Hospitality Industry and Council Members Launch StayNYC Campaign to Spur Economy, Lower the Tax on Tourists

NEW YORK, NY (04/07/2025) (readMedia)-- Today, the Hotel Association of New York (HANYC) and Council Members Amanda Farías and Kevin Riley launched an effort to lower the tax on tourists in the City budget and unleash New York's full potential as a top tourist destination.

The hotel industry is facing huge headwinds - tariffs, inflation, borrowing costs - that could set it back once again as it still struggles to fully recover from COVID. It also has some of the highest tax rates in the nation, keeping the industry from boosting occupancy rates, opening more hotels, supporting its workforce and creating jobs, and driving demand to fill rooms, even after a record number of tourists flocked to the city last year.

Reducing the tourist tax on hotel rooms from a whopping 5.875% to 3% in the upcoming budget will boost hotel stays by thousands of room nights per month, attracting a wave of new visitors. This influx will generate significantly more dollars in tax revenue to support essential services for hardworking New Yorkers and create thousands more good-paying jobs.

Learn more at StayNYC.

As the backbone of the tourism economy, the hotel industry provides the city with $22 billion in tourism revenue and $3.2 billion for schools and hospitals. It is also one of the largest employers of low-income and immigrant New Yorkers and people of color, employing over 50,000 each year in jobs with good wages and benefits that provide a pathway to the middle class.

On top of the 5.87% hotel room occupancy tax – a tax on tourists – hotel guests pay a 9% sales tax, $2 room fee, a commuter surcharge of 0.375%, and a $1.50 convention center fee per room per day. The hotel industry also pays almost double the property tax as other major markets, driving up operating costs and preventing new hotels from going up to address demand. According to a recent study, the occupancy tax alone has a particularly negative impact on hotels' ability to secure group bookings, which in turn leads to lower revenue. The coalition is calling on the City to reduce the tax on tourists in the upcoming budget to ensure tourists stay and spend here.

"Our industry was hit hard by COVID shutdowns and is taking a hit again because of the new tariffs. We need every opportunity to boost occupancy rates and far surpass pre-pandemic visitor levels so we can keep our doors open, our employment up, and our tourism industry booming," said Vijay Dandapani, CEO and President of HANYC. "Investing in the hotel industry now by lowering the tax on tourists is good for hotels, workers, and the tourism economy."

"Unparalleled political and economic forces are quickly deterring tourists from visiting our city, which will have a devastating impact on the lifeblood of the tourism industry – our hotels. We must lower the tax on tourists now to meet the moment and give hotels like mine a fighting chance to draw in international tourists from around the globe that we depend on," said John Fitzpatrick, President and CEO of Fitzpatrick Hotel Group.

"The hotel industry is still struggling to recover from COVID fully and is now facing even more challenges in a city that was already expensive to do business in and visit. What the hotel industry is asking for is not a big lift. The tax burden on hotels and their workers is too high, and we need to give them some relief by lowering the tax on tourists," said Council Member Amanda Farías, Chair of the Committee on Economic Development.

"Last year, the Mayor's office estimated that the billions in tax revenue generated by tourists visiting the city saved every New York household $2,000. By reducing the tax on tourists, filling our hotel rooms, and even opening new hotels, we can put even more money into New Yorkers' pockets and create even more great jobs," said Council Member Kevin Riley.

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About HANYC: HANYC is the oldest hotel association in the U.S. 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.