Beyoncé’s tour boosts Swedish inflation as hotel rates surge
The music industry powerhouse Beyoncé has garnered attention for her potential influence on inflation, particularly in Sweden. Last month, as part of the singer’s world tour, two concerts held in Stockholm resulted in increased hotel bookings and restaurant visits. Consequently, Sweden reported a higher-than-expected inflation rate of 9.7% in May.
Michael Grahn, an economist at Danske Bank, highlights that the surge in hotel rates can likely be attributed to the renowned singer’s performances. Additionally, Beyoncé may have contributed to the unexpected elevation in recreation and culture prices. Grahn stated, “I wouldn’t … blame Beyoncé for [the] high inflation print, but her performance and global demand to see her perform in Sweden apparently added a little to it.”
Beyoncé’s first solo tour in seven years is proving to be a significant economic event. By the end of her tour in September, earnings are projected to gross almost £2bn. Following the announcement of her tour schedule, accommodation searches in the prospective cities skyrocketed, according to Airbnb. Many concert tickets sold out within days, with resale prices soaring.
While performances took place in the United Kingdom, approximately 60,000 people flocked to Cardiff, including fans from Lebanon, the United States, and Australia. Such high demand for hotel rooms related to Beyoncé’s London concert even resulted in some homeless families being relocated by a local council to accommodate her fans.
The Stockholm concerts, which saw Beyoncé entertain a crowd of 46,000 across two nights, attracted attendees globally, especially from the US where the strong dollar against the krona made ticket prices seem relatively affordable. Visit Stockholm referred to the boost in tourism as the “Beyoncé effect” in an email to the Washington Post.
In December, Swedish inflation peaked at 12.3%. According to official data, May’s inflation rate of 9.7% was down from 10.5% in April, with financial markets expecting approximately 9.4%. Grahn posited that a single star’s impact of this calibre is “very rare,” mentioning that large football tournaments can occasionally produce a similar outcome. He also anticipates that the trends will return to normal in June.
