New York’s hotel and tourism industry has a long road to recovery: study

New York’s world-renowned hotel and tourism industry is on a strong upswing to recover from its pre-pandemic glory days, with hotel business travel revenue expected to be 55% lower in the Greater market. Apple this year than in 2019, a sobering new industry. analysis reveals.

Report from American Hotel & Lodging Association and Kalibri Labs says U.S. hotel business travel revenue in 2022 is projected to be 23% below pre-pandemic levels, which will end the year with a decrease of more than $20 billion compared to 2019.

These projections come after hotels lost an estimated $108 billion in business travel revenue during 2020 and 2021 combined.

But New York’s hotel business travel industry suffers the most of any market in the country, with the exception of San Francisco, where hotel business travel is expected to be 68% lower than in 2019, according to The report.

Other urban hotel tourism markets still suffering from the COVID-19 slump include Washington, DC, where business is forecast to be down 54%, Chicago down 49%, Boston down 47% and New Orleans down 32%. from 2019 levels.

The New York State hotel business travel market as a whole is also lagging, with revenue expected to be 46% lower than in 2019.

People load luggage into their SUV in front of a downtown hotel on March 31, 2021 in New York City.
Only San Francisco, where hotel business travel is expected to be 68% lower than in 2019, is projected to suffer more than New York City.
John Lamparski/Getty Images

That’s the second-worst recovery of any state other than Wyoming, where revenue will be 63% below 2019, according to the survey.

“While the decline in the number of COVID-19 cases and relaxed CDC guidelines provide a sense of optimism to revive travel, this report underscores how difficult it will be for many hotels and hotel employees to recover from years of lost business. revenue,” said Chip Rogers, president. and CEO of AHLA.

“The good news is that after two years of virtual work arrangements, Americans recognize the unmatched value of face-to-face meetings and say they are ready to start getting back on the road for business travel.”

A screenshot of the report.
The projections come after hotels lost an estimated $108 billion in business travel revenue during 2020 and 2021 combined.
AHLA Laboratories / Kalibri

The COVID outbreaks in 2020 and 2021 led to closures and travel disruptions and the ongoing turmoil and slow recovery could deprive city coffers of potentially billions of dollars in revenue that helps pay for public services, such as the police and the schools.

New York City welcomed a record 66.6 million visitors in 2019 to its museums, nightlife and theater, restaurants, trade shows, and sporting events like the US Open marathon and tennis tournament.

But that number plummeted 67% to 22.3 million visitors during the COVID-19 outbreak the following year, according to the state comptroller’s office.

A screenshot of the report.
Only three cities in the report were anticipated to see a positive tourism rate compared to 2019.
AHLA Laboratories / Kalibri

Tourism-related tax revenue accounted for 59% of the $2 billion decline in city tax collections during the first year of the pandemic, plummeting by about $1.2 billion.

“We estimate that the hotel-related sales and occupancy tax the City lost in 2020 was approximately $920 million and $560 million in 2021,” Vijay Dandapani, president and CEO of the City Hotel Association, told The Post. New York City.

The number of permanently employed hotel industry workers has plummeted by 20,000, from 55,000 to 35,000, he said.

“A lot of those are good jobs paid by unions,” Dandapani said.

Traffic is seen in Times Square on March 31, 2022.
In 2019, New York City welcomed a record 66.6 million visitors.
Corbis via Getty Images

Before the pandemic, tourism represented 7.2% of total private sector employment in the Big Apple and 4.5% of private sector wages. Tourism indirectly supported 376,800 jobs in 2019, according to the Comptroller.

Dandapani of the New York City Hotel Association confirmed that both occupancy and room rates are still well below pre-pandemic levels.

“New York City hotel jobs are still 30% below 2019 levels, primarily because both occupancy and the rate have not recovered,” Dandapani said.

A hotel guest walks through the lobby of The Pierre, A Taj Hotel, New York, on September 28.
In January, Governor Kathy Hochul’s budget forecast projected that New York’s hotel and hospitality industry likely won’t recover all of the jobs lost to the pandemic until 2026.
ANGELA WEISS/AFP via Getty Images

“The main reasons are the lack of revival of business travel, where the average fare is almost double that of a tourist with a longer stay,” he said.

But Dandapani complained that the government has been part of the problem, not the solution.

“Another reason is the federal government’s continued insistence on a 24-hour COVID test (despite the vaccination requirement) for anyone entering the US, which is a huge disincentive for business and tourist travel. abroad,” he said.

A guest leaves The Pierre, A Taj Hotel, New York, on September 28, 2020.
Tourism-related tax revenue accounted for 59% of the $2 billion decline in city tax collections during the first year of the pandemic.
ANGELA WEISS/AFP via Getty Images

Governor Kathy Hochul’s budget forecast released in January warned that New York’s hotel and hospitality industry likely won’t recover all of the jobs lost to the pandemic until 2026.

Last fall, Hochul directed a portion of his $450 million tourism revival program for New York to boost employment at the city’s 300 hotels, which employed about 50,000 workers before the pandemic.

The plan included a $100 million Tourism Workers Recovery Fund, which provided a one-time payment of $2,750 to up to 36,000 hotel and other tourism industry workers who were eligible for expired unemployment benefits.

Another $100 million is intended to spur hotels and other tourism-dependent businesses that suffered job and income losses to rehire workers by offering $5,000 grants to subsidize each full-time worker added to payroll and $2,500 for part-time workers.

Leave a Comment