Taylor Swift concerts in Toronto had modest impact on Ontario economy: TD report

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This article was published 10/12/2024 (361 days ago), so information in it may no longer be current.

TORONTO – Taylor Swift’s concerts in Toronto boosted recreation and entertainment spending in Ontario compared a year earlier, but the overall economic impact remained modest, according to a report by TD Economics on Tuesday.

While most sectors remained muted, the province’s recreation and entertainment sector in saw spending in November surge 15 per cent compared with a year ago, outperforming the national average, according to TD’s analysis of spending data.

The sectors commonly associated with such events including travel, lodging, clothing and accessories, pushed growth at the upper limit of their typical range but didn’t reach the “extraordinary” territory, the report said.

Overall, the services sector in Ontario saw modest growth, which reflected broader improvements in consumer sentiments rather than the push from concerts.

“What we conclude is that the Eras Tour, as massively spectacular as it’s been, channelled spending into one category, rather than lifting all tides of spending,” the report said.

Economists widely predicted increased consumer spending when Swift’s Eras Tour arrived in Canada’s largest city in November for six performances sprawled across two weeks.

Non-profit Destination Toronto predicted $152 million in direct spending associated with Swift’s Eras Tour during the 10 days it was in town, that the organization anticipated would grow into a $282-million economic impact as the money continued to circulate.

The tourism organization used included predictions about spending on hotels, dining, shopping and other local fare, but did not include the cost of airfare or the concert tickets themselves, as that money was unlikely to stay in the city’s economy.

Of the $152 million in direct spending, Destination Toronto estimated $141 million would come from out-of-town visitors and $11 million was estimated to come from local fans.

TD Economics said it compared the year-over-year changes for the days of the week Taylor Swift performed in Toronto as well as last month with November 2023, but the analysis didn’t include the impact of international visitors.

It said Statistics Canada retail sales data, slated to come out in January, will offer a better outlook on the economic impact of the Eras Tour.

This report by The Canadian Press was first published Dec. 10, 2024.