Canceling SXSW could be nightmare for local businesses, Austin economy, says economists

AUSTIN, Texas - South by Southwest is right around the corner and so far almost 50,000 people have signed a petition to cancel it. Economists are looking at that and say if that were to happen, it could be a nightmare for local businesses and Austin economy.

“There's so much that happens and it's very entertainment-driven. It's driven by local culture, it's driven by arts, it's driven by the technology and business interests that we have here in town,” said Bradley Gold.

RELATED: List of companies, speakers that have pulled out of SXSW due to coronavirus

Gold, a McCombs School of Business lecturer, says canceling the event would be harder than some may think.

‘The number of organizations and businesses that are already involved have already planned around this event, is substantial. It touches this campus, it touches city government, it touches pretty much every private business in town big and small,” said Gold. 

Gold says SXSW impacts the whole community.

RELATED: Officials: No evidence closing SXSW will make community 'safer'

“There's millions of dollars of positive economic growth when we get travelers coming into town, staying in our hotels, eating our food, buying rideshare tokens and everything else people do when they come to town,” he said.

If SXSW gets canceled, Gold says local businesses could lose a lot.

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“The small local caterer that is counting on South By Southwest to be one of their major annual events and one of their opportunities to gain exposure to people in the community, if they lose that, then that will be not just a detriment to their bottom line today, but a detriment to their overall business development and sales opportunities,” said Gold.