With seven shows across Australia’s two biggest cities from Feb. 16-26, the tour has the potential to make a significant economic impact in Melbourne. It could generate a substantial amount of economic value, contributing to the city’s overall growth and prosperity.
As Taylor Swift begins her Eras tour in Australia on Friday, Genevieve Mylne will be one of the many fans contributing to the local economy, albeit temporarily. The 19-year-old student has made plans to attend the show twice in Melbourne and at least once in Sydney, spending around A$2,000 ($1,300) on tickets, flights, and accommodation.
“I definitely wouldn’t spend this much on any other concert,” said Mylne, who’s put aside her wages as a gymnastics coach for the spending splurge. “I don’t feel that strongly about any other artist.”
According to Melbourne’s Lord Mayor Sally Capp, the tour’s seven shows across Australia’s two biggest cities from Feb. 16-26 have the potential to generate a significant economic value of A$1.2 billion in Melbourne alone. However, given the country’s low savings rate and consumer pessimism due to cost-of-living concerns, economists predict that this boost is only temporary.
According to James McIntyre at Bloomberg Economics, the Australian leg of the Eras tour is expected to stimulate spending on tickets, travel, and hospitality. However, this surge in expenditure may have repercussions for other sectors of the economy. Given the current economic climate, where households are facing financial strain due to increased rates and a low savings rate, it is possible that spending on concerts and related activities may take precedence over purchases in other areas. This could have a particularly negative impact on already struggling discretionary sectors.
The billionaire singer has caused quite a stir in the world of economics with her record-breaking global tour, which has been referred to as a phenomenon known as “Swiftonomics.” According to Bloomberg Economics, the significant impact of the megastar’s performances, along with Beyoncé’s tour and the success of the “Barbenheimer” films, is estimated to have contributed around $8.5 billion to the growth of the US economy in the third quarter of 2023.
The four sold-out concerts at Sydney’s Accor Stadium are set to be the largest series of major events since the city hosted the Olympic Games in 2000, according to Kerrie Mather, the CEO of Venues NSW. According to her, a significant portion of the 320,000 fans in Sydney will be coming from outside the city or even from other countries.
According to Accommodation Australia CEO Michael Johnson, concerts of this magnitude have significantly boosted hotel demand. He mentioned that occupancy rates in Melbourne have increased by 20% compared to last year, while Sydney has seen a 10% increase.
The high demand for flights and accommodation has led to a significant increase in prices. Reserve Bank of Australia Governor Michele Bullock recently discussed this issue during a media conference.
“People are deciding what’s really important to them,” Bullock stated. It is evident that Taylor Swift holds great significance for many individuals. The governor mentioned that her own children had saved money for tickets and made sacrifices to be able to afford Taylor Swift.
Meanwhile, Mylne is travelling a distance of 900 kilometres (560 miles) from Sydney to Melbourne for this weekend’s shows. She is prepared with over 80 homemade friendship bracelets to exchange with fellow fans.
“I think this is like the most absurd concert experience I’ll ever have,” the psychology student said. The experience, “even if it means spending copious amounts of money, is worth it.”
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