Swiftonomics

Today she's the most recognizable artist in North America, if not the world.

Her songwriting spans half a dozen genres, and her economic impact transforms cities.

When she tells a story, people listen, which is what makes her a business powerhouse.

Numerous colleges and top universities including Stanford and Harvard are embracing her popularity by offering courses on the singer, studying her lyrics, legacy, and cultural impact.

... and she was named TIME magazine’s 2023 Person of the Year.

Taylor Swift, a 34-year-old singer with an estimated net worth of $1.1 billion, has amassed 12 Grammys, 23 MTV Music Awards, and 39 Billboard Music Awards, making her one of the most celebrated artists in history.

With more than 282 million Instagram followers and over 95 million Twitter followers, she became the first female artist to surpass 100 million monthly listeners on Spotify.

This pop powerhouse is currently on her international "Eras" tour, which has kept her in the spotlight all year, featuring album announcements, tour dates, and concert movie releases.

In her remarkable three-hour performance, Swift takes her audience on an enchanting journey through her various musical eras over the last 17 years. It is poised to become the biggest and most lucrative concert run in American history, starting with two shows in Glendale, continuing its five-continent run through December 2024 with an extensive schedule of 151 concert dates.

Source: Yahoo Finance

The Eras Tour is projected to generate close to USD 5 billion in consumer spending in the United States alone, surpassing even the revenue generated by the Super Bowl for local businesses.

With stadiums around the globe completely sold out, Swift’s concert run is expected to be the highest grossing tour in history, with revenue and attendance figures surpassing those from Elton John’s iconic Farewell Yellow Brick Road and also likely to generate nearly four times the total earnings of Swift’s previous five tours combined.

Sources: Billboard; Pollstar; Statista; Business Insider; Eventworld

Additionally, the concert film titled "Taylor Swift: The Eras Tour” has shattered records, becoming the biggest concert film of all time with around USD 261 million worldwide and about USD 180 million domestically during its release weekend.

Global box office revenue of "Taylor Swift: The Eras Tour" concert movie

as of January 4, 2024, by region (in U.S. million dollars)

Her impact is so significant that Singapore invested nearly USD 3 million (equals to IDR 47 billion) to secure an exclusive deal with her for the Southeast Asian leg of her Eras Tour—her sole stop in Southeast Asia.

Just last week, she performed six sold-out shows in Singapore, generating substantial benefits for the Singaporean economy, particularly in tourism-related sectors such as hospitality, retail, travel, and dining, mirroring the effects seen in other cities where Taylor Swift has performed.

Economists estimate that Swift's concerts in Singapore contributed up to SGD 500 million, (equivalent to IDR 5.8 trillion), and were projected to contribute 0.25% to the country's first-quarter GDP.

And this is also what causes FOMO to extend to Bangkok. Even Indonesia has shown interest, with the tourism minister, Sandiaga Uno, telling Bloomberg TV that Indonesia needs "Swiftonomics" for tourism and is considering offering incentives up to IDR 2 trillion for large events such as concerts.

Up to this point, we can admit that Taylor Swift's economic impact extends beyond her concerts.

Source: YourGirlsKnow

Typically, every USD 100 spent on live performances generates an estimated USD 300 in ancillary local spending on things like hotels, food and transportation. But for the Eras Tour, Swifties are dropping an estimated $1,300-$1,500 on things like outfits and costumes, merchandise, dining, and travel—boosting local economies by hundreds of millions of dollars in one weekend. 

Source: BigAlpha

Etsy sellers have reported nearly USD 5.5 million in sales of friendship bracelets, marking a growth of 30% yoy. Sales in the jewelry category, including jewelry making kits, surged by 40% since mid-April when the trend of making Swift-inspired friendship bracelets gained momentum. Moreover, cities where Swift performed on tour experienced a 300% increase in sales of items like beads and jewelry.

Source: X

Interestingly, Swift was not the only big name from the music industry on tour this year. Beyoncé, Ed Sheeran, Coldplay, Harry Styles, The Weeknd, and Elton John all embarked on major tours of their own.

However, on a scale of 0 to 100 (least to most popular searches), Taylor Swift averaged a score of 100 over the past year, while Beyoncé, the second-most searched singer on the list, only scored 26.

Source: Statista; Harper's Bazaar; Billboard; Variety

This indicates that we're essentially in the Taylor Swift cinematic universe at this particular moment. With more tour stops coming up and three additional albums set to be re-released, Swift shows no signs of slowing down anytime soon.

This event can be a benchmark for how the creative economy should be managed. Not limited to music concerts, but for all branches of the creative economy.

Various studies have concluded that the role of creative and creative economy is vital as a source of income, employment absorption, and a broad multiplier effect in a country's economy.

The most relevant question now is, what about Indonesia? Many argue that Indonesia's creative economy has immense potential-in fact, Indonesia's creative sector's contribution to GDP is in the top 3 globally, following the United States and South Korea, but its development is not yet optimal.

We have nature, culture and adventure that are endless in season. Our destinations can be visited all year round. With Indonesia's diverse offerings, there's an opportunity to tap into this potential and create a prosperous future.

Let's learn from Swift's journey and use creativity for positive change, ensuring a brighter future for Indonesia and beyond.