Hotel Industry to Warn Council: World Cup Economic Boom at Risk Without Support for Hotel Sector

NEW YORK, NY (02/27/2026) (readMedia)-- Ahead of the World Cup, the hotel industry is warning that a contracting industry will make it difficult for the city to capitalize on its biggest tourism draw in years. The hotel industry supports tens-of-thousands of hotel workers--the vast majority of whom are foreign-born and unionized-and produces close to $4 billion in annual tax revenue that funds essential public services. But persistent inflation, tariffs, declining tourism, and rising operating costs now threaten an essential New York industry that is a cornerstone of the city's economy and backbone of its tourism sector.

2 million fewer visitors traveled to New York in 2025 than projected, and a half-million fewer visitors expected this year than in 2019. New hotel development is also down 50% as higher borrowing costs, taxes and onerous local regulations are making it harder to finance and build new properties, while dozens of struggling union hotels have been forced to shutter and converted to other uses in recent months, stripping New York of vital hotel capacity. These headwinds have already cost thousands of city hotel workers-24% of the pre-pandemic workforce-their jobs, and could cost the city billions of dollars in economic revenue and thousands of other jobs dependent on the hotel industry at a critical moment when New York will once again be hosting the world.

Vijay Dandapani, CEO and President of HANYC will testify in front of the City Council's Economic Development Committee at a hearing on the World Cup today to raise these profoundly important concerns and is available for interviews.