Toronto to see a ‘Swift’ shift in the city’s economy

Taylor Swift’s much-anticipated concert series in Toronto is projected to generate over $282 million for the city’s economy, according to research from Destination Toronto.

Starting on Nov. 14, Swift will be performing six nights in Toronto as a part of her Canadian leg of The Eras Tour. Experts say the economic boom from Swift’s tour will be substantial and made primarily through Toronto’s hospitality and food sector.

Graham Dobbs, a senior economist at The Dais at Toronto Metropolitan University (TMU), explained the economic impact of Swift’s Toronto concert series, breaking down the estimated $282-million boost.

According to Dobbs, roughly $140 million of the spending is attributed to tourists coming into the city—specifically for the concert—while only around $11 million comes from local attendees, making this event a significant net gain for Toronto’s economy.

“The direct spending will impact the businesses primarily in the downtown core,” he added.

The City of Toronto estimates most of the tour’s concertgoers are expected to travel from outside of Toronto as the city will be seeing up to 500,000 visitors during the two-week period. This includes travel partners and family members who will be in Toronto but aren’t attending the shows.

Travelling for a chance to see Swift perform is not uncommon.  The influx of visitors to Swift’s Toronto performances mirrors the experience of fans like Rachelle Chang, a second-year fashion student at TMU who has travelled internationally to see Swift perform before. She attended The Eras Tour in Seattle after driving three hours from Vancouver and paid $500 for her ticket. 

Chang, who is seeing Swift again in Toronto, explained that the high ticket demand created significant travel challenges.

“The drive took a really long time… on top of that, the Blue Jays were [also] playing in Seattle,” she said. “We ended up being at the border for at least six hours.” 

According to Destination Toronto, visitors will make up 93 per cent of the $150 million fan direct spending.

Much like Chang’s costly trip, other TMU students have split pennies for a chance to see Swift in Toronto, including Vaasavi Karunathasan, a second-year professional communication student. Karunathasan dipped into her savings to get to see her favourite artist.

“When I found out Taylor was coming to Toronto, I thought, ‘Okay, this is what I’m saving up for,’” she said. 

Karunathasan’s friend resold a ticket for about $300 despite its original face value of $250, reflecting the high demand and market price for tickets to Swift’s highly anticipated concert. 

On a student budget, Karunathasan said she mainly spends her savings on commuting. “I don’t usually spend my money frivolously, so the few things that I do spend it on [are] concerts and my PRESTO card,” she said.

The city is also set to gain significant tax revenue from increased transportation, accommodations and entertainment spending. 

Justin Smith, an associate professor of economics at Laurier University, says that some of the indirect tax effects of increased tourism partially include transportation, souvenirs and merchandise. However, he believes these tax effects reflect a reallocation of consumer spending rather than new money entering the economy, as people may forgo other purchases to attend events like concerts.

“There’s not a whole lot of additional spending happening,” he said. “Tax revenues are being shifted towards Toronto and away from other municipalities at the provincial and national level.”

With the event approaching and ticket prices climbing, sales tax has also seen a sharp increase. According to StubHub, tickets for the opening night range from $2,790 to $24,147, meaning new ticket purchasers can expect to pay anywhere from $362.70 to $3,139.11 in taxes per ticket. 

Along with the purchase of tickets, concertgoers will also be adding to Toronto’s burst of tax revenue through merchandise and food sales. Second-year chemistry student Muskaan Bawjs said her and her friend are planning on spending a lot of money before and during the concert.

“[I’ll] definitely [buy] food, merchandise and probably food after the show as well because it is a three-and-a-half hour-long show,” she said.

Bawjs bought her tickets through an online presale a year ago and has been patiently waiting for Swift’s concert. After purchasing three tickets for $370 each, she managed to sell one to her friend and another to a fan for $800, allowing her to cover any additional expenses accumulated at the show. 

Local restaurants and stores are also preparing to attract more customers by increasing their inventories and diversifying their products. This includes The Red Eye, offering “The Swiftie Combo (Taylor’s Version)” which is their smash burger that comes with an exclusive beaded bracelet. Some venues are also hosting special events, such as “Toronto’s Version: Taylgate ‘24,” to engage the Swiftie fan base and further drive business in the surrounding areas.

For TMU students, these new events and promotions not only become more places to spend money but can translate into more job opportunities.

According to Wayne Smith, a hospitality and tourism professor at TMU, hospitality roles like those at the Rogers Centre provide students with reliable income and teach valuable life skills for the post-graduation world. 

“The ability to deal with difficult situations are skills that last you an entire lifetime,” he said.

Elina Ninan, a fourth-year creative industries student who works for the Rogers Centre as a retail sales associate, said Rogers has been actively preparing for the large turnout and high volume of merchandise. “It’s definitely going to be our busiest concert yet,” she said.

She explained the large increase in job opportunities Swift’s concerts are creating.

 “Our managers are calling everybody who worked in the summer,” Ninan said. “If Taylor wasn’t coming, then realistically, there would not be that need to call that many people back.”

Swift’s economic impact will affect businesses around the Rogers Centre as well as fans and concert employees who look for places to eat post-concert. Ninan also said people do fun activities before concerts and will be looking for things to do near the stadium

Ninan estimates there will be 16 days before and after the concert series where Rogers staff­ ­­—including herself—prepare for each day, especially after the event when they audit the remaining merchandise.

Experts like Smith said Swift’s arrival in Toronto will hopefully have a lasting impact on the tourism and hospitality industry as it provides newcomers with a reason to enjoy and learn more about Toronto. 

“There are very few cities on this planet where you can visit as many cultures and experience as many different ways of living as you do in Toronto,” said Smith. “It’s giving the people a reason to come here,  and then hopefully showing them, there’s a whole lot of reasons to keep coming back.”

As Swift’s concert series brings a temporary yet significant economic boost, Smith predicts the benefits will last about a month, covering the period before, during and after the shows. 

However, even with expensive ticket prices and a predicted short-lived economic boost, many fans are just happy to share a place where they feel connected to one another. 

“It’s honestly just a very connecting experience between Swifties,” said Bawjs.