Beyoncé’s tour is boosting an entire country’s net worth – but how?
Did Beyoncé just shake up Sweden’s economy with her show-stopping performances? You bet she did! Queen Bey’s Renaissance World Tour was kicked off last month in Stockholm and the BeyHive’s demand was so staggering that a second show had to be added. The flurry of activity not only swarmed the concert venue but buzzed its way into the hotels and restaurants too, giving the Swedish economy a well-deserved boost!
Her net worth may be only part of the puzzle, but let’s look for ourselves!
The Beyoncé Effect
According to Michael Grahn, the chief economist at Danske Bank in Sweden, the country’s economy experienced a “Beyoncé blip”. For those who don’t speak in economics lingo, this basically means that her presence and the subsequent influx of fans caused a spike in spending, particularly in the hospitality sector.
The staggering 9.7% inflation rate in May was slightly higher than economists anticipated. Grahn credits this “upside surprise” largely to the beaming Beyoncé and her entourage of international fans.
And here’s a kicker: CNN reported that though stars grace Sweden with their presence pretty often, the effect that Beyoncé had on the economy was something extraordinary. But, of course, it’s Queen Bey we’re talking about! Her net worth is over $500 million according to the most recent estimates. Are we surprised?
The beyhive
BuzzFeed News disclosed that several Beyoncé fans from the U.S. hopped on planes to Sweden just to catch her live. Why? The ticket prices were a steal compared to what they would have to shell out stateside. Floor tickets were available for a cool ninety-five bucks in Sweden, whereas in New York, fans would have to part with a hefty $823 or more.
It’s no wonder that Ticketmaster reported an overwhelming demand earlier this year, with some U.S. cities seeing an 800% excess in demand over the available seats. Sweden saw fans from all over the world, and due to the relatively weaker Swedish currency, these international fans had some extra spending power.
Ripple effect
While Beyoncé’s presence was the highlight, the wave of fans also took over hotels and restaurants. The prices in these establishments soared, and the demand was so high that even hotels situated thirty-one miles away from Stockholm hiked up their rates.
According to Grahn, the Beyoncé effect accounted for two-thirds of the price increases seen in the hospitality sector in May. Official stats show an annual consumer price inflation of 9.7% in May, which was actually an ease down from 10.5% in April. However, economists had predicted a sharper slowdown to 9.4%.
So, what’s next? As it turns out, this whole financial frenzy is expected to be short-lived. Economists expect that as hotel and ticket prices normalize in June, things will settle down.
Beyoncé vs. The Boss
Now, here’s a plot twist. Bruce Springsteen, aka The Boss, is scheduled to perform in Gothenburg, Sweden later this month. Will he manage to outshine Beyoncé’s economic magic? Grahn doesn’t seem to think so. He believes that what was witnessed with Beyoncé was something special.
We all know that when Queen Bey steps onto the stage, she owns it. But who knew that her royal highness could also make a kingdom’s economy dance to her tunes? It remains to be seen if any other star can recreate the Beyoncé Effect. So, who’s up next to challenge the Queen’s economic reign?
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