[austlar1]

A local hotel industry exec who posts on the Austin forum reports that his hotel and most other local hotels are contemplating layoffs and severe cost cutting measures. The SXSW cancellation left a huge hole that pretty much wipes March off the books for local hotels and downtown entertainment and food establishments. Supposedly there have been multiple convention and business meeting cancellations scheduled for later in the spring and summer. Austin built several thousand additional hotel rooms downtown (with more in the pipeline) over the past three or four years. Convention and tourism is probably now our second largest employment sector. I guess the same story will play out in place after place over the next several months.

SATURDAY AFTERNOON UPDATE- Took a drive down South Congress and through downtown this afternoon. I was surprised and pleased to see the sidewalks filled with pedestrians and the local businesses doing brisk business. It is a slightly chilly but sunny afternoon here in Austin. The bars and restaurants with sidewalk service were all looking busy. Obviously there are still a lot of visitors in town for the weekend. It would be nice to see activity of this sort remain somewhat normal in the days and weeks ahead.