Whether you’re a fan of Taylor Swift or not, there is no denying the impact her Eras Tour has had on local economies across the globe. Set to become the biggest music tour of all time, Taylor is due to arrive in Edinburgh this June to play three dates at Murrayfield Stadium. With a capacity of over 67,000, it is likely to result in an influx of visitors to Scotland’s capital city.
We know ‘all too well’ how popular Edinburgh is as a destination. With Savills naming it as the highest performing hotel market outside of London, Revenue per Available Room (RevPAR) reached £121 by the end of 2023 according to Smith Travel Research (STR). With this in mind will we see a boost to figures, or will it be a ‘cruel summer’?
Where to stay?
Edinburgh is known for some of the country’s most luxurious and historic hotels, including the Waldorf Astoria – The Caledonian and The Balmoral. There have also been a number of new openings including the W Hotel at the St James Quarter, as well as more to come including Red Carnation at 100 Princes Street and the Hoxton.
Visitors aside, the Scottish hotel market has attracted some serious investment, with transaction volumes reaching £310 million last year, up 98% on 2022’s figure. Overall, the country accounted for circa 14% of all UK hotel deals last year, due largely to its enduring appeal. In short, a true ‘love story’ for investors.
What can we expect the impact to be?
According to Time Magazine, Already the north American leg of the Eras tour has grossed $2.2 billion in ticket sales alone, and is projected to generate close to $5 billion in US consumer spending. In fact, the magazine states that if Taylor Swift were an economy, she’d be bigger than as many as 50 countries worldwide.
CNBC, citing Bernstein data, stated that the average RevPAR in cities where the tour landed increased more than 4% over the national average and increased more than 7% when compared with year-on-year revenue. The additional money came not only from higher-priced rooms when Swift was in town, but also due to increased bookings on the night she was performing. In Nashville, for instance, occupancy rose by up to 30%.
Already in Edinburgh luxury doesn’t come cheap, with average room rates across this segment reaching a record high of £382 in the peak of summer last year. So, will 2024 be beyond the city’s ‘wildest dreams?’. Not quite, it is unlikely to surpass this figure, but we will see market performance stabilise, no doubt helped by key events such as the Eras tour and the Fringe Festival, which welcomes just under a quarter of a million people each year.
What next?
There are already a number of hotel redevelopment projects taking place along Princes Street and St Andrew Square that will add to Edinburgh’s already impressive existing offer. Also there are further plans to enhance the city’s appeal by increasing its capacity with a proposed new music arena with the ability to fit up to 8,500 people at Edinburgh Park. A boost to culture, leisure and night life will be key to maintaining its popularity.
Ultimately, once the Eras tour is over it is unlikely to leave a ‘blank space’ in Edinburgh’s visitor numbers, but it will no doubt provide a welcome boost.
Further information
Contact Ryan Kirkland
