It’s one of the biggest travel markets in the United States, but New York City’s tourism industry could have a potential weak spot, according to a new report.
The city’s hotel industry, although among the strongest in the nation, still “remains vulnerable” amid an overall loss of international travelers due to geopolitical shifts, according to a new report by New York State Comptroller Thomas P. DiNapoli.
“The city’s hotel industry has largely recovered from the pandemic. It is doing well, but it could be doing even better if international visitors returned more quickly,” DiNapoli said.
The comptroller cited current U.S. policies on trade and immigration as two major areas keeping some international tourists away, as well as a range of other domestic and global geopolitical issues.
“Despite the challenges, we expect the sector to continue to grow, but a complete recovery requires a return of international visitors and increased employment to keep up with demand,” DiNapoli said.
The city’s hotels are still seeing strong demand, driven mainly by domestic travelers.
In 2025, New York City saw a total of 65 million visitors, the overwhelming majority of whom, 52.4 million or 81%, were domestic travelers. That’s nearly on par with demand from before the pandemic.
International visitors to NYC for 2025 clocked in at 12.5 million, which is just 92.6% of pre-pandemic demand but lower than 2024’s numbers. Business travel was also stuck at 92.6% of its demand from 2019.
Looking at the numbers, experts in the hotel industry echoed DiNapoli’s analysis.
“The Comptroller is right that the return of international travelers, who on average stay longer and spend more, is essential to a full recovery,” said Rosanna Maietta, president and CEO of the American Hotel & Lodging Association (AHLA). “AHLA will continue to partner with federal, state, and city policymakers to expand tourism, support hotel workers, and keep New York a destination the world wants to visit.”
The report also stated that New York City expects to add 4,852 new hotel rooms in 2026. But despite the industry’s expansion, hotel employment rates are still lagging from the pandemic.
In 2025, there were 45,325 employees working in hotels, which is 12.9% fewer than in 2019.
“The Comptroller’s report confirms what the hotel industry has been saying for years: we have yet to recover from the pandemic, and we are still thousands of jobs and millions of visitors below where we were,” said Vijay Dandapani, President & CEO of the Hotel Association of New York City.
Hotel occupancy rates are another area that continues to lag behind pre-pandemic levels, according to the report.
New York City’s hotel occupancy rate was 84.1% in 2025, which was the highest in the U.S. for the third year in a row. However, it was still lower than the pre-pandemic 87.5% occupancy rate.
For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.
Topics From This Article to Explore
