fully refund the amount lost.”
