How Taylor Swift's 'The Eras Tour' will impact Tokyo's economy
Pop sensation Taylor Swift is rewriting the "playbook of entertainment economics" through her ongoing globally acclaimed The Eras Tour. After a phenomenal 2023 tour, Swift is now set to grace Tokyo Dome, Japan for a four-day spectacle from Wednesday to Saturday (local time). Swift's star power is so immense that experts predict the concert will generate an impressive 34.1B yen ($229.6M). Let's decode how it will impact Tokyo's economy.
Why does this story matter?
According to a Bank of America report titled Funflation in Full Force, the concept of "funflation" is gaining momentum as people are spending more on live entertainment post-COVID-19. Swift is at the forefront of capitalizing on this effect with her globe-trotting tour. A stadium arena experience, this tour is a nostalgic journey through every "era" of Swift's illustrious 17-year career. Commencing in March 2023 and extending until December 2024, it is rapidly becoming the largest tour in history.
High ticket prices will contribute to Tokyo's economy
One reason for the tour's profitability is the high ticket prices. Prices for seats close to the stage have doubled since Swift's 2018 Reputation tour at the Tokyo Dome. Attendees are likely to dine out at restaurants and shop for goods. This was reflected when some US towns experienced up to 95% revenue increases on the nights of Swift's concerts, while Tokyo is expected to see a 25% increase each night.
Tokyo will gain from the ripple effect of the tour
Swift's concerts significantly impact regional GDP. According to a report, each Eras show contributes approximately $36M in both direct and indirect spending to the local economy, thereby supporting over 300 jobs per show. This economic boost is particularly noteworthy for Tokyo, where the tour's influence is anticipated to be significant as it is one of only three locations Swift will visit in the Asia Pacific region.
'Swift's inflation effect on other countries
The Swift craze extends beyond Japan, with Australia gearing up for her concerts in February. Reserve Bank of Australia Governor Michele Bullock reportedly called it the "Taylor Swift inflation" effect, where fans adjust their spending to afford tour tickets and related expenses. Reuters reported that Swift's tour is the first in history to gross over $1B, with fans spending additional bucks on transportation and accommodation.
Swift will be rushing to Super Bowl after Tokyo tour
Immediately following the conclusion of her last concert in Tokyo on Saturday (February 10), Swift will make a brief stop at this weekend's Super Bowl. During the event, she is expected to cheer on her current beau, Travis Kelce of the Kansas City Chiefs, from the VIP suites. Subsequently, the pop icon is set to perform in Australia and Singapore before venturing to Europe as part of a tour predicted to reach a staggering $2B in overall earnings.