NYC hotel owners and workers seek tax relief due to declining tourism linked to a drop in business from Trump-era impacts.

President Trump’s immigration policies and economic strategies have led to a noticeable decline in international tourism to New York City. This phenomenon has raised significant alarms within the local hotel industry, prompting hotel owners and labor groups to collectively address their concerns to Mayor Eric Adams and the City Council. They are seeking relief measures, particularly a reduction in the local hotel occupancy tax, which is currently set at 5.875%.

In a recent communication addressed to Mayor Adams and city council leaders, both the Hotel Association of New York and the Hotel and Gaming Trades Council urged a reduction of the occupancy tax to 3% as part of the current municipal budget negotiations. The hotel sector typically experiences divergent interests between owners and labor groups; however, the current situation has resulted in an unusual alliance between these two parties.

The letter indicates that lowering the hotel occupancy tax could serve as an effective strategy for reviving international tourist interest in New York City. It was emphasized that the tax significantly influences tourists’ decisions regarding hotel stays and overall trip duration. The joint correspondence stated that a tax reduction would enhance hotel occupancy rates, particularly for group bookings that are currently being diverted to other destinations with lower tax liabilities.

As ongoing challenges in international tourism persist, the urgency for the city to lower the hotel room occupancy tax is underlined in their correspondence. It is noted that international visitors typically expend four times more than their domestic counterparts, making their return vital for the city’s economic recovery.

Reports from the City’s Tourism and Conventions agency forecast a significant decline, expecting approximately 800,000 fewer foreign visitors this year compared to the previous year. A study from City Comptroller Brad Lander’s office supports these claims, projecting a decrease in local tourism spending by billion this year alone. Experts attribute this downturn largely to rising anti-American sentiments globally, exacerbated by the Trump administration’s aggressive trade policies and immigration reforms.

In response to these developments, a representative for City Council Speaker Adrienne Adams acknowledged that budget discussions are ongoing, with an emphasis on crafting a budget that strengthens support for all New Yorkers. While the Mayor’s office has yet to respond formally, it is understood that the city is in the critical final stages of budget negotiations ahead of the July 1 start of the fiscal year.

Additionally, the Hotel Association has embarked on a lobbying campaign to advocate for the proposed tax cut, hiring one of the city’s largest government relations firms to aid their cause. The focus of this lobbying effort includes engaging key members of the Adams administration, underscoring the need for a concerted push to influence the upcoming fiscal budget.

As the pressures on the hospitality sector mount, local leaders are increasingly recognizing the need for strategic interventions to restore New York City’s status as a premier international destination. Media News Source.