NYC Braces for Billions in Losses as International Tourism Plummets, Spurring Support for Tourist Tax Cut

NEW YORK, NY (04/21/2025) (readMedia)-- In a new report, the New York City Comptroller warns that the sharp decline in international tourism could have a devastating economic impact without swift intervention, highlighting the urgent need to reduce the city's tourist tax - currently the highest among major U.S. cities. City Council Members are backing a proposal to lower the hotel occupancy tax, while Mayor Adams has signaled that his administration is actively evaluating the potential benefits of such a move.

The city is now on track to lose an enormous $9 billion in economic activity if the number of international tourists drops by 25% this year, and the hospitality industry could lose up to 10% of its workers, according to the report. Right now, travel from the UK is down 40%, while 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, a tax on tourists, from a whopping 5.875% to 3% in the upcoming city budget. As international travel falters, cutting this tax on tourists will help draw visitors back - boosting hotel occupancy rates, preserving jobs and keeping hotels open, and ultimately increasing city revenue.

"International tourists, particularly from Canada and the UK where we're seeing the sharpest decline in visitors, are key to filling hotel rooms and driving our city's economy. We can't afford to keep losing more of them," said Vijay Dandapani, CEO and president of HANYC. "Cutting the tourist tax is a direct investment in getting more travelers through our doors - keeping our hotels open, workers employed, and our tourism economy strong."

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."

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

HANYC recently launched the StayNYC calling for City Hall and the City Council to reduce the tourism tax. The effort is supported by Council Members Amanda Farías and Kevin Riley, as well as HTC and leaders of the tourism industry.

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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.