Devastating City Tourism Agency Forecast Drives Momentum for Tourist Tax Cut

NYC Tourism + Conventions drops its 2025 forecast of international visitors by 17% as Council Members push hotel occupancy tax reduction, City Hall studies benefits

NEW YORK, NY (05/09/2025) (readMedia)-- Yesterday, NYC Tourism + Conventions announced that the city is projected to lose close to half-a-million tourists this year compared to last, prompting urgent calls to cut the city's tax on tourists - the highest among major U.S. cities. City Council Members are backing the proposal, and Mayor Adams' administration has confirmed it is actively reviewing the measure.

"The latest projections confirm what we're already seeing on the ground: fewer international travelers and fewer hotel bookings," said Vijay Dandapani, President and CEO of HANYC. "International visitors are key to filling hotel rooms and driving our city's economy - and we must incentivize them to choose New York by cutting the tax on tourists. Cutting the tourist tax will also send a clear message that New York is a welcoming destination despite challenges otherwise beyond our control."

NYC Tourism + Conventions projects that only 12.1 million international travelers will visit New York this year, a devastating 17% drop from its earlier 2025 forecasts. International tourists, who spend four-times more than domestic visitors, are essential to New York's tourism economy and hotel industry. But travel from top markets has collapsed: travel is down 70% from Canada and 40% from the UK. Hotel bookings from Canada alone are projected to drop 30% for the summer and fall. This plunge in tourism threatens to wipe out as much as $9 billion in economic activity in the city, putting over 50,000 hotel jobs at risk as the industry still struggles to fully recover from COVID shutdowns.

The Hotel Association of New York City (HANYC) is calling on City Hall and the City Council to lower the hotel occupancy tax, a tax on tourists, from a whopping 5.875% to 3% in the upcoming city budget. With NYC Tourism + Convention's devastating forecast, cutting this tax on tourists will help draw essential visitors back - boosting hotel occupancy rates, preserving jobs and keeping hotels open, and ultimately increasing city revenue. The last time the City dropped the tax on tourism, both hotel occupancy rates and hotel tax revenue surged.

HANYC launched StayNYC in April calling for City Hall and the City Council to reduce the tourism tax. The effort is supported by Council leaders such as Amanda Farías and Kevin Riley, as well as the Hotel and Gaming Trades Council (HTC) and other key members of the tourism industry.

Rich Maroko, president of HTC, said in a statement that dropping the hotel occupancy tax "will attract more visitors and boost their local spending, which is a smart way to head off potential headwinds to the city's tourism economy." He added: "This tax adjustment is good for workers, city residents, and the city's tax base."

The proposed tax cut is gaining momentum among City Council Members, and Mayor Adams' administration has indicated that it is actively evaluating the potential benefits of such a move.

Mayor Adams said recently, "Our team is looking at the possibility of dropping the tax."

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About HANYC: Serving the Hotel Industry since 1878, HANYC (Hotel Association of New York City) is the oldest hotel association in the US and one of the oldest professional trade associations in the nation . Its founders' mission was to establish an association that would serve as the voice of the hotel industry, supporting its members with the highest standard of services and best available resources. Today the Hotel Association of New York City is an internationally recognized leader in New York City's $5 billion tourism industry, representing nearly 300 of the finest hotels with over 80,000 rooms and approximately 50,000 employees.