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Artists can do more than soothe your soul with their musical performances, they might also be saving a country's economy! Taylor Swift, the American singer-songwriter is one such artist who is swaying her fans with her music albums and is apparently, also a saviour of the economy.
Illustration by Geostrata
The ongoing concert of the American singer-songwriter and global icon, Taylor Swift "The Eras Tour" started in March this year and will end in November. The tour has made millions of dollars and is estimated to make many more. By November, when her tour ends, she will have covered 106 shows all over the world. This would result in tremendous business and increased economic activity.
As per one estimate, at the end of her tour, the total economic impact would be almost $4.6 billion.
It's intriguing to know how a single Taylor Swift tour can rescue the economy. Supposedly, Taylor Swift has been saving the US economy from recession. An article by Fortune has made this evident by taking the case of Chicago where there was an ever-high demand for hotel rooms, with an average of 45000 rooms filling each night. The same article calls her "not just an entertainment giant".
How does it happen?
The global singer has a huge fan base. A survey conducted by Morning Consult Pro informs that a majority 53% of adults in the USA alone are fans of Taylor Swift. Her followers worldwide on various social media platforms are said to be around 518 million.
The tour continues to fascinate "Swifties" or as her fans are called, across the world & this has created a significant impact on the local economy.
Her Eras tour, which features performances from all of her albums, is the new revolution of the pop music industry and demonstrates itself as a driver of economic growth.
As per Bloomberg, these events are expected to bring in more than $10 million each, and the prices of concert tickets might vary between $11 million to $12 million. Without a doubt, this tour will create an economic impact. This is evidence of her fandom and herself as an artist. Swift's most recent tour has stood out in an otherwise turbulent market, drawing the attention of US Federal Reserve officials and earning a spot in the Beige Book in June.
The leaders of various nations have been willing to see her perform in their nations. The willingness is attracted to their hope of having economic benefits in their country. A nationwide research done by QuestionPro, the Eras Tour, by its end, would have an astounding $5 billion impact on the economy. Each city where she performs will gain profits as local economies get a boost.
The Eras Tour will have a massive "ripple effect" and will impact a variety of industries including the travel industry, lodging, food & beverage & others.
The Federal Reserve Bank of Philadelphia made the same assertion that several other American towns had made regarding the musician's hugely successful concerts: that Taylor Swift's tour had increased travel and tourism in the area.
This is because Swift's concerts frequently bring admirers from different countries, boosting tourism in the cities where she appears. Through travel, dining out, hotel stays, and other connected purchases, this can strengthen local economies. Furthermore, Taylor Swift is philanthropic. A timeline made by Billboard showcases her generous activities over the years. She has made numerous donations for different causes, including helping one of her fans pay her student loans to donations amid the coronavirus.
What does it tell us?
According to Financial Express, the Eras Tour is a good example to consider and to understand the simple logic of demand and supply. Similar to any other commodity with a value, her concert tickets have become highly sought after. With enthusiastic fans and purchasers who are willing to spend more and experience her show, the ones who were able to secure multiple tickets are now in a position of power.
Taylor Swift makes contributions to the music and entertainment industries through her music releases, live performances, and retail sales.
Her popularity fuels ticket sales, streaming revenue, and product sales, producing income for record companies, venues, and related businesses while also generating jobs. This is also demonstrative of the present-day consumer choices who are willing to spend dollars to experience their favourite singers perform. Notice that they are buying experiences, not tangible commodities in such a scenario.
Mega icons like Taylor Swift have the power to shape social views as well as fashion trends and consumer preferences. These changes in cultural dynamics may affect consumer behaviour and purchasing habits. Pop musicians like Taylor Swift, Beyonce etc. enrich cultural discourse and entertainment opportunities. Their impact may raise consumer interest in films, television programs, books, and other kinds of media, which will benefit connected companies. Artists have immense soft power, and they are powerful influencers. Fans who attend these events buy merchandise which further generates sales.
This also shows us that international artists are capable of bringing about a cultural revolution and injecting money into the economy. Large crowds who attend these events increase the cost of admission, travel, lodging, food, and beverages.
The influx of tourists who spend money on a variety of goods and services boosts local economies.
An article by Fortune makes an important point about how celebrities can help politicians. A Canadian MP filed a parliamentary grievance over the singer’s absence from Canadian tour dates. Justin Trudeau, the Canadian Prime Minister, took to Twitter and invited Taylor Swift. The economic angle of the Eras Tour explains why leaders are interested in welcoming Taylor Swift into their countries.
It is obvious that Swift's influence now goes well beyond just music as The Eras Tour maintains its phenomenal run.
ANNIE PRUTHI
TEAM GEOSTRATA