Prognosis
West Coast Shows the Damage Outbreak May Do to U.S. Businesses
- Downturn dents San Francisco as virus fears spur cancellations
- Cascade effect from drop in travel hits restaurants, hotels
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For a look at the potential economic fallout of the coronavirus, San Francisco’s Union Square presents a worrisome sight.
The district -- packed with pricey restaurants, luxury shops and gleaming hotels -- is usually a magnet for tourists and conference-goers. But with travel cooling and a string of conferences canceled in the last two weeks, some businesses are experiencing a sharp and sudden downturn. Shopper traffic is slow. Taxi drivers are sitting idle. Hotel demand is dwindling.
“It’s devastating,” said Anna Marie Presutti, general manager of the 533-room Hotel Nikko, which has seen its occupancy rate plunge from nearly 90% to just below 50%. “We’re experiencing what we experienced right after 9/11.”