Expanded Coalition Calls for Tourist Tax Cut as International Tourism Plummets

NEW YORK, NY (06/02/2025) (readMedia)-- An expanded and powerful coalition of leaders representing New York's hotel, hospitality, construction, business, and arts and culture sectors sent a letter to the Mayor and City Council today urging them to slash the city's hotel occupancy tax, a tax on tourists, to attract more visitors to stay at city hotels and spend at the businesses and institutions that are the backbone of the city's tourism economy. The move comes amid a sharp decline in international tourism that threatens $9 billion in economic activity, highlighting the urgent need to reduce the city's tourist tax in the upcoming budget - currently the highest among major U.S. cities.

READ THE LETTER HERE.

International travelers spend four-times more than domestic visitors, but their numbers are tanking, down 40% from the UK and a staggering 70% from Canada - the city's two biggest international markets. NYC Tourism + Conventions now projects a 17% drop in visitors from earlier 2025 forecasts. That's already translating into fewer hotel stays, which means less foot traffic at restaurants, bars, and local businesses, and declining attendance at museums and other cultural institutions. At stake are the over 50,000 hotel jobs, 10% of all hospitality jobs, 60–65% of jobs in arts and entertainment, and 30–35% of jobs in restaurants and bars that tourism supports.

In response to these headwinds, this powerful coalition is joining the Hotel Association of New York City (HANYC) in urging City Hall and the City Council to lower the hotel occupancy tax from a whopping 5.875% to 3%. Cutting this tax on tourists will help draw visitors back - boosting hotel occupancy rates, preserving jobs, and keeping hotels, restaurants, businesses, and cultural institutions open.

"All of our industries will continue to suffer from the decline in international tourism unless the City acts fast. These visitors are essential to filling hotel rooms and driving our city's economy. We can't afford to keep losing more of them," said Vijay Dandapani, president and CEO of HANYC. "Cutting the tourist tax is a direct investment in getting more travelers through our doors - keeping our hotels, businesses, and cultural institutions open and workers employed. Thank you to everyone who signed on for their continued partnership and for joining us in this effort."

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. Mayor Adams has signaled that his administration is actively evaluating the potential benefits of such a move.

"With tourism rates still down and empty hotel rooms up, the stability of the hotel industry and the livelihoods of the workers who sustain it are at stake. We strongly urge the City Council to adjust the hotel occupancy tax. At such a critical moment, this sensible measure will give the hotel industry the leg up it needs to attract more visitors, spur economic activity across the city, and protect tens of thousands of high-quality union jobs," said Rich Maroko, president of HTC.

The letter sent today was signed by:

• Vijay Dandapani, president and CEO of the Hotel Association of New York City
• Rich Maroko, president of the Hotel and Gaming Trades Council, AFL-CIO
• Andrew Rigie, executive director of the New York City Hospitality Alliance
• Carlo A. Scissura, president and CEO of the New York Building Congress
• Heather Mulligan, president and CEO of the Business Council of New York State, Inc.
• Coco Killingsworth, chair of the Cultural Institutions Group

"New York City is home to over 25,000 restaurants and bars that employ more than 300,000 New Yorkers - many of whom depend on tourist spending to stay in business and to pay their bills," said Andrew Rigie, executive director of the NYC Hospitality Alliance. "That's why we need our elected leaders to reduce the tourism tax to attract more visitors and keep us competitive, while boosting investment in marketing our city as the world's most welcoming and vibrant destination for dining, nightlife, culture, and hospitality."

"Hotels, businesses, and our city's infrastructure depend on tourism to generate the revenue and resources needed to support new development projects that the construction industry relies on. Reducing the hotel occupancy tax will help reignite international travel, strengthen our city's economy, and protect the livelihoods of thousands of workers across multiple sectors, including building and construction. Now is the time for bold action, and I encourage the Mayor and City Council to take this important step," said Carlo A. Scissura, president and CEO of the New York Building Congress.

"A thriving tourism sector is essential to New York's broader economic health. Cutting the hotel occupancy tax is a fiscally responsible move that will help draw international visitors back, support local businesses across every borough, and protect thousands of jobs. Our businesses need every advantage to stay competitive, and this tax reduction is a smart investment in the city's future," said Heather Mulligan, president and CEO of the Business Council of New York State.

"New York City's cultural institutions are essential to the tourism experience. Visitors come to the city for our museums and cultural institutions, to dine in our restaurants, shop at local businesses, and stay in our hotel rooms. In many ways, all of our sectors that are part of the tourism ecosystem thrive or fail together. Like our partners, we're still recovering from the long-term impacts of the pandemic. Reducing the hotel occupancy tax is a smart, targeted way to boost international travel and ensure our arts and cultural organizations continue to thrive in our vibrant, interconnected economy," said Coco Killingsworth, chair of the Cultural Institutions Group.

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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.