Scottsdale is "Resilient" After COVID-19

Scottsdale is considered to be one of the top markets for business performance, job
growth, livability and friendly culture; however, Scottsdale took a big hit during the pandemic with one in six businesses forced to close. Now city officials and many business owners say Scottsdale is back but post-pandemic challenges exist when it comes to staffing.

Scottsdale’s Tourism Department reports Scottsdale as Arizona’s 10th largest city and
highlights the city's “ business performance, job growth, livability and friendly culture.” It is well known for its lively night scene with restaurants, bars, clubs and annual festivities. All of these activities give way to Scottsdale's successful and colorful business industry; despite Scottsdale once again being lively, reports show that the vibrant city looked very different in the Spring of 2020 and has made a remarkable recovery.

The Tourism and Event Department of Scottsdale estimates that the city sees about 11 million tourists annually and employs 27,000 people.. Annually, this generates a $3.3 billion economic impact to the city and visitors generate $38 million of annual tax revenue.

“Visitors generate more than $38 million of annual tax revenue— representing about one
in every five city sales tax dollars,” recently reported the Tourism and Events Department.

After an international pandemic, many businesses are still making their recovery. The
Tourism Department Reports that lodging for tourists in Scottsdale is typically upwards of 71% occupancy and in April of 2020 lodging dropped to 7%.

The COVID-19 pandemic began in January 2020 and the John Hopkins Research
Center reports that 6.62 million deaths have resulted from COVID-19. As a result of the
pandemic, people minimized traveling to avoid the deadly illness and to slow its spread.

The City of Scottsdale reports that as of April 2020 lodging occupancy rates dropped to
8% and never exceeded 40% occupancy for the year 2020.

Stephanie Pressler, director of community affairs for Experience Scottsdale, a nonprofit
company that works with the City of Scottsdale to conduct destination marketing efforts on behalf of these municipalities, estimates that 45 bars in the Scottsdale area were closed due to a lack of business. Overall, she estimates that one in six businesses closed during the year 2020.

Despite the struggles that Scottsdale has faced over the past two years, Scottsdale is now seeing many of the same statistics that were prior to the pandemic, such as a 71% occupancy rate and it seems business in the city is making a recovery.

“Tourism is an extremely resilient industry… Experience Scottsdale kept potential visitors, both near and far, inspired about Scottsdale,” said Pressler.

When asked about what Scottsdale events Pressler is excited to see return this year she noted that Experience Scottsdale and the city of Scottsdale are positioning January through March as “Scottsdale Super Season.”

“We are excited about the months ahead as we expect to welcome millions of visitors to Scottsdale for special events, especially when the Super Bowl and WM Phoenix coincide in February,” said Pressler.

While events in Scottsdale have returned to normal and Scottsdale’s holiday events are being celebrated many restaurants are returning to their former glory and in high demand.

Cole Hammer, General Manager at The Greene House says he has seen business return to
what it once was, to the point that he is experiencing understaffing in his restaurant and the restaurant is already booked out the week of the Superbowl.

“We seat about 300 guests every night at the restaurant which is what we expect during this time of year…we have welcomed several new servers and hosts onto our team within the past few weeks to adjust to the change in business,” says Hammer

When asked about staffing during COVID Hammer acknowledged that The Greene House did experience a reduction in staffing because of business being slow but business is back to “normal,” and continuing to pick up.

“Business was sometimes difficult towards the beginning of the pandemic… many people only felt comfortable sitting on the patio and some still prefer it… The restaurant is already booked out during the week of the Superbowl, Feb. 4-10,” said Hammer.

Assistant Manager of The Greene House, Shanna Westritch, also mentioned that the restaurant is not only booked out during the week of the Superbowl but it is also booked out during weekdays and they are having excessive wait times.

“It’s exciting to see business return to what it once was and I’m enjoying watching our team rise to the challenge… I would recommend making reservations at popular locations in Scottsdale several weeks in advance now that we are seeing business pick up. On Wednesday night we are booking out and sometimes having wait times up to three hours and so are other restaurants in the area,” said Westritch.

While Scottsdale events and businesses have returned to what they were “pre-pandemic” Pressler insists that Tourism and Hospitality are at the heart of Scottsdale’s recovery and unique community.

“Scottsdale’s streets were quiet, but the spirit of hospitality remained as local businesses raised funds for furloughed employees, donated care packages to frontline workers, and provided entertainment to residents through reimagined events and amenities – from takeout cocktails to drive-in movies,” insisted Pressler.

The most recent census also suggests that not only did tourist rates drop during the pandemic, along with businesses overall but even the local population dropped during the rise of the pandemic.

Census Bureau’s data reports say that in 2020 the local population dropped from 255,000 to 243,000 residents. The Census not only suggests that not only have more people traveled to Scottsdale during the past year but people are also moving there. In 2021 Scottsdale’s population was at 243,800 people, it now rests at approximately 246,100 people and is continuing to grow.

The Census Bureau also reported that as of March 2022, Scottsdale's local economy
gained jobs. The report also detailed that the national unemployment rate is now 3.6%,
which rested at 14.7% during the peak of the COVID-19 pandemic.

During the spring of 2020, Scottsdale saw a decrease in population, events, tourists, overall business and an increase in unemployment as a result of an international pandemic. In the
past year Scottsdale has made a recovery as tourists rates have once again increased, the local
population is on the rise, businesses such as restaurants are seeing more guests and loved annual
events have returned. Community Affairs Director, Stephanie Pressler, has even called the city
“resilient” during its recovery and local businesses are “excited” to rise to the challenge.”