New Tariffs Whack Strained NYC Hotel Industry

NEW YORK, NY (07/24/2026) (readMedia)-- Today, the federal government imposed tariffs on more than 80 countries, a move that will further drive down international tourism to the city, requiring an urgent response by local lawmakers to lower costs, the Hotel Association of New York City warned.

Despite strong numbers in July driven by the World Cup, New York's hotel industry was already projecting an overall drop in international tourism this year-as well as lower revenue than before the pandemic.

"We were already facing mounting economic challenges, and these new tariffs will only make it harder to attract international visitors, who spend on average four-times more than domestic travelers. Six years after the pandemic began, city hotels are still struggling to recover. We can't afford any more setbacks. The hotel industry, which is the backbone of our tourism economy, needs urgent support from the City government to lower costs so we can continue providing nation-leading compensation for our workers and billions in tax revenue for essential public services," said Vijay Dandapani, President and CEO of the Hotel Association of New York.

Despite a last-minute, unexpected one-off bump in revenue on the two days leading up to the World Cup final, the industry continues to face many challenges. According to a recent report from the New York State Comptroller, hotels are still struggling to recover from prepandemic 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 August and September to remain below 2019.

Now, new tariffs on Canada-a major source of business for city hotels-and over 80 other countries, coupled with visa delays and other travel restrictions, slowed revenue growth, persistent inflation, and rising operating costs, threaten a cornerstone of New York City's economy that supports more than 40,000 hotel workers and 400,000 hospitality workers while generating billions in annual tax revenue that helps fund essential public services.