New York City’s tourism industry is experiencing potential turbulence amidst declining stock markets and rising geopolitical tensions, raising concerns among industry experts and stakeholders.
Recent data reveals troubling trends, as hospitality executives note significant dips in hotel bookings and foot traffic at major attractions.
As of April 7, only 22.5% of the city’s hotel rooms were booked for July, representing a startling 11.5% decrease compared to the same point in 2022 when bookings stood at 25.4%.
While there is still time for travelers to secure last-minute accommodations, Jan Freitag, CoStar’s national director of hospitality, remarks on the notable shift in consumer sentiment, indicating increased anxiety among potential visitors.
“It’s too early to label this a prolonged downturn,” Freitag stated; however, he pointed out that the current situation is reminiscent of trends observed during 2020.
Looking ahead, the decline in bookings is extending into the upcoming holiday season, with hotel reservations for October, November, and December showing decreases of 20.6%, 19%, and 19%, respectively.
Despite these setbacks, the city’s tourism bureau, NYC Tourism + Conventions, remains optimistic about recovery, projecting the ability to exceed the 66.6 million visitors recorded in 2019.
For 2024, the bureau estimates that 12.9 million international visitors have arrived in the city, slightly below the 13.5 million in 2019.
Julie Coker, President and CEO of NYC Tourism + Conventions, emphasized the organization’s commitment to adapting to the changing landscape and marketing NYC globally.
Nevertheless, challenges persist, including trade wars and complications for overseas travelers at U.S. borders, which are impacting visitor numbers.
For instance, ticket sales for the Statue of Liberty and Ellis Island have dropped by 5% through April, as reported by Mike Burke, Chief Operating Officer of Statue City Cruises.
Burke noted that such declines are echoed across the industry, as other attractions are also experiencing decreased attendance.
Foot traffic in Times Square saw only a modest increase of 1.8% through April 16, falling far behind the 7.3% growth observed in the same timeframe last year, as recorded by the Times Square Alliance.
At the Park Lane New York, managing director Niles Harris expressed concerns over attracting visitors from key markets including the United Kingdom, Germany, Mexico, and Brazil this summer.
“We are starting to see a pullback from those countries,” Harris stated.
He noted a surge in inquiries from guests seeking promotions and discounts, reflecting a shift in consumer priorities toward value.
“People are more value conscious than they were a year ago,” Harris added, highlighting a change in travelers’ demands for better deals.
In 2024, New York metro area airports experienced their highest passenger levels to date, according to the Port Authority of New York and New Jersey.
Additionally, the city’s hotel occupancy rate stood at 84.3% for the year, the leading rate among the top 25 U.S. markets, as per CoStar data.
However, recent trends have shown fluctuating occupancy rates, hovering at 83.8% as of April 12, marking a slight increase from last year.
In contrast, March occupancy declined by 1.1% after recording gains in the earlier months of the year.
A hotelier, who preferred not to be named, noted a slowdown in bookings particularly from Europe, Canada, and Asia, emphasizing the international segment’s critical importance to New York City’s tourism.
The challenges are not exclusive to New York City; nationwide statistics indicate that the number of non-citizen flight arrivals to the U.S. fell nearly 10% in March, according to the International Trade Administration.
Notably, reserves for Canadian flights to the U.S. plummeted by an alarming 70% through September compared to the previous year, as reported by OAG Aviation Worldwide.
Goldman Sachs economists Joseph Briggs and Megan Peters attributed the decline in part to recent U.S. tariff announcements and a tougher diplomatic stance toward traditional allies, affecting global perceptions of the United States.
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