South by Southwest in Austin, Texas, was cancelled this year for the first time in 34 years due to the novel coronavirus. | Pixabay
South by Southwest in Austin, Texas, was cancelled this year for the first time in 34 years due to the novel coronavirus. | Pixabay
Due to the novel coronavirus (COVID-19), the annual film, music and technology conference South by Southwest (SXSW) that takes place in Austin, Texas, in March has been cancelled.
This will be the first time in 34 years that the festival will not be held. The festival, which brings approximately $350 million to Austin's economy, affects almost everyone in the city and many can't believe that it has been cancelled.
One Austin resident, Elizabeth Mathis, who works at Javelina, a bar on Rainey Street, said she talked with her coworkers about what to do next.
“I think it’ll be ok,” Mathis said, according to marketplace.org. “I am worried because we were all expecting to have that extra push. It’s our bonus, pretty much. I got hired here in May and I was holding out expecting to be here in March for South by."
Originally, Mathis said she was worried about the virus with so many people who visit Austin, but now she is more worried about paying rent.
The economic impact of the cancellation of SXSW will affect more than bartenders and Uber drivers in the city.
Byron Mowery, owner of Graphics Guys, a graphic design shop in Austin, produces promotional materials for cars, walls and banners. Mowery said losing SXSW's business won't help his business.
“It’s tough, man, it sucks. It really sucks, I don’t know how else to put it,” Mowery said.
He said the festival is like Black Friday and Christmas combined for the graphics business.
“We stand to not write up $75,000 in business just for this month based on South by, which is huge for us; we normally double, triple sometimes quadruple our monthly net based just on South by,” Mowery said.
He said he will be able to handle to lack of business from the festival because of all the local business he receives.
But owner of HK Austin hostel, Brent Underwood, doesn't think his business will survive the lack of SXSW business. His hostel was booked for the festival, but 90% of the bookings were cancelled when the festival was cancelled. Underwood is losing more than just his yearly vacation with this lack of business.
“It’s more like, I don’t know how we’re going to pay the property taxes this year because of the loss of income. And so it’s a pretty substantial loss,” he said.
Underwood refunded 100% of the cancelled bookings due to the circumstances. He is now considering making his deposits nonrefundable for future bookings.
Other businesses have been looking at changing terms and conditions. The company that runs SXSW has rumors circulating that they will collect insurance money due to a state of emergency, but the COVID-19 is not covered.
“So a lot of times something like this would fall under what we call the ‘force majeure’ provision. And the force majeure provision basically says, if these things happen, meaning things that are typically outside of the control of either party, that you have the right to cancel the contract,” Lauren Spahn, an entertainment lawyer in Nashville, said.
The SXSW contracts aren't likely to go to court, Spahn said.
Currently, Austin businesses are just trying to get by. Some have even organized events and fundraisers to help with loss in business.
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