The return of university students to Cambridge and surrounding areas at the start of the fall semester often marks a surge in revenue for the local businesses of Harvard Square; however, none of these businesses could have predicted the drop in their usual customer base this fall when we entered into 2020.
The number of students living on college campuses, which makes up a sizable portion of customers in Harvard Square, is down due to restrictions posed in response to the coronavirus. Many universities are utilizing hybrid or remote learning to limit the number of students on campus. Harvard University, for example, has welcomed only 25% of its undergraduates to campus this semester. Other colleges including Berklee College of Music have opted for remote classes only. Many students have decided to forgo on-campus housing in favor of alternative housing options such as off-campus apartments, or they have chosen to stay at home.
Students have less of a reason to travel to businesses not considered essential. In general, there has been less of a reason for travelling due to the risk of contracting the coronavirus and potentially spreading it to others. Among students in particular, sales of semester MBTA passes have been in decline. MIT remarked that it sold about 75 passes this year in comparison to 1,000 passes sold last year. It’s not just less foot traffic among students affecting local businesses, but even the type of students being allowed to come back on campus.
Harvard Square businesses have noted that freshmen, the main segment of the student population universities are allowing to live on campus, spend less than upperclassmen. In regards to this trend, Executive Director of the Harvard Square Business Association Denise A. Jillson commented, “The kinds of businesses that they [the younger student body] go to are the ones on the lower end of the scale in terms of price point.” This holds especially true for establishments serving alcohol. Aside from less upperclassmen on campus, the cancellation of local events has hampered business.
Traditional events known for driving thousands of people to Harvard Square have been cancelled or adapted to a remote format. The Head of the Charles Regatta, an annual rowing race held on the Charles River in late October, is just one example. This weekend event drew more than $75 million in economic impact to the Commonwealth of Massachusetts last year according to an economic analysis posted by the HOCR organization. Instead of an in-person race this October, the event will be held remotely. Over 11,000 athletes have the option to use GPS devices or ergometer rowing machines on their own body of water during the weekend of the race. Restrictions for reopening the city of Cambridge comprise more issues worrying Harvard Square businesses.
Cambridge delaying its move to Step 2 of Phase 3 of reopening is not good news for indoor and outdoor performance venues, gyms, libraries, and museums seeking to boost their capacity to 50%. The state allowed cities low-risk communities including Cambridge to make this transition last week. However, Cambridge will not be moving forward due to a spike in cases across the state in recent weeks. Cambridge’s status as a destination city would put its residents at greater risk. In addition, the city seeks to gather more data on infection rates as people spend more time indoors, especially at schools open for in-person learning. According to the Harvard Square Business Association, most businesses have come to accept the city’s decision.
There are still many uncertainties lying ahead for Harvard businesses including fears of a second wave, but things are looking up for the community at the moment. Business has picked up with the arrival of college students, even though it does not match the levels of previous years. Local universities including Harvard have worked with businesses to restructure lease obligations and offer rent relief. The community remains strong and resilient in the face of adversity.
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