By Kelley A. McClinchey, Wilfrid Laurier University; Frédéric Dimanche, Toronto Metropolitan University; The Conversation
FILE: Taylor Swift The Eras Tour Midnights Era Set (Photo by Paolo Villanueva @itspaolopv / Paolo V/Flickr, CC BY 2.0)
Taylor Swift is set to perform six shows over two weeks at Toronto’s Rogers Centre as part of her Eras Tour, running from Nov. 14 to 16 and Nov. 21 to 23. These, and other cultural and entertainment mega-events, can attract thousands of visitors, have widespread media reach and have an extensive impact on both the local community and tourism.
The Eras tour is expected to generate $282 million in economic impact for Toronto. Of that, $152 million will come from direct spending, with 93 per cent coming from non-residents.
The concerts are expected to generate nearly $40 million in tax revenue across all levels of government. With very little to compare this with, the city is ramping up to welcome fans, or “Swifties,” to Toronto.
As of Sept. 29, hotel bookings for the dates of the concert were up 83 per cent compared to the same dates last year, according to tourism non-profit Destination Toronto. Some hotels and short-term rentals are up to 10 times higher than their typical cost. Nightly rates are high compared to the $220–$350 cost for the same stay a week later.
Dynamic pricing, which adjusts rates based on demand, has become common in travel, accommodations and entertainment. The lack of transparency in how prices are set fuels perceptions about overcharging clients and has raised questions about whether regulations are needed to protect consumers against price gouging.
Nevertheless, many visitors are willing to spend a lot for this one-time event, putting aside financial concerns for experiential and emotional value.
Who benefits from mega-events?
Projected economic gains from hosting such events can appear impressive on paper, but questions remain about who ultimately benefits. Several reports in support of hosting mega-events use inflated numbers to document indirect economic impacts and job creation without accounting for initial public spending and other hosting costs.
Most of the HST tax revenue generated from major events like this end up going to the province of Ontario, leaving cities to cover event management expenses themselves. The municipal government will receive $5 to $7.5 million in hotel taxes, parking fees and public transit fares.
As Toronto looks ahead to hosting the 2026 FIFA World Cup with little support from the federal and provincial governments, the city is considering hiking its hotel tax to help offset costs.
Despite the economic boost these mega-events bring, many of the perceived economic benefits will likely not trickle down to those working in the tourism sector. Inflated hospitality and attraction prices are not equitably reflected in increased wages or direct benefits for employees.
A 2024 report by the Tourism Industry Association of Ontario and the Ontario Tourism Education Corporation noted that many tourism jobs are still low-wage and part-time, with many businesses lacking skilled staff.
Hospitality workers are the first to be furloughed in a downturn, as we saw with the COVID-19 pandemic. Shouldn’t they benefit from the high revenues generated by a mega-event in the form of increased wages or bonuses?
Further ethical concerns persist in the hospitality and entertainment sector regarding labour stress due to poor leadership, scheduling, low wages and job precarity.
As demand for cultural and entertainment experiences grows, these conditions may put more strain on the hospitality sector — especially given that hotels laid off a significant number of workers during the pandemic, and the industry continues to be in a labour deficit.
Social impacts on downtown
The social impacts of mega-events are also important to consider. The city has implemented a limited activity zone around the Rogers Centre during the two-week period when Swift is performing.
This temporary measure aims to ensure the maximum usability of roads, sidewalks and bicycle paths while limiting road construction and other municipal services. However, the influx of nearly 240,000 fans could lead to tension as residents navigate a busier-than-usual downtown.
The downtown core may become overcrowded and noisy, and create even more traffic congestion than usual, impacting residents’ quality of life in the short term. Problems can include increased crime, litter, stress on local resources and unpleasant visitor interactions. This may result in negative residents’ perceptions and lower tolerance for future events, such as the FIFA World Cup.
Sixty thousand people are also expected to attend Toronto’s Version: Taylgate ‘24, a pre-concert event at the Metro Toronto Convention Centre near the concert venue. Several other events promote inclusion and accessibility for those who cannot get concert tickets. Fundraisers and bracelet-trading events emphasize the participatory and embodied nature of cultural events, rather than just passive consumption.
While these events can provide a sense of pride, community, place and togetherness, smaller cultural festivals are more socially sustainable than large-scale sports and entertainment events. They can also respond to the precarity, fluidity and corporate consolidation of popular cultural tourism.
A delicate balance
Social sustainability is about supporting processes and events that contribute to the overall well-being and quality of life for residents in the long term.
Although one-time live entertainment mega-events like the Eras tour have immense benefits, more support could be given to local cultural talents, such as theatre productions, visual artists, outdoor concerts and neighbourhood street festivals.
Smaller community events are vital in supporting local arts, heritage, culture and traditions, and contribute to making the destination appealing. More support should be devoted to the sustainability of Toronto’s cultural tourism resources to ensure tourism is truly regenerative in the long run.
Concerts like Swift’s can bring short-term economic benefits that include increased tourism, job creation and global recognition to cities like Toronto — and Vancouver in early December — but weighing these advantages against the social costs that often accompany them is essential. How long will the Swift’s Eras tour “afterglow” last?
For these events to have a lasting legacy, urban planners and policymakers must balance economic gains with strategies that mitigate adverse impacts on local communities, ensuring these events benefit both visitors and residents alike.
Kelley A. McClinchey, Teaching Faculty, Geography and Environmental Studies, Wilfrid Laurier University and Frédéric Dimanche, Professor and Director, Ted Rogers School of Hospitality and Tourism Management, Toronto Metropolitan University
This article is republished from The Conversation under a Creative Commons license. Read the original article.
