Asheville’s downtown business landscape is undergoing significant changes following Tropical Storm Helene, which, despite not causing widespread physical damage, led to a nearly two-month potable water shortage. This disruption, coupled with a dramatic decline in foot traffic, has resulted in approximately 40 business closures, including 15 restaurants. Despite these challenges, local business leaders express optimism, citing new ventures and a focus on long-term recovery.
Key takeaways
- Around 40 downtown Asheville businesses have closed since Tropical Storm Helene, with 15 being restaurants.
- Downtown visitation decreased by an estimated 21 per cent year-over-year for a recent 30-day period.
- Business leaders are not panicking, noting that some retail spaces are quickly re-leased.
- Some closures are attributed to owners reaching retirement age or personal circumstances, exacerbated by Helene’s impact.
- New businesses are opening, focusing on local clientele and long-term community growth.
The impact of Helene and declining tourism
Tropical Storm Helene, which struck just before the crucial autumn foliage season, significantly impacted Asheville’s tourism. The Buncombe County Tourism Development Authority (TDA) reported a record 13.9 million visitors in 2023, a figure that might have been surpassed if not for Helene. Recent statistics from April show hotel demand down by 7 per cent from last year, with occupancy at 64 per cent, a 5-point drop from 2024 and 10 points from 2019. Downtown Asheville experienced a 21 per cent year-over-year decrease in visitors over a recent 30-day period.
Business closures and reasons
Hayden Plemmons, Executive Director of the Asheville Downtown Association, confirmed about 40 brick-and-mortar business closures downtown. These include long-standing establishments like Bouchon and The Laughing Seed. Owners of The Laughing Seed cited the cumulative toll of the past five years, including COVID-19, staffing issues, and downtown challenges, as reasons for their closure, stating that Helene’s aftermath was ‘more than we can manage’. Other closures, such as Mountain Made gallery, were influenced by personal and family medical issues alongside the downturn from Helene.
Optimism and new beginnings
Despite the closures, business leaders remain hopeful. Kit Cramer, President and CEO of the Asheville Area Chamber of Commerce, believes ‘the only way out is through’ and anticipates a ‘robust’ summer tourism season. Plemmons noted that while restaurant spaces take longer to fill, retail spaces are being leased relatively quickly, sometimes by businesses relocating from other districts. New ventures are also emerging, such as Asheville Forager, a grocery store/deli focusing on local customers and vendors affected by Helene. Additionally, The Museum of Costume Jewelry plans a late summer opening, banking on Asheville’s strong tourism appeal.
The perception challenge
One significant challenge is the public perception that Asheville was severely damaged by Helene. While downtown was largely spared, other areas like the River Arts District and Biltmore Village experienced significant flooding. Cramer emphasised the need to demonstrate that Asheville is ‘back’ through positive visitor experiences and continued support for affected areas. Despite the challenges, visitors like Mark and Laurie Moreno, celebrating their 35th wedding anniversary, found downtown Asheville vibrant and walkable, dispelling some of the negative perceptions.
