San Francisco tourism continues to inch toward pre-pandemic levels
San Francisco continues to see its tourism industry rebound, which is good news for local businesses, but it will still be a few years until it reaches pre-pandemic levels.
Don McFarland started working in the heart of Fisherman's Wharf when he was 15 years old. It's a family business that's been around since 1927.
"That's Frank Sabella and Lou La Torre. The founding partners, grandpa and cousin," said McFarland.
Sabella and La Torre survived COVID restrictions, but the post-pandemic rebound has been slow. He's the owner, runner, bartender, and whatever role needs to be filled.
"They would be proud but would say get your hands out of your pockets and make a sale," said McFarland.
The 53-year-old said for the first time in 18 months, his restaurant finally saw a noticeable uptick.
"June was very good, and July looks so far to be on pace to be better than the year before," said McFarland.
Tourism officials have been touting the rebound San Francisco has seen recently and what seems to be a promising projection of spending levels for the next couple years.
The San Francisco Travel Association projects visitors will spend nearly $9.45 billion this year, a 7.4 % increase from 2023, but visitor volume won't reach the 2019 mark of 26 million until 2026.
"I'm seeing more foreigners coming in from other countries which is a good sign. That means they're not scared to come here," said McFarland.
Anna Marie Presutti is interim President and CEO of the San Francisco Travel Association.
"The convention business is what's down significantly," said Presutti.
According to SF Travel Association, the 25 confirmed Moscone conventions this year is half the number of events compared to 2019, translating to less than half of hotel rooms booked in San Francisco.
"Now, we're sitting in that 50-60% occupancy mark and the rates are significantly lower so the flow that's going through the city and into the general fund is diminished as well," said Presutti.
Economists also said, with a strong dollar, more Americans are traveling abroad, meaning the overall picture for tourism in the U.S. isn't as rosy.
A study from Euromonitor International finds the U.S. is trailing its global competitor, ranking 2nd to last among 18 nations, with the United Kingdom and France among the top and China's travel industry ranked last.
Paulo Perla is a tour guide based in Los Angeles, who said revenue is down from last year.
"European tourism is much less," said Perla.
Olaf Schubert and his family are visiting San Francisco from Germany, and believes it is safer to travel here than to many other cities and countries they could have opted for.
"This is our second time here. It's a very nice town," said Schubert.
That vibe makes vendors like McFarland cautiously optimistic for this summer and beyond.
"It would be good for small businesses to feel like they're legitimate again and make a profit," said McFarland.
It's a reason to smile.
But for an optimist like Don McFarland, it's not just the bottom line that has kept his family restaurant thriving for nearly a century and counting, it's grit, kindness, and loyalty that's setting the bar, the way his ancestors dreamed.
The SF Travel Association said the diminished impact of meetings and conventions is the direct impact of being unable to sell Moscone Center for two years during the pandemic.