Big tourism drivers such as the Clark County Fairgrounds and the Champions Center Expo have suspended hosting events until the middle of April.
In total, local events that have been cancelled due to coronavirus concerns were expected to bring in thousands of people into the area over the coming weeks and generate millions of dollars into the local economy, said Chris Schutte, the director of the Greater Springfield Convention and Visitors Bureau.
Many area colleges and universities have postponed or canceled graduation ceremonies in light of the coronavirus outbreak. Those institutions have also suspended in-classroom instruction and have moved towards online coursework for the time being.
National companies that either have facilities or are headquartered in the area have significantly reduced or barred business related travel as a precaution to help prevent the virus from spreading.
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“Obviously it is a pretty sobering situation in terms of what we are seeing now,” said Schutte.
He said due to the nature of the coronavirus as well as evolving preventive measures taken at both the national and state level, it is hard to gauge what overall economic impact it will have for the rest of the year, especially in regards to local tourism.
So far, major events slated for the area have been cancelled into April. However, if that trend continues into the coming months, it could mean the potential loss of thousands if not millions of more dollars in regards to the economic impact of local tourism. That includes hotel stays, restaurant orders, retail sales and other costs associated with travel, Schutte said.
Previously, there had been an upward trend over the past five years in local tourism-related revenue. That includes visits made into the area due to local events, family members visiting college students and business trips, said Schutte.
Between 2014 and 2017 alone, the economic impact of tourism in the county increased annually from $316 million to $417 million, he added. Though that data has yet to be released for 2018 and 2019, Schutte said he anticipates that impact to have continued to increase during those years.
Current predictions show a 31% decline nationally in the travel industry for 2020 and a 75% drop in overall revenue over the next two months and for continued losses for the rest of the year to reach $355 billion, according to the company Tourism Economics.
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Schutte said if that is true, it will certainly have a trickle down effect on the local level. So far, the Clark County Fairgrounds has cancelled approximately 25 events that were slated for this month and the first half of April, according to Dean Blair, the executive director of the fairgrounds. The Champions Center has cancelled four events, including a large horse show, according to its Executive Director Dave Halverson.
Halverson said cancelling those four events alone has created a loss of $134,000 in direct income for the expo center. He said they host on average 54 events per year.
In addition, it means fewer people are travelling to the county and staying at hotels. That impact will be seen in lodging tax revenue for this year.
In comparison, roughly $1.1 million was generated in Clark County last year from lodging taxes. That year also saw an increase in the total occupancy rate for hotels in the area, with the average weekend occupancy rate being 74% and the weekday one being 64%, according to data provided by the Greater Springfield Convention and Visitors Bureau.
Schutte said hotel stays booked over the weekends tend to be by tourist coming into the county for a variety of different reasons, especially for specific events. He added that weekday stays tend to be mostly related to business travel.
Starting last week, local companies have started to implement several precautions in regards to the coronavirus. That includes having employees work remotely if possible, relying more on conference calls and virtual communication rather than in-person meetings, postponing events and limiting business travel, said Horton Hobbs, vice president of economic development for the Chamber of Greater Springfield.
In the meantime, Schutte said his organization is urging local tourism partners to investigate all economic disaster programs available. He added that local tourism could sustain a substantial loss should restrictions, both statewide and locally, implemented in order to combat the spread of coronavirus continue on in the following months.
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DeWine recently ordered a vast array of businesses across the state to either close or scale back operations to slow the outbreak, including bars, restaurants, gyms, theaters, recreation centers, bowling alleys and water parks.
Schutte encouraged residents to continue to support those establishments that are still offering carryout, curbside pickup and delivery options to customers.
It was announced this week that Ohio has been qualified by the U.S. Small Business Administration for the Economic Injury Disaster Loan Program. That allows businesses as well as nonprofits that have been economically impacted by the coronavirus pandemic to apply for a low-interest loan of up to $2 million in order to help pay for fixed debts, payroll and other bills that currently cannot be paid due to the pandemic.
Businesses and nonprofits can apply for the loan online at disasterloan.sba.gov or by calling 1-800-659-2955 to have the application mailed.
The Clark County Department of Jobs and Family Services is also asking those who are temporarily out of work due to the coronavirus pandemic to apply for unemployment benefits by phone or online.
Those who have lost work because of the COVID-19 emergency, also known as coronavirus, can apply online for benefits at unemployment.ohio.gov or by calling 1-877-644-6562.
By the numbers:
$1.1 million: Amount of revenue generated in Clark County in 2019 from lodging taxes
74%: Average weekend occupancy rate for hotels in Clark County during 2019
31%: Projected decline on a national level for the travel industry in 2020
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