Small business owners hold onto hope as New Orleans tourism faces dire outlook

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New Orleans tourism faces dire scenario

Although New Orleans has seen the curve flatten in their area, the once named epicenter of the coronavirus pandemic is still feeling the economic aftermath. Small business owner, Rheannon Serino talks to Fox News about what business and tourism have been like in the Big Easy since stay-at-home mandates were lifted in the French Quarter.

New Orleans was once named an epicenter of the coronavirus pandemic but has since seen a steady decline in the number of new cases purportedly due to a growing number of tests and a steady drop in hospitalizations.

Yet even though the news is looking up in the Big Easy, residents and business owners are still hesitant to venture back into the previously buoyant and bustling city.

“It went from just the constant flow of people in our store, on the streets, music vendors everywhere, street vendors to a complete ghost town. The French Quarter was completely shut down,” Rheannon Serino, an owner of two retail shops in New Orleans, told Fox News.

When stay-at-home mandates were announced in Louisiana, Serino was forced to close the doors at her two locations in New Orleans--the Nola Rock Co. on Royal Street and a second on Decatur street, both prime tourist spots in the French Quarter.

“I always thought the worst thing that could possibly happen down here was another Hurricane Katrina. Pandemic never crossed my mind,” Serino said.

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Louisiana Gov. John Bel Edwards announced the state would move to Phase 1 of reopening on May 15 and lifted the stay-at-home order, allowing additional businesses to open under strict occupancy and social distancing guidelines.

Yet many business owners like Serino are hesitant to fully reopen, saying it’s still too soon to bring customers in safely and operate at 25 percent capacity.

“The local residents that I've spoken with, they seem pretty cautious still. They're a little hesitant to go dine at a restaurant or come shop with us,” Serino said.

Serino and her husband Michael opened up one of their locations over the Memorial Day weekend, hoping to see some sign of a tourism comeback with the holiday, but were met with dismal sales and foot traffic.

“It was very slow… it was probably at 10 percent of what it usually is,” she said.

Some reports estimated that New Orleans will lose nearly $1 billion in tourism revenue due to the cancellations of popular events like Jazz Fest and French Quarter Fest.

Nola Rock Co. is a jewelry and home décor store showcasing semi-precious stones. Being located in the landmark French Quarter, the store’s bottom lines depend on tourist dollars.

“I'm really not expecting tourism to pick up again until I'd say maybe September,” Serino said. “Until the French Quarter, hotels, restaurants, bars open at full capacity, I don't see tourism picking up again.”

Although Serino was able to receive the Paycheck Protection Program (PPP) loan to help keep her business afloat during the pandemic, she said they are uncertain if they will qualify for full loan forgiveness under the current rule that requires PPP borrowers to spend at least 75 percent of the funds on payroll costs.

“We’re unsure at this point if it's actually beneficial towards us because right now our employees with the enhanced employment benefits are actually earning a little bit more than they were working for us,” Serino explained. “So getting them to come back I see as a challenge. And I know that business owners should be reporting employees who don't come back and [say] they have a job, but we also don't want to have a resentful employee working for us.”

The House recently passed bipartisan legislation to give small businesses more flexibility with the loans they received during the coronavirus pandemic, and would eliminate the cumbersome 75 percent restriction and change it to 60 percent. The bill passed with a 417-1 vote and now heads to the Senate.

In a recent press conference, Gov. Edwards said his state has about 10,000 active cases of COVID-19 and that the number has been steady for about a month. He also said the number of hospitalizations in Louisiana is under 800, the lowest it's been in two months.

Although the sweet sounds of jazzy saxophone beats may not be wafting through the French Quarter these days, Serino is staying optimistic about the Saint City’s comeback.

“We moved to New Orleans to start a new life…And we had a dream to be our own bosses and that dream came true. So no matter what happens, we're not going to give up,” Serino said. “I don't know how near the future it will be, but tourism's going to come back and New Orleans is going to come back probably stronger than ever, as it always does.”