May 14 to May 20, 2020
SURVIVING COVID19 continued from page 3
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“At a county level, there is going to be a $100 million deficit in 2020/21 .” to the CV for a conference? Loss of group travel will likely have a long-term impact as opposed to leisure travel. But for ‘leisure centric’ travel to resume, it must feel safe. It is going to be a long process.” White is thinking about the future of the tourism and hospitality industry, and how he and his organization can be a resource and advocate for the valley’s businesses. “We try to stay involved and be apart of the conversation,” said White. “The CV does not attract business travel because our area does not have a diverse enough economy.” The valley is primarily dependent on leisure and group travel. “We are all trying to help each other and make sure we are in this together,” said White. “Travelers must feel safe with whomever they are interacting. Whether it’s a hotel, restaurant or retail store.” CVB is committed to a regional pledge getting all the businesses aligned and putting in place guiding principles that can be used as a source for all valley businesses. “We post protocols from area businesses on our website so consumers can know what a particular business has in place in terms of their safety,” said White. “We want to communicate to the traveler that the valley has a commitment to their health and safety. Everyone will do it a little differently and protocols will vary, but that’s okay as long as they are following the guidelines. It may create a dynamic level of competition that we haven’t seen before as businesses reach out for visitors.” White has seen projections that valley tourism will loose 56 percent, over 25,000 jobs this year. The difficult part is how to bring employees back and reintegrate as leisure and group travel begins to resume. While the Coachella Valley is playing by the Governor’s rules, some coastal cities have been taking leisure guests. While their season is just beginning, the CV was forced to shut down during the peak months of March and April. “We’re here to advise hotels with the rules and mandates and the potential risk they are taking if they open too soon,” said White. “Our status has always been the sooner that we adhere to all of the mandates, we flatten the curve, we reduce the number of cases, the sooner we are going to get reopened. We want to make sure that our actions don’t increase Covid cases. Which would delay openings.” White hopes the valley will be at a point where it can allow large gatherings and the festivals can operate even if it’s not at full capacity. Under the Governor’s guidelines all stages have to be met. Phase Four allows for large gatherings. (see inset)
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“That would be Christmas for the industry if we could get back to gatherings and large groups. But it is too soon to tell,” said White. “If large events can provide an environment where people feel safe, and the government and hospitals systems are comfortable with it as well, then that would be great.” White points out that it’s not just the visitors who have to feel safe and comfortable but also the valley’s residents and workforce. “People have to get use to visitors navigating through our communities,” said White. “We all have to be safe and respectful of one another. Over the next few months it will be about finding the balance of the visitors comfort level, and more importantly, that residents feel comfortable and safe.” White and his organization will be advocating for a 30 to 40 percent hotel and resort occupancy in a phased approach. “Employees need to be trained and procedures implemented,” said White. “There are a lot of variables that need to be developed so that we can open effectively. It’s going to take all summer to get there.” White would have preferred the pandemic hit in June and July to allow the industry to finish its lucrative season. Meanwhile, CVB waits to see what happens. “With this pandemic shutting the industry down, there is a lot that needs to happen before we reopen our hotels,” said White. “We have to make sure employees have protective gear and the materials they need to stay safe and healthy. There are quite a few barriers before we can open successfully.” Even when the tourism and hospitality industry resumes, White believes it is not going to be the same. “It’ll be awhile before we get to the same numbers,” said White. “People will be cautious. I don’t see that the same level of travel is going to take place. A smaller percentage of people will be traveling. I don’t see us back where we were in fall 2019. The landscape will look more like it did post recession and continue for the next 18 months or two years.” Some CVB research has indicated that one third of travelers said, they are not going to travel until 2021; another third said, they would take shorter trips where they feel safe; and the last third said, it is not a big deal especially if they can take advantage of the cost savings and reduced crowds. “This is a very resilient destination,” said White. “We have to collaborate and be unified as one destination. We talk about the CV as nine cities -- one oasis. We are of the mindset -- one large city with nine different neighborhoods where each has its own personality and identity. When it comes to something like this we
have to find a way to work together so we are all safer. I believe we will succeed but no one knows how long it will take. The last thing we want to have happen is the virus boomerangs and we go back to where we were in March -- or worse. It’s important that we have a plan, it may be slower than people like, but it’s out of our hands. Hopefully we can get to where there is one voice, one direction, and we all work hard to get there.” JOBS & UNEMPLOYMENT CVEP’s numbers for the valley’s unemployment rate prior to the Corona virus was 7.2 percent. This May, Wallace believes it will be over 40 percent. “To see such devastating impacts on employment is disconcerting,” said Wallace. “We could see the closure of 4,752 businesses as a result of this crisis. Because many businesses serve the tourism industry, it is not unreasonable to expect the casualty rate among small business to be higher than the state, national and international estimates.” CVEP projects that the top three largest occupations will suffer the greatest. Sales and Sales-Related, Food Preparation and Serving-Related, and Personal Care and Service make up much of the CV’s workforce. The economic partnership estimates a total of 33,860 or 63 percent of jobs will be lost. The report notes that these top three business sectors are also the three lowest paying jobs. Although 1 in 4 jobs is directly hospitality related, about 50 percent of all valley jobs rely to the industry. “The most vulnerable members of society are bearing the highest burden of job losses,” said Wallace. “The ‘timing’ of the Covid-19 crisis has been lethal. Businesses with high concentrations of jobs in tourism, hospitality and food have missed their busiest season, effectively creating six months of summer for Coachella Valley businesses.” DESERT HOT SPRINGS Desert Hot Springs Mayor, Scott Matas, is proud that the residents have been so diligent in following the stay at home orders. The city has suffered no deaths to the virus. There are 50 Covid cases. “Kudos to the community,” said Matas. “They have taken the pandemic seriously and it’s helped. Even though it’s difficult right now, people seem to be getting through it. We have residents who are essential workers and still working, but a lot of the workforce is in retail and hospitality. Maybe 20 percent are unemployed. We won’t know the exact figures until later this year.” Considered a bedroom community, Desert Hot Spring is geographically surrounded by undeveloped desert. Eighty-nine percent of working residents commute to other CV
Scott Matas
Mayor of Desert Hot Springs
cities. Cannabis is considered essential business and has helped with employment and keeping the city afloat, but according to Matas, it will be another three to four years before it’s built out and becomes the city’s main industry and top revenue source. Fortunately, the new city hall and the street improvement projects underway were funded years ago. “We have to consider changes to our budget for the next fiscal year,” said Matas. “We put city hiring on hold, but there’s not a lot we can do. We put together a task force and want to get to Phase Three as quickly as possible. Otherwise we may lose businesses. We have to be careful how we move forward, because we can’t put ourselves in a position where we could lose future county funding.” Phase Two is a challenge for the city, but it has allowed some businesses to open. Government leaders make changes and announcements everyday and they do not always align. It is taking cities time to sort out the information coming from both the County and Governor. “The biggest worry for all the politicians besides the economy crashing is the health of our communities,” said Matas. “The county and cities survive on the valley’s economics, so if the virus comes back in December like some have predicted, we could lose more people and businesses. Last week, the city’s senior center, Rotary Club and the CV’s food bank delivered 520 meals to families and shut-ins. I worry about our economy getting back on track, but the health of our community is a priority.” THE COUNTY OF RIVERSIDE Riverside County follows Los Angeles County with the second largest number of coronavirus cases 5,248, 185 hospitalized and 225 deaths. The county has tested 75,069. It is over 7,000 square miles. It spans from Orange County to the Arizona border. The population is 2,440,124 with 28 incorporated cities. V. Manual Perez, Chairperson, Riverside County Board of Supervisors, represents the fourth district, which begins at the west end of the Coachella Valley and extends across California’s desert, covering 5,000 square miles. Most valley mayors are in favor of “regional variances” as the county’s west and east regions have such different communities and economies. The county received $436 million from the Federal government to deal with the public health crisis. “We need to make sure we suppress and fight against the pandemic,” said Perez. “It is still among us and continues to be. We strongly recommend that we all continue
V. Manuel Perez
Chairperson, Riverside County Board of Supervisors
