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Taylor Swift’s concerts in Toronto had a positive impact on the city’s recreation and entertainment sector, according to a report by TD Economics. While most sectors saw modest growth, spending in the recreation and entertainment sector surged 15% compared to the same time last year. This outperformed the national average and was likely due to the influx of fans attending Swift’s concerts.
However, the overall economic impact of the concerts remained modest. The report suggests that the concerts channeled spending into one category, rather than lifting all tides of spending. This means that while the concerts may have boosted spending in the recreation and entertainment sector, other sectors did not see a significant increase in spending.
The report also notes that the services sector in Ontario saw modest growth, which was likely due to broader improvements in consumer sentiments rather than the impact of the concerts. This suggests that the concerts may have had a limited impact on the overall economy of Ontario.
Non-profit organization Destination Toronto had predicted a $152 million direct spending impact from the concerts, with an estimated $282 million economic impact as the money continued to circulate. However, this did not include the cost of airfare or concert tickets, which were unlikely to stay in the city’s economy.
The report by TD Economics compared the year-over-year changes for the days of the week Swift performed in Toronto, as well as last month with November 2023. However, it did not include the impact of international visitors. The full impact of the concerts will be better understood when Statistics Canada releases retail sales data in January.
Overall, while the concerts may have had a positive impact on the recreation and entertainment sector in Toronto, the overall economic impact was modest. This suggests that while the concerts were a success in terms of attendance and fan experience, they may not have had a significant impact on the economy of Ontario.