San Francisco’s Japantown is witnessing a significant economic revival, with second-quarter sales tax revenue this year rising 17% compared to the same period in 2019. Once struggling due to extensive closures and vacancies during the height of the COVID-19 pandemic, Japantown now stands in stark contrast to its former state.
According to a report from the San Francisco Standard, between April and June of this year, only two areas in the city saw an increase in sales tax: Japantown and the Presidio. In that same timeframe, the Tenderloin area experienced a 68% drop in sales tax revenue.
While the exact reasons for Japantown’s resurgence are uncertain, local business owners cite a variety of factors, including youth-friendly community activities and a renewed sense of safety. However, there is a lingering anxiety about the sustainability of this current wave of prosperity.
Despite the economic challenges faced by many other areas in San Francisco—characterized by a gloomy atmosphere and vacant storefronts—Japantown is bustling with customers, a welcome sight for business owners. The nearby efficient public transit system, combined with the area’s relative distance from the issues of drug use and homelessness in the city center, has made Japantown a preferred destination for both locals and visitors.
The rich cultural history of Japantown, along with specialized stores and a diverse range of Asian cuisine, also contributes to its appeal. Store owners report a steady flow of customers, a notable contrast to the shopping center’s situation three years ago, when more than ten shops closed due to pandemic-related financial struggles.
Susie Kagami, executive director of the nonprofit organization Koho, expresses concern that more traditional Japanese retailers may not be benefiting from the recent influx of customers. She hopes to attract genuine Japanese businesses and support Asian American entrepreneurs. Her mission involves promoting education, community building, and discussions among Japanese and Asian Americans regarding identity and tradition.
As the oldest Japantown in the United States, local merchants worry that new developments could again disrupt commercial growth and the ongoing recovery. Grace Horikiri, the community welfare director, notes that while everyone is rising from the effects of the pandemic, there’s now an urgent need to assist businesses in navigating future challenges.
Kagami believes that one strategy to maintain Japantown’s spirit is to encourage young Asian Americans to engage with the community and start their own businesses. Kenny Okagaki, a young entrepreneur who opened a store in Japantown in April 2022, emphasizes that the best way to ensure Japantown thrives now and in the future is to support local businesses, participate in community organizations and basketball leagues, and volunteer for local events to foster positive growth.
