'A temporary bump': Taylor Swift's effect on inflation and tourism during the Eras Tour

CTV National News: The 'Swift factor' Allison Bamford takes a look at how Taylor Swift's Era's Tour is having an effect on tourism and Europe's economy.

Taylor Swift fans know all too well the costs that come with travelling to see the singer live on her Eras Tour.

But for many Swifties it is worth the price.

“We were on the floor and quite close to Taylor, and the fans were really fun,” said Hayley Cattell, who saw Swift in Dublin last month.

“We met people from all around the world. It was definitely the best location to go.”

Cattell flew from Saskatchewan to Europe at the end of June and estimated her entire two-and-a-half week trip cost less than it would for her to fly within Canada to see the Eras show later this year.

“We actually didn't book accommodations until about two months out from leaving, and we were able to find rooms in a hostel that were honestly comparable to any hostel or traveler hostel that you can find in Europe,” Cattell said.

“I think I only ended up spending about $300 Canadian for four nights in Dublin.”

Cattell might be one of the lucky ones.

Reports out of the United Kingdom show hotel prices jumped nearly 9 per cent in the month of June when Swift performed 10 nights across Scotland, Wales and England. Some economists are calling it the “Taylor Swift effect” and say they believe the price increase led to the U.K.’s inflation rate flat-lining at two per cent, instead of dropping as some had expected.

“It’s highly likely it’s a temporary bump,” said Jason Childs, an economics professor at the University of Regina.

Prices at restaurants and hotel rooms contribute to each country’s inflation rate.

Childs said prices for accommodations, food and drinks tend to increase when demand is high.

“You want to charge a high price to the people who are absolutely desperate to come,” he said.

“We get Taylor Swift coming in and there are no deals because you’re going to fill up.”

Swift is credited with single-handedly boosting the hotel industry in the United States last summer.

The Canadian market hopes to see similar numbers when the megastar brings her Eras Tour to Toronto and Vancouver later this year.

“A six concert event is going to be incredible for Toronto and the hotel community,” said Sara Anghel, the president and CEO of the Greater Toronto Hotel Association (GTHA).

Based on the U.S. leg of the tour, the GTHA estimates Swifties could inject more than $50 million into the economy in November.

“Definitely we would see a great increase to the economy in a month that is not usually very busy,” Anghel said.

Following Toronto’s dates, Swift is expected to close out her Eras Tour in Vancouver this December.

Hotel prices have already skyrocketed in that city as fans struggle to find a vacant hotel room.

Swift’s final show is scheduled for Dec. 8.