Opinion | Can downtown San Francisco emerge from its slump before the Apec summit?
- The work-from-home trend and tourist downturn during the pandemic fuelled business closures, exacerbating urban decay in an area already struggling with crime and homelessness
- The mayor has plans to revitalise the once-prestigious district and, hopefully, progress can be seen before the city hosts world leaders for the Apec summit in November
As someone with many close friends in the United States, particularly in the state of California, I am saddened by recent media reports of the deterioration of San Francisco’s once-prestigious downtown district. I have a personal interest in the area and have maintained a home there for many years. Before pursuing my career in Hong Kong, I completed university in Los Angeles county and before that I attended high school in Pennsylvania. I have also remained closely involved with my alma mater.
It seems the problems in downtown San Francisco were exacerbated by factors that combined to create a perfect storm. The catalyst was the Covid-19 pandemic. Lockdowns, social-distancing measures and work-from-home policies kept people away, forcing many businesses to close or dramatically reduce their operations.
Their sustained absence from the area has hindered its recovery and fuelled an escalation in office and retail vacancies, while poor transport infrastructure has resulted in serious traffic congestion, as residents opt to use their cars rather than take public transport, making the area even more unpleasant. A sluggish tourist market has also compounded the problems.
The impact on the area’s hotels, restaurants and other businesses that rely on pedestrian traffic and tourism has been immense. The recent announcement by Park Hotels and Resorts that it has stopped making mortgage repayments on its Hilton San Francisco Union Square and Parc 55 San Francisco – in effect pulling out of the two hotels – is a major blow and a reflection of a lack of confidence in the tourism sector. Combined, the properties account for almost 3,000 rooms.
