Fans stand for the national anthem before a Toronto Blue Jays game during the World Series in October. Ontario saw entertainment spending jump during the Blue Jays’ playoff run.Sammy Kogan/The Globe and Mail
In a challenging year for the economy, many Canadians are looking to cut back on discretionary purchases. But one area seems particularly immune to their penny-pinching efforts: entertainment.
This October, Royal Bank of Canada cardholders spent 204 per cent more on arts and entertainment than they did in early 2018, according to transaction data reported by the bank. Entertainment appears to be a priority in personal budgets: Over the same period, spending on dining has risen by a lesser 92 per cent and clothing by 36 per cent.
Consumer spending on entertainment – everything from concerts to sporting events – accelerated over 2022 and 2023 as pandemic restrictions were eased. But the RBC data suggest the trend isn’t slowing.
For instance, Ontario saw spending in this category jump during the Toronto Blue Jays’ playoff run.
“Entertainment and art spending did take off in Ontario in a big way in October,” says RBC economist Rachel Battaglia.
As the economy reopened after pandemic restrictions were lifted, many Canadians eagerly returned to live events, Ms. Battaglia says, fuelling what she calls “revenge spending.” Concerts, performances or pro sports that were paused or restricted for two years quickly filled large venues.
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For younger Canadians, such as Genevieve D’Souza, a 26-year-old content creator, splurging on arts and entertainment is a way to reclaim time and social connections that were lost when the pandemic hit.
“During COVID-19, there was a lack of events and big spaces for people to gather,” she says. “That’s why, now more than ever, I just want to be out of the house, meet more people, make more friends and spend money doing that.”
According to the most recent data from Statistics Canada, households spent an average of $5,231 on recreation in 2023, up nearly 24 per cent from 2021 after an 8.7-per-cent decline over the first two years of the pandemic. The increase was driven by a jump of more than 120 per cent in spending on recreational services such as movie theatres, live sports, performing arts and package trips.
Operating revenue for spectator sports, event promoters, artists and related industries rose 12.8 per cent from 2022 to reach a record high of $12.7-billion in 2023, highlighting Canadians’ appetite for in-person events.
Ms. D’Souza says frequent concert-going has made it easy to lose track of spending. Small $50 purchases here or there quickly add up. Still, she says she has no regrets and has never felt an experience was a waste of money.
She recently spent about $160 on concert tickets to see British DJ Fred Again, while VIP passes to festivals such as Osheaga have cost her $500 to $600. She’s also planning a trip with friends to Belgium next year for Tomorrowland, an annual music festival, which she says will run well over $1,000, not including flights.
Festival-goers at the annual Tomorrowland music festival in Boom, Belgium, in 2019. Ms. D’Souza says frequent concerts makes it easy to lose track of spending.DAVID PINTENS/AFP/Getty Images
While some consumers spend on experiences to enjoy their youth and create lasting memories, others, such as 23-year-old Khaleda Khan, splurge as a way to cope with uncertainty about the future.
After being unexpectedly laid off following time in the hospital, Ms. Khan describes feeling a sense of “doomerism” that made spending on concerts, film festivals and craft workshops a way to reclaim control and tap into creative outlets that brought her both joy and distraction.
She defines “doomerism” as a sense of helplessness, where nothing feels within your control and everything appears to be getting worse. For Gen Zs, the struggle to secure a job and navigate the housing crisis can take a heavy toll on mental health, research shows.
But planning a day around a concert, workshop or live event gives Ms. Khan a healthy escape, helping her manage stress, recharge emotionally and maintain a sense of community.
“I find myself splurging on these sessions because I think they’re worth it, even if they’re expensive,” she says.
RBC’s cardholders are continuing to ramp up their entertainment spending, despite challenges posed by the U.S. trade war.
While the bank declined to offer specifics of what is driving up that consumption, outside of the recent Blue Jays run, Ms. Battaglia says online gambling is part of the category, and rules around sports betting have eased in recent years.
Ms. D’Souza says there are limits to her spending. While long-term financial goals such as home ownership may feel out of reach, she says it’s important to find a balance between enjoyment and saving money.
“Not all experiences are worth going broke over,” she says.