- Stadium events are giving US cities a huge economic boost, the Bank of America said.
- In a research note, the bank compared two Taylor Swift concerts with Super Bowl LVII.
If your city can't host the Super Bowl, a Taylor Swift concert or two might be the next best thing, financially speaking.
That's according to Bank of America, which compared the economic impact of football's flagship game with the pop superstar's "Eras Tour" in a research report.
When Pittsburgh hosted two Swift concerts in June 2023, average household spending in restaurants and bars rose by $77 and $56 respectively that month, economists Taylor Bowley and David Tinsley found.
In comparison, households spent $96 more in restaurants and $74 more in bars when Glendale, Arizona, hosted Super Bowl LVII last year, the bank said.
"Of course, every event is unique and draws in different audiences, but it is clear from this that stadium events can provide a useful boost to local spending," Bowley and Tinsley said.
The economy expanded much faster than forecasters were expecting last year, with post-pandemic "funflation" driving above-par growth.
People appear to be more willing to splash the cash on tickets for live events after years of lockdowns, in a phenomenon that Bank of America calls "revenge spending."
"Consumers seeking to make up time lost during the pandemic by splurging on experiences and entertainment," Bowley and Tinsley wrote. "Perhaps most notably, major live events appear to be reaping the benefits."
In June, survey firm QuestionPro estimated that the first leg of Swift's "Eras" tour could generate $4.6 billion in consumer spending, with the average concertgoer forking out $1,300 per show on travel, merch, food and drink, and tickets.
The Federal Reserve also highlighted Swift's impact on the economy in its July Beige Book, which pointed out that three Philadelphia shows had lifted hotel revenues in May.
"Despite the slowing recovery in tourism in the region overall, one contact highlighted that May was the strongest month for hotel revenue in Philadelphia since the onset of the pandemic, in large part due to an influx of guests for the Taylor Swift concerts in the city," the central bank said.
As well as the "Eras" tour, economists have also flagged the "Barbenheimer" box-office craze, Beyoncé's "Renaissance" concerts, and the National Football League as live events that boosted consumer spending last year.