According to the latest report released by the New York City Tourism Bureau, it is estimated that New York City will receive 12.1 million foreign tourists in 2025, lower than the predicted 14.6 million from last December. Officials expect the total number of visitors in New York City in 2025 to reach 64.1 million, a decrease of 3.5 million from previous forecasts. It is anticipated that the number of international tourists visiting New York City will significantly decrease. The Hotel Association of NYC and The Hotel and Gaming Trades Council have jointly sent a letter to the city government urging a reduction in the Hotel Occupancy Tax to alleviate the pressures on the hotel and tourism industry.
The President of Tourism Economics, Adam Sacks, stated to the media that the anticipated decline in the number of foreign tourists is a result of federal government tariffs and immigration enforcement policies.
Travel bans and lockdown measures during the pandemic had severely impacted New York City’s leisure and hotel industry. The New York economy has shown strong signs of recovery after the pandemic, with the city’s Comptroller, Brad Lander, stating that international tourists’ spending reached $23 billion in 2024, and the decrease in foreign tourists would harm the city’s economy. Tourism officials mentioned that foreign tourists usually stay longer and spend more than domestic tourists.
New York hotel owners are hoping to lower the local hotel occupancy tax, which currently stands at 5.875%. This tax, mandated by the city government, is paid by hotel guests and may add a significant surcharge to their bills. In their letter to the city government, they urged for the tax rate to be reduced to 3% in this year’s municipal budget.
However, the Chair of the Hotel Chinese Association in the United States, Joy Chen, stated in an interview with this publication that, “Lowering the hotel occupancy tax is helpful to the tourism industry, but it is only a small part and should not affect tourists’ motivation to travel. The most important factor is the overall environment and climate.”
A statement released by Julia Agos, a representative of New York City Council Speaker Adrienne Adams, on June 2nd, mentioned that budget negotiations are underway, and the City Council will continue to work on a budget that enhances our city’s strength and supports all New Yorkers.