New York City’s tourism tax revenue has soared past pre-pandemic figures, fueled by a rise in domestic visitors. In 2023, 62.2 million tourists visited the city, generating a record $4.9 billion in sales and tourism-related tax revenue, a 16% increase from 2020, according to a report by State Comptroller Thomas DiNapoli.
Economic recovery amid challenges
Although the total number of visitors fell from 66.6 million in 2019, the economic impact has been substantial, driven by higher prices for hotels and services. The city’s recovery from the COVID-19 outbreak, which devastated the office and retail markets, has seen a steady return of visitors to Broadway, museums, and other attractions.
Tourism officials had aimed to exceed pre-pandemic levels this year, but the slower-than-expected return of international travelers has pushed the forecast to 2025 when the city expects 68 million visitors. “The industry’s full recovery won’t be complete until we see a full return of international and business travelers,” DiNapoli stated, emphasizing the need for New York to remain a desirable and safe destination.
Impact of international and business travel
International visitors, who constitute about 20% of the city’s annual tourists, have seen a significant rebound to 11.6 million in 2023 from a steep decline in 2020, though still down 14.1% from pre-pandemic numbers. Domestic tourism led the recovery, with 50.6 million U.S. visitors in 2023, a 7% increase from 2022. Business travel remains sluggish, recovering from 400,000 in 2021 to about 2.3 million, still below 2019 levels.
Despite the positive revenue figures, the tourism industry in New York City is still down by about 30,000 jobs compared to before the pandemic. However, New York remains the top U.S. tourist destination, with 33 million overnight visitors in 2023, outpacing Las Vegas and Los Angeles.
This comprehensive analysis underscores the resilience and ongoing challenges in New York City’s tourism sector as it continues to navigate post-pandemic recovery.
