Adelaide cut out of millions in profit from Taylor Swift Eras Tour
Australia’s two largest cities are about to reap the profits of the biggest pop tour in decades as experts reveal Adelaide’s economy has missed out on more than $100m.
Entertainment
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Taylor Swift is set to inject more than a billion dollars into the Australian economy with an expert calling her arrival a “once in a lifetime opportunity for small business” while South Australia has lost out on at least $84m.
The Grammy-winning artist will arrive on Australian shores in time for her February 16 Melbourne concert after appearing by her boyfriend’s side at the Super Bowl in Las Vegas USA on Monday.
Set to perform seven concerts across Sydney and Melbourne only, senior lecturer of tourism, hospitality and event management Paul Strickland from La Trobe Business School said Swift’s The Eras Tour would inject $1.2bn into the local economy.
“This is a once in a lifetime tourism and hospitality opportunity for Victoria. Taylor will finish this tour and take a break touring for a few years. We might not see her in Australia again for some time,” he said.
Dr Strickland said tourism and hospitality in Sydney and Melbourne “are set to gain” from the tour.
“Locals will spend on average $300 on tickets, plus food and beverages. Interstate tourist(s) will spend around $1100 for additional accommodation and travel,” he said.
“Mega concerts such as these are fantastic for the local economy, they inject huge amounts of money and small businesses particularly benefit.
“From a tourism perspective, this is a money can’t buy opportunity, it puts Melbourne on the international map.”
If 20,000 South Australians are among the 632,000 people to attend a Taylor Swift concert in Sydney or Melbourne, and spent $1100 each on travel and accommodation, as Dr Strickland predicted, that means South Australians are spending $22m interstate and not in South Australia.
Associate Professor of finance from RMIT University in Melbourne Angel Zhong said South Australia had lost no less than $84m due to Swift not performing in Adelaide. So, coupled with the $22m interstate spend, the total loss to the SA economy is therefore $106m.
“The absence of Taylor Swift’s concert in Adelaide means potential missed opportunities for local business in the immediate sectors, such as travel, dining and merchandise, and the community to benefit from increased tourism and economic activity,” she said.
“If Adelaide was to host Swift’s Eras Tour, based on two concerts that can be held in Adelaide Oval, such as Adele’s concert back in 2017, 140,000 fans could have attended.
“The absence of such events in Adelaide deprives residents of valuable cultural experiences and opportunities for social interaction, which are essential for building a vibrant and cohesive community over time.”
Dr Zhong said she predicted an economic injection Australia-wide of anywhere between $302m and $450m based on each ticket holder spending approximately $900 each.
“This is not just for NSW and Victoria, which are the biggest winners this time,” she said.
“The Eras tour will create opportunities across the country, as it will stimulate the economy and create opportunities in a number of sectors such as travel and merchandise business. the economic impact will likely extend beyond New South Wales and Victoria, positively affecting the entire country.”
Gemma Green, from Victoria, managed to secure tickets to see Taylor Swift in Melbourne on Saturday.
“I don’t know how I managed to score one (a ticket),” Ms Green, 37, said.
She secured tickets “up in the bleachers” and was pleased with her total spend of “a couple hundred dollars”.
“I spent probably not as much as other people,” Ms Green said.
“I bought a new sequin outfit and we made all these friendship bracelets.”
However, her sisters-in-law Lyla and Elise, who she is going to the concert with, spent “a couple thousand”, Ms Green said.
Another fan, Amelie Moore, from Cumberland Park, said she is going to the last night of the Sydney leg of Swift’s tour.
“I’m going as the album Reputation and I’ve made probably 10 friendship bracelets,” Ms Moore, 19, said.
Her tickets cost $600, with flights and accommodation totalling a further $1800.
“It adds up when you have to go to another state,” Ms Moore said.
A state government spokesman said Adelaide Oval would not have struggled to sell out Taylor Swift concerts, and the government was confident it would soon prove it when hosting P!nk in two week’s time.
“The decision by Taylor Swift’s management to perform in just two Australian cities is broadly in line with her strategy elsewhere in the world on the Eras tour and likely to be a business decision to optimise expenses,” they said.
“Taylor Swift is performing in just two cities in England (Liverpool and London), and in the entirety of Asia (Tokyo and Singapore). Both venues in Asia have smaller concert capacities than the Adelaide Oval.
“We have no doubt that if she chose to perform in Adelaide, Taylor Swift would have no trouble selling out multiple concerts.”
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