The start of singer’s (Beyoncé) world tour in Sweden last month had an unexpected impact on the country’s economic statistics, with Sweden reporting higher-than-expected inflation of 9.7% in May.
The rise in prices for hotels and restaurants was attributed to the frenzy of demand generated by Beyoncé’s tour. Michael Grahn, an economist at Danske Bank, suggested that Beyoncé’s performance contributed to the jump in hotel rates and may have influenced the increase in recreation and culture prices as well.
The economic significance of Beyoncé’s tour cannot be denied, with estimates suggesting that it could gross nearly £2 billion by the time it concludes in September. Accommodation searches in cities on the tour surged after its announcement, and concert tickets sold out rapidly, leading to soaring prices in the resale market.
In the UK, thousands of fans from around the world flocked to concerts, resulting in high demand for hotel rooms. In one instance, homeless families reportedly had to be relocated from a hotel to accommodate Beyoncé’s fans.
The Stockholm concerts, where Beyoncé performed for two nights to a crowd of 46,000, attracted fans from various countries, particularly the US, where the favorable exchange rate made tickets in Sweden relatively more affordable. Visit Stockholm even referred to the surge in tourism as the “Beyoncé effect.”
While inflation in Sweden reached its peak at 12.3% in December, it dropped to 9.7% in May, slightly higher than expected by financial markets. Michael Grahn noted that such a significant impact from a single artist is rare, comparing it to the influence of major soccer tournaments. He anticipates that trends will return to normal in June.
In summary, Beyoncé’s world tour in Sweden caused a surge in demand for hotels and restaurants, resulting in higher-than-expected inflation in the country.
The economic impact of the tour has been substantial, with fans from around the world flocking to concerts and driving up prices. While the “Beyoncé effect” on inflation is unusual, it is expected to normalize in the following months.
Source – myjoyonline.com
