It’s not just a game: Super Bowl Sunday is an economic powerhouse that regularly generates more than $1 billion in spending for the host city. But new report shows that Taylor Swift’s economic impact isn’t far behind.
According to the Bank of America Institute, Eras Tour concerts generated an average of $77 in restaurant spending and $56 in bar spending for each household during the weekend Swift performed. That’s just shy of the $96 and $74 per household boosted by Super Bowl LVII, respectively, putting Swift on par with the nation’s biggest sporting event.
The Bank of America Institute analyzed spending data from last year’s Super Bowl in Phoenix and the Eras Tour in Pittsburgh last June. The report notes that the two events are not a perfect comparison, with the Super Bowl attracting far more out-of-towners than Eras Tour visitors, who tend to lean more towards local events. But both events undoubtedly have a huge impact on the economy, not just pop culture.
Eras Tour is an economic force: according to experts, it can bring up to Consumer spending is $4.6 billion.. And BofA economist Taylor Bowley, who co-authored the report, said the post-pandemic surge in experience spending, dubbed “revenge spending,” is a big reason why.
“Consumers have really been trying to make up for lost time during the pandemic by spending money on experiences and entertainment,” Bowley said. Luck. “There is definitely an increase in spending in the local economy and that benefit is showing up in a variety of activities.”
Spending data showed that the biggest spike in spending during the Eras Tour was in the dining category, with spending at restaurants and bars 13% above average. (The same thing happened with the Super Bowl, which saw an even bigger spike of more than 25%. Notably, the report shows that liquor store sales in the Phoenix area also hit big during last year’s Super Bowl weekend.)
The analysis fits into a broader trend dubbed fanflation: Consumers are spending more on vacations, allowing leagues and stadiums to raise ticket prices. Tickets for the Eras Tour average $240 (after retailer Live Nation came under scrutiny from the Biden administration over hidden fees). And the average ticket for this year’s Super Bowl in Las Vegas hovers around $11,000. But high prices for large events mean stable profits for event organizers, which is a good sign for the entire live events industry.
“According to Bank of America Global Research, there is certainly an assumption that this ‘fanflation’ is making a significant contribution to the sustainable long-term growth of the experience economy,” Bowley said.
Even if you spend it on live broadcasts slows down after post-pandemic boomAnalysts expect their economic impact to remain strong.
“Consumers are in strong shape. And there has been some cooling, but consumers are still spending money, and they are still spending money on services,” said BofA senior economist David Michael Tinsley, co-author of the report. “According to official data… we are seeing a recovery in consumer confidence. So it all kind of adds up to a picture where the impact of live events in local regions could continue in decent shape into this year, even if there may be some cooling off.”
And just imagine, now that Taylor Swift is heading to the Super Bowl to see her new boyfriend Travis Kelce and his Kansas City Chiefs play the San Francisco 49ers, what the economic impact will be, and in Las Vegas. -Vegas.