The exclusive deal that Singaporean authorities reportedly struck with music artist Taylor Swift, though heavily criticized, may actually be a silver lining for many Filipinos.

Swift's immensely successful Eras Tour, on track to become the highest-grossing in history, has led to ticket websites crashing and millions of people waiting in virtual queues to secure seats.

In Southeast Asia, the pop star performed six sold-out shows, all in Singapore. It is rumored that this deal was arranged to prevent Swift from bringing the Eras Tour to other countries in the region, like the Philippines.

Economist and Albay Representative Joey Salceda criticized Singapore's actions, stating that they are not in line with the behavior expected of a good neighbor.

Salceda calculated that the exclusivity clause boosted industry revenues significantly and gave Singapore’s economy $60 million.

Although these additional economic activities may seem positive on the surface, they raise the question of whether they genuinely benefit host countries, especially those struggling with persistent inflation.

According to a report by FocusEconomics, the extensive Eras Tour, spanning over 150 shows across five continents for nearly two years, is exerting upward pressure on consumer prices.

In specific cities where Swift performs, FocusEconomics noted that hotels, flights, and restaurants are affected, complicating the inflation analysis for central banks as they consider potential rate adjustments.

In May, Portugal's statistical office reported a rise in prices from April, attributing it to a "major cultural event" in Lisbon— Swift's performances in the city on May 24 to 25.

Similarly, in May, Sweden reported an unexpected increase in core inflation, possibly influenced by the effects of three Taylor Swift concerts in the capital.

Economists at TD Economics now warned that Swift's upcoming tour dates in the United Kingdom in August could dissuade the Bank of England from implementing rate cuts in September.

Makings of An Empire

Some economists say such a performer’s impact on inflation cannot be underestimated, noting Swift's effect on multi-generations in years.

For starters, Swift’s Eras Tour earned $1.04 billion last year, with 4.35 million tickets sold across 60 tour dates, making it the first tour to cross the billion-dollar mark.

In the Singapore concert, standard ticket prices range from SGD108 to SGD348, while expensive tickets range from SGD 328 to SGD1,228. That's around P4,425 to P50,322.

This, is on top of having one of the biggest fanbases in the world and the most-streamed songs across various platforms.

In fact, the American performer was the country’s top artist on the streaming platform Spotify last 2022, while Quezon City was ranked fifth among cities that had more listeners from Swift.

The American artist also gave birth to the Philippines’ Taylor Sheesh, which later became a spectacle that gathered Swift fans in mall shows, who were most probably disappointed that the artist would skip the country on her world tour list.

But this did not hinder some Filipino fans who were eager to see the hit sensation as some spent hefty amounts of cash to go to Japan, Singapore, and even Australia just to hear the artist sing their favorite songs.

According to Klook, a travel and experience application, Filipinos were the top buyers of its ticket bundles for Taylor Swift’s the Eras Tour in Singapore, accounting for around 10 percent to 15 percent of the total bundles sold.

Swift-driven Inflation

With all these considered, can a huge global superstar spur inflation growth?

For Stockholm-based banking group Swedbank Makroanalys, it attributed the higher-than-expected 3.7 percent inflation rate in May to the effects of Swift and Eurovision final concerts, which also contributed 0.1 percentage point from car rental.

However, Swift is not the only performer who has shaken inflationary pressures in several countries.

Last year, Beyonce held a two-night concert in Stockholm, which drew a full house of 46,000 fans and led to a surge in demand for hotels and restaurants.

During the month, Sweden reported inflation of 9.7 percent that month, to which the heightened prices of accommodation and dining added between 0.2 and 0.3 percentage points, according to an economist at Danske Bank.

Some economists noted that while world tours’ impact may be considered a cultural phenomenon, its effects on the growth of prices are small compared to the annual output and demand of the market it enters such as hotels and restaurants.

In a country such as the Philippines, which holds the lower middle-income status since decades ago, the cost of having Taylor Swift may be a “Cruel Summer” to many underprivileged Filipinos.