From Taylor Swift’s record-breaking concert tours to Mega-Sports events and the surge of screen tourism inspired by hit shows like HBO’s The White Lotus, these phenomena are transforming travel patterns worldwide. The allure of mega-events and on-screen destinations can generate substantial short-term economic boosts, yet they also bring challenges. Dr. Isabella Blengini, Associate Professor of Economics at EHL Hospitality Business School, delves into the complex and multi-dimensional impacts of event tourism and pop culture tourism.
As the tourism industry rebounds from recent downturns, event- and pop culture-driven travel is playing a central role in reinvigorating global destinations, particularly city tourism. Mega-events like sports championships, high-profile concerts, and screen tourism—where fans flock to destinations featured in films and TV shows—are influencing where people travel and how local economies adapt to this influx. These trends offer immense economic benefits but also raise concerns about long-term sustainability and impacts on local communities, especially in areas where tourism is not a structurally strong economic contributor.
Mega-Events: Short-Term Surge, Long-Term Planning
The summer of 2024 has been a prime example and a culmination point of mass-event tourism, from international football championships and the Olympics to high-profile concert tours like Taylor Swift’s Eras Tour. Event tourism (sports, culture, music) has been a high-growth tourism segment in recent years and highly important economic value creator to established destinations. New York’s entertainment industry contributes directly with 10 percent to the economy. London had over 750 events (on top of Soho theater productions) between 2017 and 20, creating 2.5 Bn GBP in economic value. So for good reasons, mega-events like these are highly sought after by countries looking to boost visibility and attract tourists. According to Dr. Blengini, they can stimulate local economies in the short term, but their long-term impact depends on careful planning.
“Mega-events offer developing countries an excuse to invest in infrastructure, like highways and public transportation, while more developed nations use these opportunities to refresh their image,” says Dr. Blengini. However, she warns that these events are often not as profitable as they seem.
Nevertheless, event-driven tourism can bring impressive economic results. For example, data shows that major concerts bring a 25% boost to hotel performance, with luxury hotels seeing the largest occupancy increases. The average daily rate (ADR) for upscale hotels also surges, driven by demand. During Adele’s ten-concert residency in Munich, more than 730,000 fans attended, contributing significantly to the city’s tourism economy. Munich’s economic department noted that one Adele concertgoer is economically worth about two regular holiday tourists.
Beyond direct spending, these events generate indirect benefits through the so-called “Halo Effect”, where the marketing visibility of a destination leads to longer-term tourism inflows. According to research on film-induced tourism, destinations can experience up to a 50% increase in visitation within five years after being featured in a film or TV show . This lasting effect is often fueled by word-of-mouth recommendations, which remain a crucial inspiration for new travelers.
Source: CoStar, STR August 2024
The Taylor Swift Effect: Dynamic Pricing and Local Economies
A notable phenomenon in recent years is the economic surge caused by blockbuster entertainment events like Taylor Swift’s tours, known as “Swiftonomics”. U.S. economists estimated that Swift’s U.S. tour in 2023 generated 4.6 billion US-Dollar in consumer spending, more than the economic output of several U.S. states. Local economies can see major shifts in hospitality demand, retail spending, and even inflation. For instance, Beyoncé’s concerts in Stockholm were calculated to have contributed to Sweden’s inflation rate increase by 0,3 percentage points due to rising prices.
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