$1.1 billion in valley business jeopardized after coronavirus cancels major events
As a growing number of events are canceled in the valley amid coronavirus concerns, a toll is being taken on the valley's economy.
With hundreds of millions of dollars at stake, small business owners are already feeling the hit. Some are just hoping they can make it through the summer.
"From a small business standpoint, we’ve taken a tremendous hit," said Willie Rhine, co-owner of 849 Restaurant and Lounge in Palm Springs. He said he's lost most of his large group reservations and offsite catering events for March and April.
Rhine said the restaurant's losses are nearing $200,000 so far.
"March would normally be one of our busiest months and it's turning out to be one of the slowest," he said.
With coronavirus concerns pulling the plug on the BNP Paribas Open and postponing Coachella and Stagecoach until October, Joshua Bonner with the Coachella Valley Economic Partnership said it deals a huge blow to the local economy.
The BNP brings in about $400 million to valley businesses, and festival season draws another $700 million.
Losing those events jeopardizes more than $1 billion that businesses like 849 depend on — just before the summer slowdown.
"At the moment, it feels like summer is arriving early, which is scary," Rhine said.
Palm Springs Mayor Geoff Kors spoke by phone with the White House Wednesday about the coronavirus crisis. He's keeping a close eye on Palm Springs' cash flow.
The city's T.O.T., or Transient Occupancy Tax, typically brings in more than $5 million in April alone.
"That is likely going to change," Kors said.
And while he said the city has plenty of money in its reserve, small businesses are hoping they'll have enough to stay afloat.
"That would be a tremendous, tremendous loss to every business owner in Palm Springs if people stop going out," Rhine said.
Adding to the concern, VillageFest Thursday night is canceled, due both to weather and coronavirus concerns. The city is also awaiting further direction on other large scale public events.
You can reach Jake on Twitter, Facebook or email him at jake.ingrassia@kesq.com.
