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| Coronavirus Shut Down the ‘Experience Economy.’ Can It Come Back? | Coronavirus Shut Down the ‘Experience Economy.’ Can It Come Back? |
| (7 days later) | |
| A quandary is lurking at the heart of the efforts to revive the economy. | A quandary is lurking at the heart of the efforts to revive the economy. |
| In recent decades, a growing share of job growth and gross domestic product has come from the business of getting people together — from college sports and music festivals like Coachella to ax-throwing bars and ice cream museums. Yet given the infectious nature of the coronavirus, these very events will be among the very last to return. | In recent decades, a growing share of job growth and gross domestic product has come from the business of getting people together — from college sports and music festivals like Coachella to ax-throwing bars and ice cream museums. Yet given the infectious nature of the coronavirus, these very events will be among the very last to return. |
| “Any place people want to gather is a place no one wants to be right now,” said Joe Pine, a co-author of “The Experience Economy.” | “Any place people want to gather is a place no one wants to be right now,” said Joe Pine, a co-author of “The Experience Economy.” |
| That bleak truth has profound implications for businesses large and small. And with most large-scale gatherings on hold for the foreseeable future, the dearth of live events is already taking a psychological toll, not only on those in the industry but on society at large. | That bleak truth has profound implications for businesses large and small. And with most large-scale gatherings on hold for the foreseeable future, the dearth of live events is already taking a psychological toll, not only on those in the industry but on society at large. |
| “Human contact is really what our business is built on,” said Roland Swenson, chief executive of South by Southwest, the music, film and technology festival in Austin, Texas, which was canceled in March. “If that is lost, then the world will be a poorer place.” | “Human contact is really what our business is built on,” said Roland Swenson, chief executive of South by Southwest, the music, film and technology festival in Austin, Texas, which was canceled in March. “If that is lost, then the world will be a poorer place.” |
| The economy’s reliance on live events has been growing for years. When Disneyland opened in 1955, it sparked a boom in the theme park business. In recent decades, the Wizarding World of Harry Potter, Great Wolf Lodge water parks and more have emerged to compete for the attention — and money — of American families. | The economy’s reliance on live events has been growing for years. When Disneyland opened in 1955, it sparked a boom in the theme park business. In recent decades, the Wizarding World of Harry Potter, Great Wolf Lodge water parks and more have emerged to compete for the attention — and money — of American families. |
| As live sports became lucrative television properties, leagues like the W.N.B.A. and Major League Soccer were born, expensive stadiums with state-of-the-art amenities were built and the sheer number of games grew. When the record business faltered, concerts became the profit centers for musical acts. Many media companies found that hosting conferences was more profitable than publishing magazines. Lately, escape rooms and pop-up experiences like the Color Factory and Candytopia have proliferated. | As live sports became lucrative television properties, leagues like the W.N.B.A. and Major League Soccer were born, expensive stadiums with state-of-the-art amenities were built and the sheer number of games grew. When the record business faltered, concerts became the profit centers for musical acts. Many media companies found that hosting conferences was more profitable than publishing magazines. Lately, escape rooms and pop-up experiences like the Color Factory and Candytopia have proliferated. |
| Even the boom in restaurants was about atmospherics as much as it was about food. Starbucks succeeded by creating not just a latte with a nice profit margin but a place outside the home and office where people wanted to linger. | Even the boom in restaurants was about atmospherics as much as it was about food. Starbucks succeeded by creating not just a latte with a nice profit margin but a place outside the home and office where people wanted to linger. |
| “Surround coffee with an experience and you can charge $5 a cup,” Mr. Pine said. | “Surround coffee with an experience and you can charge $5 a cup,” Mr. Pine said. |
| The economic output associated with such diversions has ballooned. G.D.P. attributable to arts, entertainment, recreation, accommodations and food services was nearly $1.6 trillion last year, up from $979 billion a decade ago, according to the Bureau of Economic Analysis. | The economic output associated with such diversions has ballooned. G.D.P. attributable to arts, entertainment, recreation, accommodations and food services was nearly $1.6 trillion last year, up from $979 billion a decade ago, according to the Bureau of Economic Analysis. |
| All those new experiences created jobs, and over the same period, employment in the leisure and hospitality industries grew about 30 percent, reaching a high of nearly 17 million early this year, according to the Bureau of Labor Statistics. | All those new experiences created jobs, and over the same period, employment in the leisure and hospitality industries grew about 30 percent, reaching a high of nearly 17 million early this year, according to the Bureau of Labor Statistics. |
| As the domestic manufacturing industry waned, the businesses involved in bringing large groups of people together became ever more important to employment. And it was more than just hot dog vendors and parking lot attendants and security guards. Whole fields sprang up to support the business of live events, giving rise to a legion of event planners, lighting specialists and start-ups like Eventbrite, the online ticketing platform. There was even a new senior-level job at some corporations: head of experiences. | As the domestic manufacturing industry waned, the businesses involved in bringing large groups of people together became ever more important to employment. And it was more than just hot dog vendors and parking lot attendants and security guards. Whole fields sprang up to support the business of live events, giving rise to a legion of event planners, lighting specialists and start-ups like Eventbrite, the online ticketing platform. There was even a new senior-level job at some corporations: head of experiences. |
| Yet it turns out that an economy that depends on gathering is especially vulnerable to disruption by a virus. In the last two months, the number of people employed in the leisure and hospitality industries has been roughly halved, accounting for about a quarter of the staggering job losses. | Yet it turns out that an economy that depends on gathering is especially vulnerable to disruption by a virus. In the last two months, the number of people employed in the leisure and hospitality industries has been roughly halved, accounting for about a quarter of the staggering job losses. |
| Movie theaters, sports venues and the vast majority of tourist attractions remain closed, and many may not open for months. Gov. Gavin Newsom of California suggested that fans might not be able to attend games in person until there is a vaccine, a breakthrough that isn’t expected until next year at the earliest. | Movie theaters, sports venues and the vast majority of tourist attractions remain closed, and many may not open for months. Gov. Gavin Newsom of California suggested that fans might not be able to attend games in person until there is a vaccine, a breakthrough that isn’t expected until next year at the earliest. |
| “It’s difficult to imagine a stadium that’s filled until we have immunity and until we have a vaccine,” Mr. Newsom said. “There are conditions that persist in this state and this nation that make reopening very, very challenging.” | “It’s difficult to imagine a stadium that’s filled until we have immunity and until we have a vaccine,” Mr. Newsom said. “There are conditions that persist in this state and this nation that make reopening very, very challenging.” |
| If his assessment is correct, that’s bad news for Major League Baseball ($10.7 billion in revenue last year), the National Basketball Association (about $8 billion in annual revenue) and the National Football League ($15 billion or more in annual revenue). | If his assessment is correct, that’s bad news for Major League Baseball ($10.7 billion in revenue last year), the National Basketball Association (about $8 billion in annual revenue) and the National Football League ($15 billion or more in annual revenue). |
| In states that have started to reopen, customers have not yet flocked back to establishments of the experience economy. When an Atlanta outpost of Bad Axe Throwing reopened late last month, hardly anyone showed up. | In states that have started to reopen, customers have not yet flocked back to establishments of the experience economy. When an Atlanta outpost of Bad Axe Throwing reopened late last month, hardly anyone showed up. |
| “That was the worst-case scenario, especially with all the marketing we did,” the company’s chief executive, Mario Zelaya, said. “The reopening weekend was a disaster. We had two customers all weekend.” | “That was the worst-case scenario, especially with all the marketing we did,” the company’s chief executive, Mario Zelaya, said. “The reopening weekend was a disaster. We had two customers all weekend.” |
| Companies that depend on live events, including Disney, which owns ESPN in addition to its theme parks, have seen their stocks fall more drastically than the broader markets. Shares in the three major cruise operators, Carnival, Royal Caribbean and Norwegian, are all down more than 67 percent this year. | Companies that depend on live events, including Disney, which owns ESPN in addition to its theme parks, have seen their stocks fall more drastically than the broader markets. Shares in the three major cruise operators, Carnival, Royal Caribbean and Norwegian, are all down more than 67 percent this year. |
| And with mass unemployment sapping disposable income, most business travel being put on hold and tourism around the world having ground to a halt, the very viability of major airlines is in question. There are already questions about whether previously mundane occurrences — trade shows, industry conventions, conferences — will return to pre-pandemic levels when it is safe to travel again. | And with mass unemployment sapping disposable income, most business travel being put on hold and tourism around the world having ground to a halt, the very viability of major airlines is in question. There are already questions about whether previously mundane occurrences — trade shows, industry conventions, conferences — will return to pre-pandemic levels when it is safe to travel again. |
| Updated July 7, 2020 | |
| The coronavirus can stay aloft for hours in tiny droplets in stagnant air, infecting people as they inhale, mounting scientific evidence suggests. This risk is highest in crowded indoor spaces with poor ventilation, and may help explain super-spreading events reported in meatpacking plants, churches and restaurants. It’s unclear how often the virus is spread via these tiny droplets, or aerosols, compared with larger droplets that are expelled when a sick person coughs or sneezes, or transmitted through contact with contaminated surfaces, said Linsey Marr, an aerosol expert at Virginia Tech. Aerosols are released even when a person without symptoms exhales, talks or sings, according to Dr. Marr and more than 200 other experts, who have outlined the evidence in an open letter to the World Health Organization. | |
| Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. | Common symptoms include fever, a dry cough, fatigue and difficulty breathing or shortness of breath. Some of these symptoms overlap with those of the flu, making detection difficult, but runny noses and stuffy sinuses are less common. The C.D.C. has also added chills, muscle pain, sore throat, headache and a new loss of the sense of taste or smell as symptoms to look out for. Most people fall ill five to seven days after exposure, but symptoms may appear in as few as two days or as many as 14 days. |
| Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. | Scientists around the country have tried to identify everyday materials that do a good job of filtering microscopic particles. In recent tests, HEPA furnace filters scored high, as did vacuum cleaner bags, fabric similar to flannel pajamas and those of 600-count pillowcases. Other materials tested included layered coffee filters and scarves and bandannas. These scored lower, but still captured a small percentage of particles. |
| A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. | A commentary published this month on the website of the British Journal of Sports Medicine points out that covering your face during exercise “comes with issues of potential breathing restriction and discomfort” and requires “balancing benefits versus possible adverse events.” Masks do alter exercise, says Cedric X. Bryant, the president and chief science officer of the American Council on Exercise, a nonprofit organization that funds exercise research and certifies fitness professionals. “In my personal experience,” he says, “heart rates are higher at the same relative intensity when you wear a mask.” Some people also could experience lightheadedness during familiar workouts while masked, says Len Kravitz, a professor of exercise science at the University of New Mexico. |
| The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. | The steroid, dexamethasone, is the first treatment shown to reduce mortality in severely ill patients, according to scientists in Britain. The drug appears to reduce inflammation caused by the immune system, protecting the tissues. In the study, dexamethasone reduced deaths of patients on ventilators by one-third, and deaths of patients on oxygen by one-fifth. |
| The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. | The coronavirus emergency relief package gives many American workers paid leave if they need to take time off because of the virus. It gives qualified workers two weeks of paid sick leave if they are ill, quarantined or seeking diagnosis or preventive care for coronavirus, or if they are caring for sick family members. It gives 12 weeks of paid leave to people caring for children whose schools are closed or whose child care provider is unavailable because of the coronavirus. It is the first time the United States has had widespread federally mandated paid leave, and includes people who don’t typically get such benefits, like part-time and gig economy workers. But the measure excludes at least half of private-sector workers, including those at the country’s largest employers, and gives small employers significant leeway to deny leave. |
| So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. | So far, the evidence seems to show it does. A widely cited paper published in April suggests that people are most infectious about two days before the onset of coronavirus symptoms and estimated that 44 percent of new infections were a result of transmission from people who were not yet showing symptoms. Recently, a top expert at the World Health Organization stated that transmission of the coronavirus by people who did not have symptoms was “very rare,” but she later walked back that statement. |
| Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. | Touching contaminated objects and then infecting ourselves with the germs is not typically how the virus spreads. But it can happen. A number of studies of flu, rhinovirus, coronavirus and other microbes have shown that respiratory illnesses, including the new coronavirus, can spread by touching contaminated surfaces, particularly in places like day care centers, offices and hospitals. But a long chain of events has to happen for the disease to spread that way. The best way to protect yourself from coronavirus — whether it’s surface transmission or close human contact — is still social distancing, washing your hands, not touching your face and wearing masks. |
| A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. | A study by European scientists is the first to document a strong statistical link between genetic variations and Covid-19, the illness caused by the coronavirus. Having Type A blood was linked to a 50 percent increase in the likelihood that a patient would need to get oxygen or to go on a ventilator, according to the new study. |
| If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) | If air travel is unavoidable, there are some steps you can take to protect yourself. Most important: Wash your hands often, and stop touching your face. If possible, choose a window seat. A study from Emory University found that during flu season, the safest place to sit on a plane is by a window, as people sitting in window seats had less contact with potentially sick people. Disinfect hard surfaces. When you get to your seat and your hands are clean, use disinfecting wipes to clean the hard surfaces at your seat like the head and arm rest, the seatbelt buckle, the remote, screen, seat back pocket and the tray table. If the seat is hard and nonporous or leather or pleather, you can wipe that down, too. (Using wipes on upholstered seats could lead to a wet seat and spreading of germs rather than killing them.) |
| If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. | If you’ve been exposed to the coronavirus or think you have, and have a fever or symptoms like a cough or difficulty breathing, call a doctor. They should give you advice on whether you should be tested, how to get tested, and how to seek medical treatment without potentially infecting or exposing others. |
| Any falloff in spending on these big-ticket items will be especially painful for cities that cater to tourists, such as Las Vegas, where crowded casinos and a plethora of live shows are the lifeblood of the economy. Gambling revenues at U.S. casinos reached an all-time high of $41.7 billion in 2018, according to the American Gaming Association. | Any falloff in spending on these big-ticket items will be especially painful for cities that cater to tourists, such as Las Vegas, where crowded casinos and a plethora of live shows are the lifeblood of the economy. Gambling revenues at U.S. casinos reached an all-time high of $41.7 billion in 2018, according to the American Gaming Association. |
| But beyond the immediate hardships created by sweeping job losses and stagnant businesses, the standstill in gatherings is already having a deeper impact on the national psyche. The business of events, however commercial it might be, is also central to our identities. Getting together for birthday parties at Chuck E. Cheese and bachelor parties at football games is how we make meaningful memories and define ourselves. | But beyond the immediate hardships created by sweeping job losses and stagnant businesses, the standstill in gatherings is already having a deeper impact on the national psyche. The business of events, however commercial it might be, is also central to our identities. Getting together for birthday parties at Chuck E. Cheese and bachelor parties at football games is how we make meaningful memories and define ourselves. |
| “If you go to the World Cup or a rock concert, it’s not just a commercial transaction,” said Priya Parker, author of “The Art of Gathering.” “It’s also an expression of identity.” | “If you go to the World Cup or a rock concert, it’s not just a commercial transaction,” said Priya Parker, author of “The Art of Gathering.” “It’s also an expression of identity.” |
| With the Major League Baseball season delayed, Dr. Anthony Fauci has waxed lyrical about his love of attending baseball games. Taylor Swift lamented her inability to play for live audiences during the pandemic, then announced that a show she recorded last year in Paris would be broadcast on national television. | With the Major League Baseball season delayed, Dr. Anthony Fauci has waxed lyrical about his love of attending baseball games. Taylor Swift lamented her inability to play for live audiences during the pandemic, then announced that a show she recorded last year in Paris would be broadcast on national television. |
| Even President Trump is missing the crowds. “Hopefully our Country will soon mend,” he tweeted this month. “We are all missing our wonderful rallies, and many other things!” | Even President Trump is missing the crowds. “Hopefully our Country will soon mend,” he tweeted this month. “We are all missing our wonderful rallies, and many other things!” |
| Those in the events industry are left wondering what the future will hold. | Those in the events industry are left wondering what the future will hold. |
| Catherine Powell, head of experiences at Airbnb and a former Disney executive who oversaw theme parks, expressed optimism that when it was safe to gather again, the crowds would return. | Catherine Powell, head of experiences at Airbnb and a former Disney executive who oversaw theme parks, expressed optimism that when it was safe to gather again, the crowds would return. |
| “When lockdown lifts, there will be an incredible pent-up demand to want to connect,” she said. | “When lockdown lifts, there will be an incredible pent-up demand to want to connect,” she said. |
| There are early signs that might be true. Disney reopened its theme park in Shanghai recently, and quickly sold out of tickets. Yet admission was sharply limited to promote social distancing, and health precautions were ubiquitous. In Orlando, Fla., Disney and Universal are reopening some of their shopping areas, albeit with social distancing measures, a mask requirement and mandatory temperature checks at Universal. | There are early signs that might be true. Disney reopened its theme park in Shanghai recently, and quickly sold out of tickets. Yet admission was sharply limited to promote social distancing, and health precautions were ubiquitous. In Orlando, Fla., Disney and Universal are reopening some of their shopping areas, albeit with social distancing measures, a mask requirement and mandatory temperature checks at Universal. |
| As a result, the theme parks — once bustling profit engines for some of the biggest corporations — will be making a small fraction of the money they normally would, and the virus will never be far from visitors’ minds. | As a result, the theme parks — once bustling profit engines for some of the biggest corporations — will be making a small fraction of the money they normally would, and the virus will never be far from visitors’ minds. |
| “From a travel industry and hospitality perspective, it will take a long time for things to return to normal,” Ms. Powell said. “If they ever return to normal.” | “From a travel industry and hospitality perspective, it will take a long time for things to return to normal,” Ms. Powell said. “If they ever return to normal.” |