Can Taylor Swift’s tour help two of Canada’s biggest cities shake off their economic slumps?

Taylor Swift’s “Eras Tour” is more than just a musical phenomenon—it’s proving to be an economic powerhouse. Swifting through many global cities, the “Eras Tour” has notably boosted tourism activity. With six concerts kicking off in Toronto and three more slated for Vancouver, this tour is expected to give these two key Canadian cities a much-needed economic lift.

Both Toronto and Vancouver are currently facing challenges: high interest rates, unaffordable housing markets, and increased debt loads, have led many Canadians consumers to pull back on their discretionary spending. As a result, businesses are feeling the pinch. According to the BDL’s Business Sales Tracker, Toronto has had the worst sales performance in the country in 2024, with sales down almost 9% compared to last year. Interestingly, Vancouver is the only other major Canadian city to see a decline in sales since last year, with a slight drop of 1%.

These weak sales are weighing on local business sentiment. According to our Business Expectations Index, Vancouver and Toronto are among the least optimistic cities in Canada, ranking 16th and 17th, respectively, out of the top 20 cities.

Business sentiment is depressed in Greater Toronto and Vancouver among Canada’s major cities…

Economic Impact: “Are you Ready for it?”

The big question is: can Taylor’s tour lift the near-term economic outlook for these two cities to close out 2024?

As Toronto readies itself for its sold-out concerts, the city is hoping for a boost in local spending. Destination Toronto estimates that the six shows in Toronto could generate $152 million in direct spending, and that’s only part of the story.

With nearly 300,000 fans coming to Toronto and another 160,000 fans in Vancouver, demand for tickets, accommodations, restaurants, and transportation will skyrocket. Many hotels in Toronto are reportedly sold-out, with some seeing nearly an 80% jump in sales compared to the same period last year.

When you factor in all the indirect spending—on event staff, merchandise, food, and more—the total economic boost to Toronto could reach $280 million. These concerts create temporary jobs and inject spending into local businesses, from hotels to restaurants, giving the economy a much-needed lift.

Tracking the Era

According to Destination Toronto, the vast majority (over 90%) of the direct spending linked to these concerts is expected to come from non-residents. Fans from across the country — and internationally — will boost economic activity. The BDL’s tracker uses Point-of-Sale (PoS) data and will track any increased activity. For Vancouver, we anticipate a similar dynamic, as fans pour into the city, spending on hotels, local attractions, and concert merchandise.

Taylor Swift’s Eras Tour is setting a new standard for economic impact, and it’s not just Toronto and Vancouver that should be taking notes. This kind of large-scale event can teach us a lot about leveraging cultural moments for regional economic growth, and about how timely data can give us insights on local conditions in cities across the country.