The city of New York is facing a daunting challenge as it battles to maintain its position as a top tourist destination. A recent report by the New York City Comptroller has highlighted the potential devastating economic impact of a sharp decline in international tourism, emphasizing the need for swift intervention to reduce the city’s tourist tax.
The report warns that if the number of international tourists drops by 25% this year, the city could lose an enormous $9 billion in economic activity, while the hospitality industry could lose up to 10% of its workers.
Travel from the UK is already down 40%, and travel from Canada has dropped 70% – the two largest groups of international visitors who stay and spend in New York. The Hotel Association of New York City (HANYC) and the Hotel and Gaming Trades Council (HTC) are urging City Hall and the City Council to lower the hotel occupancy tax from a whopping 5.875% to 3% in the upcoming city budget.
- Lowering the tax will help draw visitors back, boosting hotel occupancy rates, preserving jobs and keeping hotels open.
- It will also increase city revenue by encouraging more tourists to stay longer and spend more in the city.
- Reducing the tax will create a more competitive tourism industry, attracting visitors from other cities and regions.
| Tax Reduction Proposal | Benefits |
|---|---|
| Lowering the hotel occupancy tax from 5.875% to 3% |
|
Vijay Dandapani, CEO and president of HANYC, emphasized the importance of reducing the tourist tax. “International tourists, particularly from Canada and the UK, are key to filling hotel rooms and driving our city’s economy. We can’t afford to keep losing more of them,” he said.
“It’s time for the city to take a proactive approach to boosting tourism and reducing the tax. By doing so, we can attract more visitors and boost their local spending, which is a smart way to head off potential headwinds to the city’s tourism economy,” said Rich Maroko, president of HTC.
Mayor Adams has also indicated that his administration is actively evaluating the potential benefits of reducing the hotel occupancy tax. “Our team is looking at the possibility of dropping the tax,” he said recently.
The proposal to lower the tax is backed by Council Members Amanda FarÃas and Kevin Riley, as well as HTC and leaders of the tourism industry. HANYC has launched the StayNYC campaign to raise awareness and build support for the proposal.
Reducing the hotel occupancy tax will not only benefit the tourism industry but also the city residents who rely on tourism for economic activity. It’s a smart move that can help the city stay competitive and maintain its position as a top tourist destination.
The impact of reducing the hotel occupancy tax will be felt not only in the tourism industry but also in other sectors such as hospitality, retail, and entertainment.
As the city navigates this challenging period, it’s clear that reducing the hotel occupancy tax is a step in the right direction.
