NYC Hotels Strained Ahead of FIFA World Cup, New White Paper Finds

NEW YORK, NY (05/06/2026) (readMedia)-- New York City's vital hotel industry is in trouble, according to a new white paper by JLP+D, threatening our critical tourism economy as we approach what could be a very disappointing World Cup.

View the white paper here.

Hotels support 388,000 jobs across the tourism sector, contribute $79 billion in total economic impact to the city, and generate $6.8 billion in tax revenue, according to the white paper. But slow revenue growth, rising costs, tariffs, and federal policies curbing tourism are threatening the livelihoods of more than 40,000 hotel workers-the majority of whom are immigrants and unionized-and nearly 400,000 New Yorkers who rely on the tourism industry.

The white paper notes that hotels have already lost thousands of jobs and more than 20,000 hotel rooms since COVID. Revenue, when adjusted for inflation, is far below its pre-pandemic peak. Tourism to New York City has fallen sharply, with more than 2 million fewer visitors than predicted last year and projections for 2026 showing more than half a million fewer visitors than its peak in 2019.

Hotel bookings for the World Cup have, thus far, made little to no difference to projected hotel occupancy and are pacing similar to the same period last year. The Iran war has further reduced business by 10–15%, especially among international visitors, who spend four-times more than domestic travelers. To make matters worse, the hotel union has raised the specter of a strike, which would further reduce travel and tourism revenue.

Despite these challenges, hotels remain among the city's highest-paying employers. Room attendants' pay starts at around $73,000 before tips and overtime, with experienced workers earning well over $100,000, excluding the value of full benefits and pensions, the report found. For example, a hotel union room attendant with experience can out-earn first-year police officers, firefighters, sanitation workers, correction officers, social workers, paramedics, EMTs, and teachers. The paper also notes that union hotel employees can earn up to $13 more per hour than comparable workers in other NYC unions.

Without immediate action to rein in costs, support tourism workers, and stabilize the industry, the city risks missing a once-in-a-generation opportunity while further weakening a cornerstone of its economy. As the paper warns, "The industry's fragility must be factored into NYC's policy design, reducing cost pressures while strengthening tourism to support rising demand".

"If the City is to maximize the economic benefits of the upcoming World Cup, our hotels must be able to attract as many visitors as possible to fill rooms. This white paper makes clear that hotels-which provide some of the best wages and benefits in the country-are under enormous pressure and need relief to offset the many challenges facing our industry. Supporting hotels means supporting the tens of thousands of workers they employ and the wider tourism sector that drives New York City's economy," said Vijay Dandapani, President and CEO of the Hotel Association of New York.

"The small businesses the Caribbean American Chamber of Commerce represents, and the many workers from immigrant communities who have found family-supporting careers in the tourism and hospitality industries, must be able to get the full economic benefits of the World Cup. A union strike would be devastating for them and the nearly 400,000 New Yorkers who depend on the hospitality industry for work, and the thousands of small business owners across the city who operate the restaurants and stores visitors go to," said Dr. Jean G. Joseph, President of the Caribbean American Chamber of Commerce.

"The World Cup represents a unique opportunity for businesses and workers in New York that rely on tourism and a strong hotel industry-particularly the smaller businesses that have the most to gain and least economic security. Neighborhood restaurants and bars, retail shops, and other small businesses are preparing to welcome a global audience, and their success depends on strong visitor turnout and hotel occupancy across the city. Any disruption to the hospitality sector at this critical moment from a hotel strike or lack of support from City officials would put those opportunities at risk, affecting businesses that help drive New York City's economy, as well as the workers and families they support," said Frank Garcia, Chair of the New York Multicultural Business Coalition.