Gothamist

A non-profit newsroom, powered by WNYC.

Gothamist

WNYC Listen Live

Donate

 

 

News

In face of Trump tariffs, NYC hoteliers push for lower tax paid by tourists


By

Arun Venugopal

Published Apr 21, 2025


Share

FacebookTwitterRedditEmail


Never miss a story

 Email address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .

Tourists visit the Charging Bull of Wall Street in Lower Manhattan on March 28, 2025.

 

Spencer Platt/Getty Images


By

Arun Venugopal

Published Apr 21, 2025


Share

FacebookTwitterRedditEmail


We rely on your support to make local news available to all

Make your contribution now and help Gothamist thrive in 2026. Donate today

Gothamist is funded by sponsors and member donations

The New York City hotel lobby is urging elected officials to slash the hotel occupancy tax rate by nearly half, as it contends with a loss of tourism the industry blames on international tariffs imposed by the Trump administration.

The hotel occupancy rate, now at 5.875%, would drop to 3%, under the proposal of the Hotel Association of New York City. The surcharge brought in $238 million in the most recent fiscal quarter, according to data from the city comptroller’s office. But the industry worries about economic headwinds in the face of President Donald Trump’s trade policies, tariffs included.

Vijay Dandapani, the president and CEO of the Hotel Association of New York City, said in the current economic climate, hotel owners are “afraid of what the future could look like.”

The campaign to reduce the hotel occupancy charge comes as reports indicate that travel from Canada, the biggest supplier of tourists to the United States, dipped by 12.5% in February and 18% in March after two years of steady growth. International flights into all three of the region’s airports has also dropped, according to Crain’s New York Business.

The administration, in fits and starts, has called for tariffs on foreign goods ranging from 10% in many cases to as high as 145% in the case of China, prompting a multi-front trade war. In Canada’s case, Trump's added threat of turning the northern neighbor into a 51st state has generated intense resentment among Canadians and pledges to boycott the U.S.

The hotel industry’s push began earlier this month with a “StayNYC” industry campaign that stressed the value of hospitality to the local economy and the problem of the “whopping” occupancy rate.

Kaushik Patel, a hotel owner who has three properties in Long Island City, including a La Quinta Inn and Suites, said business is down 50% from 2019 and has struggled to emerge from the pandemic. If the hotel occupancy rate were reduced, Patel said, that would present “a huge saving” for tourists.

“And tourists will look at it positively and will travel again, and we will have business from international travel,” Patel said.

The risks posed by tariffs to the city’s economy was highlighted by City Comptroller Brad Lander, who predicted in a report last week the likelihood of a “mild recession” in New York City, due to the impact of tariffs on Wall Street and local tourism, among other industries.

Elected officials are also pushing for industry relief.

Amanda Farías, a council member from the Bronx, said in a statement that “reducing the tax rate is a smart, proactive step that will help boost tourism” and increase hotel occupancy.

“Tariffs absolutely have the potential to impact tourism, from currency fluctuations to the rising costs of consumer goods and experiences,” Farías said.

She added that “we should be doing everything possible to put safeguards in place immediately.”

The StayNYC campaign, paid for by the Hotel Association of New York City, was launched on April 7 and says the industry is responsible for more than 50,000 “good-paying jobs.”

“For people of color and immigrants in New York, hotels are a path to the middle class and a source of good wages and benefits,” the campaign website states. It continues, “Unnecessary taxes on tourists make visitors more likely to choose other cities as their destination.”

Dandapani said the loss of international tourists, whom he estimated spend “four to five times as much” as domestic travelers, is compounded by fears that tariffs will significantly increase costs for hotels, including furnishings made abroad.

“ People have placed orders in countries that are currently now being tariffed,” he said. “So instead of looking at, let's say $1,000 for a sofa, you're suddenly looking at $2,000 ”

Tagged

new york city

economy

Race And Justice Unit

Politics


Arun Venugopal

Twitter

Arun Venugopal is a senior reporter for the WNYC and Gothamist Race & Justice Unit who focuses on issues of race and bias in our region. His reporting also tackles the topics of immigration, faith, and inequality. Arun serves as the regular fill-in host of the station's "U.S. of Anxiety" program. Arun was the creator and host of Micropolis, a series about race and identity. He is a contributor to NPR's Morning Edition and All Things Considered. He has appeared on PBS Newshour, On the Media and Studio 360, and has been published in The Guardian, The Wall Street Journal and Salon. He also frequently serves as an emcee and moderator of panel discussions on race, religion, and identity issues and has been a guest host of NPR's "Fresh Air." He lives with his family in Queens.

Read more

Gothamist is funded by sponsors and member donations


Gothamist is funded by sponsors and member donations


MORE news

Central Park birders, others remember 63-year-old woman killed in park

People who said they knew her described her as an artist and a familiar presence in the Ramble.

By

Charles Lane

Published Sep 28, 2026 at 7:04 p.m. ET


Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says

It's the latest in a string of hit-and-run deaths in the city in recent months.

By

Liam Quigley

News

Dump truck driver hits and kills cyclist on 34th Street in Midtown, NYPD says

It's the latest in a string of hit-and-run deaths in the city in recent months.

By

Liam Quigley


New ingredient mandated for Latin American kitchen, restaurant plates in NJ

By

Arya Sundaram

A Brooklyn jail cell filled with smoke. The emergency button failed, a lawyer said.

By

Samantha Max

Crews launch tunnel machines to dig first new Hudson River rail tunnels since 1910

By

Michael Sol Warren


Never miss a story

Catch up on the most important headlines with a roundup of essential NYC stories, delivered to your inbox daily.

Sign upEmail address

By submitting your information, you're agreeing to receive communications from New York Public Radio in accordance with our Terms .