San Francisco’s Japantown has seen a remarkable economic resurgence, with sales tax revenue in the second quarter of this year rising 17% compared to the same period in 2019. This recovery stands in stark contrast to the challenges faced during the peak of the COVID-19 pandemic, when many shops were closed and empty storefronts dotted the area.
According to the San Francisco Standard, during the April to June period this year, only two neighborhoods in the city recorded an increase in sales tax: Japantown and Presidio. In contrast, the Tenderloin area experienced a staggering 68% drop in sales tax during the same timeframe.
While the exact reasons behind Japantown’s revitalization remain unclear, business owners point to factors ranging from community-friendly activities to a general sense of safety. Despite this optimism, there’s a lingering anxiety about how long this resurgence will last.
In comparison to the gloom and vacant spaces in other parts of San Francisco, Japantown is bustling with customers, a positive development for local business owners. The area’s convenient public transportation and its buffer against the drug-related issues that affect downtown contribute to its status as a popular destination for both locals and tourists.
The unique cultural history of Japantown, along with its retail shops and diverse Asian cuisine, serves as a significant draw. Foot traffic in the mall is steady, a stark contrast to the situation three years ago when the pandemic forced over ten shops to close due to unsustainable costs.
Susie Kagami, the Executive Director of the nonprofit Koho, expressed her concerns that more traditional Japanese retailers are missing out on the recent influx of customers. She hopes to attract genuine Japanese businesses and support Asian American entrepreneurs. Her focus is on fostering education, community building, and dialogue around identity and tradition among Japanese and Japanese Americans.
As the oldest Japantown in the U.S., there are fears among merchants that new development projects could disrupt commercial growth once again. Grace Horikiri, the Director of Community Welfare for Japantown, noted that everyone is still recovering from the pandemic and is now facing the challenge of helping businesses adapt to future changes.
Kagami believes that one key strategy for preserving the soul of Japantown is to encourage young Japanese Americans to integrate into the community and start their own businesses. Kenny Okagaki, a young entrepreneur who opened a store in Japantown in April 2022, shared his childhood dream of being a business owner. He emphasized that the best way to ensure Japantown’s continued success is to support local businesses, join community organizations and basketball leagues, participate in festivals, and volunteer to promote positive growth.
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