A leading Danske Bank economist estimates that the Beyonce Renaissance Tour launching in Stockholm contributed to Sweden’s rising inflation.
Beyonce fans flocking to Sweden’s capital city sent hotel prices soaring, and economist Michael Grahn is calling it a “Beyonce blip.” He estimates that the global superstar’s tour contributed around 0.2 of a percentage point to the country’s inflation.
According to the Swedish government, the country’s inflation was 9.7 percent in May, falling from 10.5 percent the month before. Economists at FactSet expected inflation to drop to 9.2 percent last month; Statistics Sweden said that hotel and restaurant prices rose 3.3 percent in May from the month before.
“This is very rare,” said Grahn. “Basically, her fans vacuumed hotels around Stockholm with a radius of some 40 miles,” leading to increased hotel prices.
“Beyonce probably had an effect on hotel prices in Stockholm the week she performed here,” added Carl Mårtensson, a price statistician at Statistics Sweden, noting that the star’s effect on hotel prices that week “should not have had any significant impact” on the country’s inflation.
When tickets for Beyonce’s Renaissance Tour went on sale earlier this year, Ticketmaster said fan demand for the initial round of tickets exceeded the number available by more than 800 percent. Grahn says that Sweden’s krona currency is economically weak, so tickets and other costs are typically cheaper for fans purchasing from another country.
The Renaissance Tour, named for Beyonce’s most recent album, is making the rounds in Europe before heading to the US next month. The superstar’s first tour in seven years, it’s understandable why fans are chomping at the bit to get tickets.
But while Beyonce’s power is undeniable, other superstars have economically impacted the cities they’ve visited, including Taylor Swift. Her Las Vegas stop on her Eras Tour in March helped the state to nearly match pre-pandemic visitor levels, according to the Las Vegas tourism authority.