Red Hot: The ‘Ed Effect’ warming up New Zealand’s economy
Tuesday, 20 January 2026
When Ed Sheeran touches down in New Zealand, it’s never just a concert.
It’s an event - and one that brings with it a perfectly timed boost to wallets, morale and midweek foot traffic.
After two jam-packed shows at Go Media Stadium over the weekend, Sheeran’s Loop Tour rolls into Wellington on Wednesday, before heading south to Christchurch for a double encore next weekend.
And while the 34-year-old British megastar might insist he’s just a guy with a guitar and a loop pedal, the numbers suggest otherwise.
Read more
The good, the bad, and the hungry: How is Wellington hospo faring?
How we keep our position as the arts, culture and events capital
In Auckland, the city moved to the beat of Sheeran’s arrival over the weekend, as fans flooded the streets and local businesses felt the boost.
Although exact figures were still being formalised, the Newmarket Business Association said retail spending in the precinct usually jumped by more than $1 million over concert weekends.
“Local retail is one of the biggest winners from major concerts,” association boss Mark Knoff-Thomas told The Post.
Any large-scale show sends shoppers spilling out of stadiums and straight into nearby hospitality and retail spots too: “The streets were busy, car parks were at capacity, and just the general vibe of the main strip and shopping centres was electric.”
And now it’s Wellington’s turn to feel the “Ed Effect”.
Sky Stadium is expecting more than 35,000 people for Wednesday night’s show, with more than 30% travelling from out of town ‒ music to the ears of a hospitality sector that’s felt the pinch over recent years.
Heidi Morton, Events and Experiences General Manager at WellingtonNZ, said similar-scale events had historically delivered between $3m and $5m in economic uplift for the capital.
“There’s absolutely an economic benefit for hotels, restaurants, bars. There are a lot of hospitality providers out there that are still suffering and any boost we can get is fantastic for the city.”
But it’s not just about the dollars.
According to research conducted by WellingtonNZ, more than 90% of Wellington residents say they feel proud their city hosts major events.
“Positivity drives positivity. It gives us a boost not only to people’s back pockets, but also to how people feel about their city. Wellington is an amazing place with amazing things happening all the time, and that’s something worth celebrating,” Morton said.
While January was often seen as a dead-zone for Wellington, recent events had proven that theory wrong.
“A lot of providers think Wellington cleans out over the holiday period, but we saw with the Maoli concert on January 8 that we can have some wonderful sell-out events during that time.”
Add a forecast of 23 degrees and sunshine, and fans are expected to linger longer, heading into town earlier and staying on in bars and clubs after the show.
Down on Wellington’s waterfront, Shed 22 bar is leaning all the way into the ginger enthusiasm.
Business manager Josephine Callaghan said Wednesday’s free “Ed at Shed” party ‒ complete with a Sheeran look-alike competition ‒ had already sold more than 100 tickets.
Callaghan was even hoping the real Sheeran might spot the giant poster of him on the balcony and wander in after the show.
Metlink is running additional trains and larger buses on key lines, with concert tickets doubling as free transport passes.
As OneNews reported, Sheeran’s stop in the capital has also driven a strong surge in hotel demand, with bookings up 36% for concert night compared to last year.
The tour then heads south to Christchurch.
With more than 50,000 fans expected across two nights, preparations are in full swing: staging is going up, turf protection is in place, and hundreds of casual staff are being brought in to keep the show running smoothly.
According to Caroline Harvie-Teare, chief executive of Venues Ōtautahi, Saturday’s show is only one of two shows across the whole tour that have sold out.
“We’ll have about 400 staff on Saturday, and 350 on Sunday. That doesn’t include all of our security staff and other third parties that help us deliver these kinds of events, so it’s a pretty big production.”
Conservatively, Harvie-Teare hoped the weekend would generate between $4m and $5m across the region.
“We procure all of our food locally, we employ locally, so the economic impact is broader than just visitation […] It also brings a sense of positivity and pride, and adds to our social fabric.”
With short-term accommodation bookings in the Garden City rivalling those for Electric Avenue, it’s clear the Loop Tour will bring more than just music.
Across all five of his shows, Sheeran is expected to perform to well over 200,000 Kiwis, early indications point to another record-setting run for the Brit.
*CORRECTION: Ed Sheeran played at Go Media Stadium in Penrose, not Mt Eden Park. (Amended January 20, 2026, 4.42pm)