World Cup's Economic Promise at Risk Without Action to Support NYC Hotels

NEW YORK, NY (02/27/2026) (readMedia)-- At the New York City Council Economic Development Committee hearing today, Vijay Dandapani, President and CEO of HANYC, testified on the economic importance of the 2026 FIFA World Cup and the hundreds-of-thousands of hospitality workers the New York City hotel industry supports-warning that a contracting industry will make it difficult for the city to capitalize on its biggest tourism draw in years.

Dandapani emphasized that New York's hotel industry-a cornerstone of the city's economy and backbone of its tourism sector-supports over 40,000 hotel jobs and produces close to $4 billion in annual tax revenue that funds essential public services. But the industry continues to face serious challenges, including persistent inflation, rising operating costs, tariffs, and a prolonged tourism slowdown. 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.

With 2 million fewer visitors in 2025, New York's hotel industry is already reeling from closures and job losses. 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. An additional half a million fewer visitors expected this year than in 2019 threatens to push more hotels over the edge. Meanwhile, new hotel development has fallen 50% as higher borrowing costs, taxes, and local regulations make financing new properties more difficult. Now, limited hotel room availability is further squeezing growth.

As New York prepares for the FIFA World Cup, Dandapani made clear to the Council Committee that without immediate action to rein in costs, support hotel workers, and stabilize the industry, the city risks missing a once-in-a-generation economic opportunity while further weakening a cornerstone of its economy. The 2026 World Cup presents a rare opportunity to stabilize and strengthen the industry, but only if the City takes steps to ensure visitors choose to stay in New York City hotels rather than outside the city.

"Even a perfectly executed World Cup will not solve the underlying issues which are putting the hotel industry in such financial straits-and unless those issues are addressed, New York will miss out on the tourism opportunity of the decade. No industry can remain profitable if expenses outpace income, and no single event can overcome this long-term trend. We hope to work with the Council to fix these issues so that the World Cup can be part of a rebirth of the city's hotel industry," said Vijay Dandapani, President and CEO of the Hotel Association of New York.