Tourism drop alarms San Francisco businesses over July Fourth weekend

CBS News

3 days ago

San Francisco's tourism industry, a critical pillar of the city's economy, showed troubling signs over the July Fourth holiday weekend, traditionally one of the busiest times of the year. Business owners, particularly around major visitor hubs like Fisherman's Wharf and Union Square, reported a sharp decline in tourists compared to previous years.
Despite sunny weather and the return of pre-pandemic activities, many merchants said they were left waiting for crowds that never came.
"Today, we've seen a total of seven foreign tourists. Can you believe that? Just seven people," said Sam Sohal, CEO of City Sightseeing San Francisco, which operates the iconic red hop-on, hop-off double-decker tour buses.
Sohal said his ridership has shifted mostly to domestic visitors, but even that group is shrinking.
"This year so far, it's about 35% down," he said. "What was really shocking was June and a few days of July — the bottom has fallen basically. We're 50% down. We're a little bit worried. We can probably weather the Summer. But in the Wintertime, if this is the Summer, what's going to happen in the winter? That's what scares us more."
Nearby, Bob Partrite, Chief Operating Officer of Simco Restaurants, which runs five eateries and a coffee shop at Pier 39, echoed the concern. Although he described business in 2025 has been "solid," June was the exception where overall business saw a dip in customers.
"Adaptability and flexibility in our footprint is key to running a successful business," Partrite said. "We just have to be ready for whatever happens and be able to adjust. As business levels adjust, purchases have to adjust, scheduling might have to adjust."
Many in the tourism and hospitality sectors point to national politics as a contributing factor to the drop in foreign visitors, citing immigration policies and shifting perceptions of the U.S. abroad.
"The tariffs and also the immigration policies — trying to scrutinize everybody, even tourists, they go to their embassy to get a tourist visa," Sohal said, suggesting federal policies are discouraging international travel to the U.S.
That sentiment was echoed by a visiting couple from Germany, who traveled to San Francisco for a wedding but said the decision was met with hesitation.
"People did give us rare looks when we said we would go to the U.S.," said Kerem Akkaya. "Everyone in Europe was like, 'Oh, really, you want to go there now?'"
"We prepared more, for sure, making sure we had all of our documents ready. I think had we not had the wedding, we would have been probably not traveling to the U.S. right now," said Rozemaryjn Van Der Veen.
At Nick's Lighthouse, a seafood restaurant at Fisherman's Wharf, manager Grace Paik said the atmosphere simply doesn't feel like summer.
"It's a little sad. This is Fisherman's Wharf, and it's just not as lively as what it used to be," Paik said. "Even for me, I'm concerned about political things and what's going to happen in the future in our business."
Business owners had hoped that five years after the pandemic began, tourism levels would at least match — if not surpass — 2019 figures. But for some, the reality has fallen far short.
Sohal said he may have to dip into personal savings if the downturn continues.
"We would like Gov. Newsom to help us out with promoting tourism in California," he added, hoping state-level promotion might help offset the international slowdown.
While several business owners praised San Francisco's new mayor for improved street conditions and safety in key tourist areas, they emphasized that local leadership has limited power to counteract national trends.
For now, merchants say they are bracing for a tough winter and hoping the rest of summer brings more than sunshine.