Ariana Grande’s sold-out London residency is set to generate between £65 million and £78 million for the capital’s economy, with up to 200,000 fans expected to attend her ten-night run at The O2 this summer.
New analysis from Novuna Personal Finance estimates that concertgoers could spend up to £78 million with London businesses during the residency, delivering a significant boost to hotels, restaurants, bars, retailers and transport providers at a time when many businesses continue to face challenging trading conditions.
The shows are set to be among the final dates of Ariana Grande’s current tour, bringing thousands of fans into London across more than two weeks. Latest reports state the tour will come to London for a 10-night residency at The O2, with the final show on 1 September also marking the end of the tour.
On average, each concert is forecast to generate between £6.5 million and £7.8 million in visitor spending across the capital.
Theresa Lindsay, Chief Marketing Officer at Novuna Personal Finance, said:
“Live music continues to hold huge value for people, even when household budgets are under pressure. For many fans, seeing Ariana Grande at The O2 will be an experience they have planned and saved for, with the concert often becoming part of a wider experience, including meals out, drinks, shopping and overnight stays.
“With retailers and the hospitality sector still facing challenging trading conditions, the arrival of up to 200,000 visitors provides a vital boost for London’s economy. It’s a powerful reminder of the importance of live events, they don’t just fill arenas, they help drive spending across the wider economy.”
According to the analysis, the average fan is expected to spend between £325 and £389 in London, excluding tickets and merchandise, as thousands travel from across the UK and overseas to experience one of the year’s biggest live music events.
Where fans are expected to spend
Category
Conservative estimated spend
Upper estimated spend
Food & drink
£18m
£22m
Accommodation
£19m
£24m
Shopping & leisure
£11m
£14m
Travel
£17m
£18m
Total visitor economy spend
£65m
£78m
Blended spend per attendee
£325
£389
Average spend figures are blended estimates across all attendees. They do not assume every fan spends in every category. Local fans are expected to spend less, while higher spending is likely to be driven by fans travelling into London, staying overnight or extending their stay.
Music tourism drives spending across London
The analysis suggests accommodation will account for the largest share of visitor spending, with fans expected to spend between £19 million and £24 million on hotels and other overnight stays. Spending on food, drink, shopping and leisure activities is projected to total between £29 million and £36 million.
With attendees expected to travel from across the UK and overseas, businesses in Greenwich, central London and around major transport hubs are likely to benefit from increased visitor footfall throughout the two-week residency.
Unlike a one-off stadium show or festival weekend, Ariana Grande’s ten-night residency will spread visitor spending across more than two weeks, creating sustained demand for businesses across the capital during the late-summer period.