TAYLOR SWIFT'S ECONOMIC CLOUT HAS NOW COME FOR EUROPE

  • Taylor Swift's economic impact boosted the US economy by billions.
  • Now, she might do the same thing in Europe on the latest leg of her Eras Tour.

"Baby, let the games begin."

The lyrics from Taylor Swift's "…Ready For It?" might be ringing through Europe's hospitality industry as "Swiftonomics" bears down on Europe.

Over the last year, Swift's Eras Tour and its affiliated film cemented her economic prowess in the United States, injecting billions into the economy.

Now, she's bringing that power to the European leg of her worldwide tour, during which she will perform in at least 18 cities.

Local businesses are seeing Swift's impact weeks ahead of her concerts. Swift doesn't perform in Italy until mid-July, but hotels are already booked and busy.

"Our analysis and data shows that hotel prices in Milan are on average 45% higher for the nights of Taylor Swift's shows in the city in July 2024, compared to the weeks before and after the show," Ben Julius, the founder of a tourism company called Tourist Italy, told Business Insider.

Julius added that the concertgoers only stay for an average of two nights, but the mass demand is "creating a wider tourism trickle-down effect" as the rising costs of travel and lodging push other tourists to find other places to stay.

European economists monitoring inflation rates in the service sector are examining Swift's tour to see what impact it will have on Europe's economy.

Officials at the European Central Bank cut interest rates this month after inflation slowed, but there are concerns that Swift's arrival in different cities could cause a new uptick.

Because when Swift comes to town, she rallies tens of thousands of fans who will spend money on a bevy of services like restaurants, lodging, and local attractions. Some Swifties will travel hours — and across countries — to attend a concert, which puts a demand on airfare and other transportation options.

Barclays' Consumer Spend research found that Swift's tour is expected to boost the UK economy by £997 million ($1.26 billion).

Central bankers told The New York Times that even small changes to data could affect their decision to continue cutting rates.

"All those tiny quirks are going to matter a lot," TD Securities strategist Lucas Krishan told the outlet.

Krishan added that the service inflation rate could rise in August when Swift returns to London. Her tour dates — August 15 to August 20 — overlap with the day Europe's statistics agency records price data.

If the data shows too much increase, the Bank of England could theoretically pause plans to lower rates in September.

Economist George Moran told the Times, however, that he thinks it's unlikely Swift will impact decision-making at the Bank of England.

"Taylor Swift is unlikely to be affecting central bank policy. She's unlikely to be affecting government policy," Moran, who works for Nomura, said. "And I don't think it's a sustainable option for growth in a country to rely on having superstar concerts."

He told the Times the impact would likely be "more local than macro."

"Taylor Swift is obviously a massive phenomenon, and the areas that she's visiting is causing a big buzz in the hospitality sector," he said.

Representatives for Swift did not respond to a request for comment from Business Insider.

2024-06-23T13:17:43Z dg43tfdfdgfd