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Nomura Warns Against Overstating Economic Impact of Taylor Swift's 'Eras' Tour

The Eras Tour did impact local economies, but its impact on the national level maybe marginal.
Taylor Swift attends the "Taylor Swift: The Eras Tour" Concert Movie World Premiere | Getty Images | Photo by John Shearer
Taylor Swift attends the "Taylor Swift: The Eras Tour" Concert Movie World Premiere | Getty Images | Photo by John Shearer

Global financial services group Nomura has cautioned against overstating the economic boost from Taylor Swift's 'Eras' tour. While the concert had a significant impact on local economies, the economic effect of the tour at the national level may be smaller than perceived, economist Si Ying Toh wrote to her clients, as per a CNBC report. The warning sheds light on the lack of accuracy in reporting the tour’s economic significance as previously reports estimated that the tour will add billions to the country’s economy.


The American pop star spent most of last year touring across the U.S. and the globe. The hype around the ‘Eras Tour’ caught the attention of everyone even the Federal Reserve and Wall Street.

However, recent estimates from Japanese investment bank Nomura paint a different picture. The firm has questioned the imprint of the tour on national data.

“Her boost to consumption has certainly enchanted US economic analysts, but we believe the total macroeconomic effect is probably overstated,” Ying Toh wrote to clients last week, as per CNBC.

According to Nomura’s estimates, between the first and third quarter of 2023, Swift’s venture lifted nominal U.S. retail sales by 0.03%, and real gross domestic product by 0.02%. Further, for the entire year, the tour accounted for 0.5% of nominal consumption growth. Thus, the impact of the tour is marginal on the national economy.

Estimates from Australia also showed a marginal impact of Swift’s Sydney and Melbourne concerts on the Australian economy. According to KPMG chief economist, Brendan Rynne, Swift’s concerts added just $10 million to the national economy, as the international megastar walked away with over $100 million in profit. Thus, the media hype around “Swiftonomics” and “Swiftflation”, the net boost to GDP from the Australian tour was much lower than estimated.


According to Rynne’s estimates, the fans spent about $140 million for tickets to Swift’s seven Australian shows. The real economic boost was expected to come from the international visitors whose spending would count as tourism exports.

However, the estimates show that 98% of the ticket purchases were made by locals, which had no net economic effect on the March-quarter gross domestic product report.

“Technically any spend associated with these patrons is just a transfer from one category of spending (or saving) to another – in this instance Tay Tay,” Dr Rynne said in a Financial Review report.

Further, after accounting for taxes, the net economic effect of The Eras Tour stood at $10 million, or 0.002% of GDP, Dr Rynne estimates.

While the national impact is estimated to be marginal, Namura also noted that the economic impact of the tour on the 20 cities the pop star visited is “undeniable”. Some  of these US cities witnessed an increase of  2.1 percentage points in lodging costs during the month of Swift’s visit, as per the STR data cited by Toh.

In the case of Chicago,  lodging prices rose 3.1 percentage points due to Swift’s three concerts. Further, Chicago saw a bump of 8.1 percentage points in occupancy and about a 59% increase in hotel revenue, as per Toh.


Furthermore, in Illinois the consumer price index which is used to calculate cost changes of goods and services over time, increased by 0.5 percentage points from the singer’s visit.

Thus, the smaller economies of countries like Singapore and Sweden are estimated to see the biggest boost from The Eras Tour, according to Toh. Swift is expected to conclude the tour near the end of 2024.