HANYC: NYC Hotel Tax Hike Would Devastate Tourism Industry Costing City Jobs and Businesses
Lump of Holiday Coal for City’s Economy Would Deal the City a Major Blow
Mr. Spinnato added, "Any tax increase would be gravely detrimental to the city’s economic health. This increase could bring us back to the dark days of the 1990’s when convention planners – outraged by the fact that city policymakers would take advantage of our visitors to fix a budget hole – boycotted our area. In addition, local New York companies are significant hotel users and increased taxes will hurt those businesses."
Even a one percent increase on the hotels would cause:
- A loss of more than $533 million in room sales and associated visitor spending;
- A loss of 3,716 jobs in the hotel industry and businesses supported by hotels; and
- A loss of more than $162 million in wages at hotels and businesses supported by hotels.
Sean Hennessey, CEO of Lodging Advisors, LLC and one of the foremost hotel industry analysts in the United States, compiled the data for the Hotel Association based on a variety of sources including the American Economics Group, NYC & Company, Reuters and the Smith Travel Report.
“This tax would make New York City’s combined hotel rate the second highest in the country after Houston, Texas. Instead of generating new revenues, any increase in taxes could have the opposite effect. More taxes on top of a strengthening U.S. dollar could divert tourists and travelers elsewhere or cause them to shorten their stays,” said Mr. Hennessey.
The current 14.54 percent rate includes a five percent city hotel tax and factors in as percentage based on an average room charge the $2.00 per night New York City hotel occupancy tax and the $1.50 Javits Center surcharge. The City Council proposal would bring the city hotel tax to nearly six percent.
Established in 1878, the Hotel Association of NYC is one of the oldest professional trade associations in the nation. Its membership includes more than 242 of the finest hotels in New York City, representing more than 69,000 rooms and 32,000 employees. It is an internationally recognized leader of New York City's $29 billion tourism
Linden Alschuler & Kaplan, Inc., Public Relations