With US cities struggling, San Francisco has actually become a shining model of recovery

San Francisco is showing other cities how to recover: First the politics need to change, then the policies change, then you start to see progress on the ground.

A man with a needle in his arm. Streets littered with trash. Constant retail theft. Cars with broken windows from smash-and-grab auto burglaries.

These are some of the images that have been used recently to describe San Francisco. But even if that narrative may have been accurate a year ago, it is now contrary to what we generally see in San Francisco today. 

In the San Francisco of spring 2024, you instead find commuters grabbing coffees and heading in to their offices; tourists admiring the streets comprised of unique Edwardian and Victorian architecture; friends enjoying the fresh fish at outdoor restaurants; and families playing in the beautiful parks. There is less crime and greater presence of police and city ambassadors. There are more drug arrests.

The negative narrative about San Francisco is out of date, at least nine months behind the reality. To be sure, there is still more work to be done, but things are moving in the right direction. San Francisco, having suffered a very dark period, is actually becoming a model for other large cities that are struggling with public safety. The formula is not easy, but it is simple: First the politics need to change, then the policies change, then you start to see progress on the ground.

When comparing San Francisco to its recent past, the city has made noticeable public safety progress. In 2023, it has been reported that overall crime dropped 7 percent from the previous year. Property crime was at its lowest in 10 years (excluding 2020), and violent crime is down 11 percent since 2019. Voters are galvanized by these improvements and want the city to take further steps to aid in the recovery.

In the March election, San Franciscans voted by wide margins for more public safety, more clean streets, and against new taxes. In 2023, drug arrests doubled, and these new measures approved by the voters will lead to further progress on public safety.

For several years, San Francisco struggled with a narrative that it had descended into lawlessness. The pervasive “San Francisco doom-loop” plot, along with financial losses since the pandemic, have resulted in business interests questioning whether San Francisco is still worth the investment.

This view was not without reason. Government policies before and during the pandemic made it prohibitively expensive to do business in the city. Unproven approaches to drug abuse and public safety caused tourists and business travelers to choose other destinations.

The city has recognized that many of its public policies fell short of the needs of residents and visitors. As leaders of the city continue to help it get cleaner and safer, they also need to recognize that the vibrant core of San Francisco’s economy has long been its hospitality industry. 

This industry has withstood the test of time, but is in a precarious situation in the short term, due to high interest rates, fewer business and leisure visitors compared to pre-pandemic levels, and the still-high costs of doing business in the city. These factors have direct and dire consequences for hospitality workers, residents of the city and the city’s tax base and budget, which are heavily supported by the tourism and hospitality businesses.

A key component to San Francisco’s further recovery is investment in the hospitality and tourism industry. Public policy must both aid in the industry’s recovery and enact policies that instill faith in the travel and business community that San Francisco is a wonderful place to visit, or hold a business meeting or large-scale conference.

This isn’t the first time the city has faced hurdles. Through its ups and downs, San Francisco has always remained a solid long-term investment — after all, it is one of the most beautiful cities in the world, surrounded by some of the most beautiful sites in the world, and home to some of the best hotels and restaurants in the world.

San Francisco has repeatedly come back stronger after earthquakes, fires, and tech bubbles and busts. As leaders continue to invest in public policies that address its issues, the world will see that it remains one of the best places to visit.

Jon E. Bortz is chairman and CEO of Pebblebrook Hotel Trust. Alex Bastian is president and CEO of the Hotel Council of San Francisco.