New York City has seen a resurgence in tourism revenue, eclipsing figures from before the COVID-19 pandemic, thanks to a notable increase in domestic visitors. This has helped compensate for fewer international and business travellers. According to a report by State Comptroller Thomas DiNapoli released last Thursday, the city welcomed 62.2 million tourists last year. Although this number is slightly lower than the 66.6 million visitors in 2019, these tourists are projected to bring in a historic $4.9 billion in sales and other tourism-related taxes during the current fiscal year. This represents a 16% increase from 2020, fueled partly by the heightened prices of hotel accommodations and other services.
The COVID-19 pandemic, which started in early 2020, had a crippling effect on the United States’ most populous city, causing thousands of deaths, ravaging the commercial and retail sectors, and prompting a mass exodus to the suburbs and other states. Despite these challenges, the city has been on a gradual economic recovery, with tourists returning for Broadway shows, museum visits, and other attractions.
Tourism authorities had initially aimed to surpass pre-pandemic visitor numbers this year. However, the slower return of international tourists has led to a revised forecast, now aiming for 68 million visitors by 2025, per DiNapoli’s statement. He emphasized that the industry’s complete recovery hinges on the total return of international and business travellers. DiNapoli urged city and state leaders to ensure New York remains an attractive and safe destination for people and families worldwide.
International tourists, who typically account for about 20% of the city’s yearly visitors, experienced an 82.2% decline in 2020 to 2.4 million due to travel restrictions, particularly affecting visitors from China, where the virus was first detected. Their numbers recovered to 11.6 million last year but still fell short of pre-pandemic levels by 14.1%.
In contrast, domestic tourism has been leading the recovery, with 50.6 million U.S. visitors last year, marking a 7% increase over 2022. Business travel, including domestic and international journeys, has been slower to bounce back. It dropped to 400,000 in 2021 from 3.4 million in 2019 and increased to about 2.3 million.
Furthermore, according to DiNapoli, the New York City tourism sector is currently down by approximately 30,000 jobs, or 10.4%, compared to its pre-pandemic state.