New York City's tourism industry was devastated by the pandemic, but a new report from State Comptroller Thomas DiNapoli finds that visitor spending and tax revenues have already exceeded pre-coronavirus levels and the city is close to a full recovery.
But despite encouraging economic signs, international and business travel has been slow to recover, and employment in the tourism and entertainment industries has lagged behind other sectors, DiNapoli warned.
According to the report, 62.2 million tourists visited the city last year, down about 7% from the record high of 66.6 million in 2019. But even with fewer tourists, visitors to the five boroughs spent more than $48 billion last year. This was an increase of 1.3% from 2019 due to the impact of rising prices, such as the average daily hotel room rate exceeding $300.
“The industry's recovery will not be complete until international and business travelers fully return and local jobs fully recover,” DiNapoli said. “Our city and state leaders must focus on keeping New York an attractive and safe destination for individuals and families around the world.”
Statistics show that the increase in tourists is expected to drive sales and other tourism-related tax revenues to a record $4.9 billion in fiscal 2024, up 16 percent from four years ago.
DiNapoli said the outlook for next year is bright as the city expects to welcome a record 68 million visitors.
A spokesman for Mayor Eric Adams said in a statement that the city expects 65 million tourists in 2024.
“Our city went from having the fourth lowest number of tourists in the past 20 years to having the fourth highest number of tourists on record last year,” the statement said. “New York City is the most popular destination for international tourists, and we are committed to keeping tourism strong.”
New York City will remain the nation's top tourist destination, with 33.5 million overnight visitors in 2023, surpassing Las Vegas and Los Angeles, which had 26.4 million and nearly 22 million, respectively, last year. Overnight visitors are projected to grow more than 18 percent to 39.7 million in 2025, according to the report.
Domestic travelers, particularly those visiting for leisure, are driving tourism's recovery, the report said. Domestic urban visitor numbers were 50.6 million last year, down 4.7% from 2019 but up 7% from 2022, according to the Comptroller General.
However, international travel, both leisure and business, which accounts for 20% of the city's visitors, has fared less well, remaining 14.1% lower than in 2019.
This decline appears to be related to changes in international travel patterns.
China, which accounted for the largest share of Hong Kong's overseas spending in 2019, now ranks ninth, due in part to the country's strict anti-coronavirus lockdown.
The report says the UK is now in top spot, with international spending on the country reaching $1.9 billion, while average tourist arrivals have fallen by nearly $2,000 per visit. DiNapoli said France, Australia, Canada and Germany were the top five countries for international spending.
The auditor said business travel has also lagged compared to leisure travel, largely due to the impact of remote work.
For example, figures show international business travel to the city fell from 3.4 million in 2019 to 2.3 million last year.
While the city's tourism industry has recovered from the pandemic, the workers who support it have yet to reap the benefits.
Employment in tourism retail is down more than 9,100 jobs, or 16.8%, since 2019, and employment in restaurants, bars, hotels and entertainment venues is down more than 16,500 jobs, or nearly 10%, according to the data.
Meanwhile, average salaries in both industries lag behind wages in other private sectors.
