NYC Hotels Warn Trade War with Canada Puts Tourism Economy at Risk

NEW YORK, NY (08/24/2026) (readMedia)-- This weekend, Canadian Prime Minister Mark Carney announced that Canada will impose retaliatory tariffs on U.S. imports shortly after trade negotiations broke down, compounding economic headwinds for New York's hotel and tourism industries, which have already seen fewer international visitors this year. In response, the Hotel Association of New York City called on the federal government to reconcile the trade dispute to improve the fortunes of local businesses and workers, who are already suffering from a significant decrease in international tourism.

In 2025, New York had 26% fewer Canadian visitors - one of our most important tourism partners - resulting in a 28% decrease in spending. Canadians spent 14% less last year than they did before the pandemic, and the new tariff war threatens to make matters worse for an industry that supports more than 40,000 hotel workers and 400,000 hospitality workers while generating billions of dollars in annual tax revenue that helps fund essential public services.

This latest blow comes as the industry contends with major economic headwinds from travel restrictions, slowed revenue growth, persistent inflation, rising operating costs, and immigration crackdowns - including the recent revocation of Haitian TPS, which affects 1,200 Haitian hotel workers. Together, these challenges threaten a cornerstone of New York City's economy that is still struggling to recover from the pandemic.

According to a recent report from the New York State Comptroller, hotels are still struggling to recover from pre-pandemic losses, with 12.9% fewer workers, 2.4% fewer visitors, and hotel occupancy still lagging behind 2019 levels. The average daily rate (ADR) and RevPAR were also down compared to 2019 when adjusted for inflation. For 2026, occupancy remains below 2019 for every month except January where it was up by only one point. RevPAR is also lower than 2019 for the first half of this year, with an average of $252.62 in 2026 compared to $277.76 in 2019. Based on forward bookings, HANYC expects September to remain below 2019 as well.

HANYC is calling on the federal government to immediately strike a deal with Canada to encourage visitation from our northern neighbors, whose travel is essential to the success of New York City's tourism economy and the hotel industry that supports it.

"Our tourism economy cannot afford another year of trade wars with Canada that drive away our most important international visitors. Canadian visitors are critical to our small businesses, jobs and the wellbeing of our workers. We are already seeing a sharp decline in Canadian visitation this year on top of a steep drop last year that resulted in a 28% decrease in spending. The federal government must reach a deal with Canada and give travelers a reason to come back. If we fail to act, New York risks losing even more visitors from our number one tourism partner and economic activity our sector depends on," said Vijay Dandapani, President and CEO of the Hotel Association of New York City.