USA

NYC hotel and tourism business has long road to recovery: study

New York’s world-renowned lodge and tourism business has a steep climb to bounce again to its pre-pandemic glory days — with lodge enterprise journey income anticipated to be 55% decrease within the Massive Apple market this 12 months than in 2019, a sobering new business evaluation reveals.

The report by the American Resort & Lodging Affiliation and Kalibri Labs says lodge enterprise journey income throughout the US in 2022 is projected to be 23% beneath pre-pandemic ranges, ending the 12 months down greater than $20 billion in comparison with 2019.

These projections come after resorts misplaced an estimated $108 billion in enterprise journey income throughout 2020 and 2021 mixed.

However the New York lodge enterprise journey business is struggling essentially the most of any market within the nation — excluding San Francisco, the place lodge enterprise journey is predicted to be 68% decrease than in 2019, the report mentioned.

Different city hotel-tourism markets nonetheless affected by the COVID-19 blues embrace Washington, DC, the place enterprise is projected to be 54% decrease, Chicago 49%, Boston 47% and New Orleans 32% beneath 2019 ranges.

The New York state lodge enterprise journey market as an entire can be a laggard, with income anticipated to be 46% decrease than 2019.

People load luggage into their SUV in front of a midtown hotel on March 31, 2021 in New York City.
Solely San Francisco, the place lodge enterprise journey is predicted to be 68% decrease than in 2019, is projected to undergo greater than New York Metropolis.
John Lamparski/Getty Photos

That’s the second-worst restoration of any state apart from Wyoming, the place income will likely be 63% behind 2019, based on the survey.

“Whereas dwindling COVID-19 case counts and relaxed CDC pointers are offering a way of optimism for reigniting journey, this report underscores how powerful it is going to be for a lot of resorts and lodge staff to get well from years of misplaced income,” mentioned Chip Rogers, president and CEO of AHLA.

“The excellent news is that after two years of digital work preparations, People acknowledge the unrivaled worth of face-to-face conferences and say they’re prepared to start out getting again on the highway for enterprise journey.”

A screenshot of the report.
The projections come after resorts misplaced an estimated $108 billion in enterprise journey income throughout 2020 and 2021 mixed.
AHLA / Kalibri Labs

The COVID outbreaks in 2020 and 2021 led to shutdowns and disruptions in journey and the continued upheaval and gradual restoration may deprive metropolis coffers of doubtless billions of {dollars} in revenues that assist pay for public providers, equivalent to policing and faculties.

New York Metropolis hosted a record-breaking 66.6 million guests in 2019 with its museums, nightlife and theater, eating places, commerce reveals and sporting occasions such because the marathon and US Open tennis event.

However that determine plummeted 67% to 22.3 million guests through the COVID-19 outbreak the next 12 months, based on the state comptroller’s workplace.

A screenshot of the report.
Solely three cities within the report had been anticipated to see a constructive tourism charge in comparison with 2019.
AHLA / Kalibri Labs

Tourism-related tax income accounted for 59% of the town’s $2 billion decline in tax collections through the first 12 months of the pandemic, plummeting by about $1.2 billion.

“We estimate that the hotel-related occupancy & gross sales tax that the Metropolis misplaced in 2020 was roughly $920 million and $560 million in 2021,” Vijay Dandapani, president and CEO of the New York Metropolis Resort Affiliation, instructed The Submit.

The variety of lodge business staff completely employed has plummeted by 20,000, from 55,000 to 35,000, he mentioned.

“Lots of these are good union-paying jobs,” mentioned Dandapani.

Traffic is seen in Times Square on March 31, 2022.
In 2019, New York Metropolis hosted a record-breaking 66.6 million guests.
Corbis by way of Getty Photos

Pre-pandemic, tourism accounted for 7.2% of complete non-public sector employment within the Massive Apple and 4.5% of private-sector wages. Tourism not directly supported 376,800 jobs in 2019, based on the comptroller’s workplace.

Dandapani of the New York Metropolis Resort Affiliation confirmed that each occupancy and charges per room are nonetheless method down from pre-pandemic ranges.

“New York Metropolis lodge jobs are nonetheless over 30% beneath 2019 ranges principally as a result of each occupancy and charge haven’t recovered,” mentioned Dandapani.

A hotel guest walks through the lobby of The Pierre, A Taj Hotel, New York on September 28.
In January, Gov. Kathy Hochul’s funds forecast projected that New York’s lodge and hospitality business received’t doubtless get well all of the job losses from the pandemic till 2026.
ANGELA WEISS/AFP by way of Getty Photos

“The principal causes are an absence of revival of enterprise journey the place the typical charge is almost two occasions that of a vacationer visitor with an extended period of keep,” he mentioned.

However Dandapani complained the federal government has been a part of the issue, not the answer.

“Another excuse is the federal authorities’s continued insistence of a 24-hour COVID take a look at (regardless of a vaccination requirement) for anybody getting into the US, which is an enormous disincentive for overseas enterprise and vacationer journey,” he mentioned.

A guest leaves The Pierre, A Taj Hotel, New York on September 28, 2020.
Tourism-related tax income accounted for 59% of the town’s $2 billion decline in tax collections through the first 12 months of the pandemic.
ANGELA WEISS/AFP by way of Getty Photos

Gov. Kathy Hochul’s funds forecast launched in January warned that New York’s lodge and hospitality business received’t doubtless get well all of the job losses from the pandemic till 2026.

Final fall, Hochul steered a bit of her $450 million tourism revival program for New York into ramping up employment on the metropolis’s 300 resorts — which employed some 50,000 staff pre-pandemic.

The plan included a $100 million Tourism Employee Restoration Fund, which earmarked a one-time cost of $2,750 to as much as 36,000 lodge staff and different tourism business staff who had been eligible for expired unemployment advantages.

One other $100 million is geared toward spurring resorts and different tourism-reliant companies that suffered job and income losses to rehire staff by providing $5,000 grants to subsidize every full-time employee added to the payroll and $2,500 for part-time staff.

Show More

Related Articles

Back to top button