New York City's Post-Pandemic Tourism Recovery Masks Long-Term Challenges

25.08.2023 - 13:51 / skift.com / Dawit Habtemariam / Fred Dixon / Peter Van-Berkel / Long

New York’s tourism industry has roared back from its rough pandemic years, but local pessimism and empty offices could hamper the sector’s long-term trajectory.

Meanwhile, local leaders say the tourism sector is more important than ever for the city’s recovery.

Last year, New York reached 85 percent of its pre-pandemic volume, receiving 56.7 million visitors, over 9 million of which were international. This year, the city is projected to welcome 63.3 million visitors and have a full recovery in 2024, said Fred Dixon, president and CEO of New York City Tourism + Conventions (formerly NYC & Company). The tourism workforce is at around 85 percent of its pre-pandemic level and heading in the right direction, he added.

In an “amazingly short time,” the Big Apple has made a strong recovery, especially compared to other major cities like San Francisco and Los Angeles, said Peter van Berkel, chairman of the Inbound International Travel Association and president of Travalco. 

Globally, in 2022 the Big Apple ranked 8th in terms of international traveler spend ($12.45 billion) and 6th in terms of total travel and tourism GDP ($21 billion), according to the World Tourism and Travel Council.

During the global pandemic, thanks to borders closures and fears of densely populated areas, people avoided travel to and living and working in Boston, New York, London, Paris, Chicago and other large cities. New York City saw its tourist volume nosedive, from 66.6 million in 2019 to 22 million in 2020, and lost $1.2 billion in tax revenue.

What made New York City’s predicament so bad was that it was the epicenter of the Covid-19 global pandemic. Residents fled, businesses shut down, offices were vacant and streets were deserted —turning the city into a ghost town.

Truly felt like a movie set at times…eerie, quiet, desolate, deserted. Crazy to think its been 3 years. #manhattan#emptycity #nyctiktok

There was endless public speculation in news outlets and commentators that the City That Never Sleeps was about to go to bed — maybe forever. “New York Is Dead” was the title of a viral LinkedIn essay by James Altucher, a New Yorker and best-selling author.

With $30 million in support from the federal government’s American Rescue Plan, the city spread the message globally that it was back in action and ready welcome to tourists again. The restart began in 2021 when Broadway reopened, but things really kicked off in Spring 2022, and then New York tourism took off with “incredible momentum,” said Dixon.

In 2022 overall, New York City’s hotels made a “phenomenal comeback”, reaching revenue per available room at $215, according to STR. Hotel inventory now sits around its pre-pandemic level at 127,000 rooms, and there’s 11,000 more in