San Francisco's tourism industry is facing a severe downturn, leading to massive debt for its luxury hotels, particularly the Hilton Parc 55 and Hilton San Francisco Union Square, which have collectively lost $1 billion in value. The delinquency rate on commercial mortgage loans in the hotel sector has skyrocketed to 41.6%, up from 5.7% last year, reflecting the struggles of recovery as the city lags behind other regions. The San Francisco Travel Association predicts that visitor numbers won't return to pre-pandemic levels until 2028 or 2029, with weekend hotel occupancy down 22% since 2019. Contributing factors include high living costs, open-air drug markets, and a growing homeless population, deterring tourists. Moreover, the strong dollar and economic uncertainty are discouraging potential visitors, particularly from China. As hospitality workers face reduced hours and financial strain, contracts for around 10,000 hotel workers are set to expire, raising concerns for the industry’s future.