Taylor Swift is slowly making her way across the European continent and boosting the economy of one country after another. Although the magic of her record-breaking Eras Tour shows has so far spread across five European countries, pushing housing prices to new heights, France has remained off the radar of this magic.
After a two-month hiatus, the “Gorgeous” global sensation resumed her world tour in May. Three of the four countries — Portugal, Spain and Sweden — saw hotel prices increase in May compared to the past three years, according to a Monday report from BMI, the analytics subsidiary of Fitch Solutions.
However, in the case of France a different picture emerged. Let’s find out why.
Why Swiftonomics couldn’t work its magic in France?
France’s paradoxical response to the so-called “Taylor Swift effect” was attributed to the country’s grand hotel capacity and greater population than other locations.
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BMI researchers found that the six shows held in the French cities of Paris and Lyon were attended by 290,000 people, representing only 0.43% of the country’s population.
The researchers concluded that the country “hosts large events and has a well-developed tourism industry and airport, indicating that it has a strong potential to host large numbers of domestic and international visitors.”
Although the report did not include figures from Swift’s recent show in London in June, a previous report based on data from the Greater London Authority estimated that her shows in the UK capital could bring a massive $381 million (about £300 million) to the city’s economy.
And now, a BMI survey indicates that Taylor’s upcoming concerts in Ireland, the Netherlands, Austria and Switzerland could potentially drive up prices, as these countries have populations of less than 20 million.
Furthermore, according to Ben Julius, founder of tourism company Tourist Italy, even though his trip to Italy won’t begin until mid-July, Milan hotels are already fully booked.
“Our analysis and data show that hotel prices in Milan are on average 45% higher for the nights of Taylor Swift’s show in July 2024, compared to the weeks before and after the show,” Julius told Business Insider.
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Economists ponder the Taylor Swift effect
Despite all the recent reports that “Swiftonomics” is having a positive impact on countries, a Reuters report of June 27 does not fully agree with this picture.
The media outlet suggested that the “Taylor Swift economy” isn’t real and pointed out that calculating her overall contribution to the continent’s economy would require a “magnifying glass.”
Using data from a Stockholm show in May, Reuters reported that 180,000 fans came to see their beloved artist’s concert, most of them coming from across international borders, generating revenue of around 850 million crowns ($81 million) for the city.
While these numbers are being seen as “a great weekend boost for Stockholm and especially its tourism sector”, they represent just a drop in the bucket, despite Sweden’s modest economy, which ranks eighth in the EU.
“It’s simply a weekend that has no obvious or significant impact on overall economic growth,” said Carl Bergqvist, chief economist at the Stockholm Chamber of Commerce.
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ING economist Karsten Brzeski also addressed the question of whether the “Taylor Swift effect” was at work: “It is very small and temporary, at best.” He highlighted that while abundant research work may underscore the economic benefits of these shows, “it would require a magnifying glass to find these so-called benefits in the numbers.”
The same was repeated for the Summer Olympics in France (Paris) in July and the ongoing UEFA Euro 2024 in Germany. Although these grand events have a positive impact on restaurants, beer sales and merchandise sellers, they do not have any significant impact on consumption patterns.
“On a micro level, such events provide a boost, but even that is small and temporary,” said Pete Hansen Kristiansen of Danske Bank.
Still, he agreed that they work wonders for specific sectors, such as hotels and catering, where beer sales see a huge boost at events such as Taylor Swift concerts or countries that play football.
