As Swifties recover from the final bow of The Eras Tour, the impact of Taylor Swift’s record-breaking concerts continues to shake up the cities she visited. From packed hotels and bustling restaurants to an influx of global travelers, Toronto and Vancouver saw massive economic gains during her Canadian tour stops.
The Mastercard Economics Institute crunched the numbers using “synthetic control” methodology to reveal just how much spending skyrocketed when Swift took the stage. From triple-digit surges in hotel stays to record-breaking restaurant sales, the data proves that Taylor Swift doesn’t just perform—she revitalizes entire economies.
We sat down with Karim Hassam, Strategic Business Development – Payments at Mastercard Canada, to break down the numbers, explore how The Eras Tour changed Canada’s economic landscape, and discuss what this means for future mega-events. —Noa Nichol
How did the Mastercard Economics Institute utilize the “synthetic control” methodology to measure the economic impact of Taylor Swift’s Eras Tour in Canada?
The “synthetic control” methodology that the Mastercard Economics Institute (MEI) developed refers to a machine learning technique that helps create a parallel universe using data, simulating a scenario where the event (in this case, The Eras Tour) never took place.
The reason why this methodology is particularly effective is because it allows for a clear and straightforward comparison. By comparing the actual scenario (where the tour took place) with the synthetic control (where the tour did not take place), we can measure the expected impact of the tour. The timeliness and high frequency nature of Mastercard’s aggregated and anonymized data uniquely position us to conduct this research.
MEI has studied the economic impact of meaningful events around the world using the synthetic control methodology. It’s part of our ongoing exploration into the intersection of major events and economic trends, and the research demonstrates how major events can be powerful drivers of economic activity. Ultimately, it can reveal how local economies benefit from events of this scale, contributing to the prosperity of consumers and businesses.
What specific trends or spending patterns stood out in restaurant and hotel spending during the concert dates in Toronto and Vancouver?
We saw an overall increase in spending on hotels and restaurants near the venue in both Toronto and Vancouver, however, spending on local restaurants and hotels was higher in Vancouver than it was in Toronto. Toronto saw spending on hotels increase 64% and restaurants near the venue increase 90%, while Vancouver saw a 130% lift in hotels and 127% lift in spending at restaurants near the venue, relative to the scenario where the tour didn’t take place.
The data highlights a significant increase in spending by international travelers. What does this reveal about the global appeal of the Eras Tour?
There’s no doubt that The Eras Tour had mass appeal across the globe. Throughout the entirety of the tour, fans travelled to different cities, countries and continents for the chance to see their favourite pop singer perform. Based on MEI’s consumer insights, the team found that The Eras Tour attracted tourists who otherwise may not have visited these Canadian cities, further driving the impact on the local economy.
What we see is a pattern of consumers deploying their purchasing power and spending their money on the experiences and goods that are important to them.
Vancouver saw a larger economic lift compared to Toronto. What factors do you believe contributed to this difference?
Vancouver was the last stop on The Eras Tours, so it seems that Swifties were taking celebrations to the next level. It was the last chance for anyone who hadn’t had a chance to see the show to experience it live, drawing in a higher number of tourists drawn to the city. This ‘now or never’ mentality could be a driving factor in the comparatively higher Swift Lift in Vancouver versus Toronto.
Vancouver also saw higher spending levels from those who travelled internationally during the timeframe of the Eras Tour shows in that market with a 130% increase in spending at hotels and 127% increase in spending at restaurants near the stadium from global visitors. Many may have turned the tour into an excuse for a bigger vacation, which typically leads to an increase spending across various sectors in the area.
Do you think the spending surge during the concerts will have any lasting economic benefits for the cities, such as increased tourism or business growth?
We’ve seen through our research the incredible impact the tour has had on local economies. While it remains to be seen how this boost will impact businesses long term, understanding consumer spending patterns around large-scale events can help businesses plan for future events and further understand consumer behaviour.
How did spending habits of local attendees differ from those traveling from other provinces or countries during the concert dates?
Based on our research, those who were coming into either Toronto or Vancouver from outside of Canada were spending more than those who were local to the area.
In Toronto, there was a 64% increase in spending at hotels and 90% increase in spending at restaurants near the arena from those who travelled from outside of Canada. There was an even greater lift in spend from those travelling to Vancouver from outside Canada with a 130% increase in spending at hotels and 127% increase in spending at restaurants near the stadium from this cohort.
How can insights from The Eras Tour’s economic impact inform strategies for future large-scale events?
These insights can help businesses better understand consumer behaviour today and in the future. It also demonstrates how major cultural events – from large-scale concert tours to marathon routes – can be powerful drivers of local economic activity.
Understanding these impacts, and the spending ripple effect that reaches industries across the regions where the events take place, can help inform how businesses plan for future large-scale events.
What motivated MEI to analyze the economic impact of The Eras Tour, and how does this initiative align with Mastercard’s broader mission?
It’s no secret that the tour made a significant cultural impact, and now that the final leg is wrapped, we looked at some of the industries where the economic impact was most felt in Canada.
As part of MEI’s Eventful Economy research, we review the economic impact of culturally significant events around the world, helping businesses understand consumer spending patterns.
By examining the intersection of major events and economic trends, we aim to uncover how these events serve as powerful drivers of economic activity. For instance, looking at the impact that Taylor Swift’s recent tour had on our country provides valuable insights into consumer habits and the benefits to local economies. Our findings demonstrate how large-scale events, such as this, contribute substantially to the prosperity of consumers and businesses alike. This ongoing exploration not only helps us better serve our customers but also contributes to our broader goal of supporting economic growth and inclusivity.
*References to Taylor Swift, the Eras Tour and Swift’s albums in this report are not intended to suggest an endorsement, sponsorship or affiliation with Mastercard.
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