- New York City’s tourism industry is showing signs of recovery post-pandemic.
- However, a full recovery won’t happen until tourists from China return.
- Chinese visitors typically spend more, but the economy and travel limitations are keeping them home.
New York City’s tourism industry is bouncing back, but one country is slowing down the recovery — China.
Though New York City hotel occupancy rates are nearing pre-pandemic levels, the recovery is hindered by a significant decline in Chinese tourists, who typically spend the most money and stay in the US for a whopping 12 nights on average.
Dan Krauth of WABC summarized his discussions with some hotel operators this week, noting that the tourism industry won’t return to 100% until the Chinese market returns.
“What they care about is China,” Krauth said. “That is the one market that hasn’t returned yet. They stay the longest and spend the most money. “
China’s economy is facing significant challenges. While not in an official recession, there are concerns that the country is heading for a financial crisis, thanks to a crumbling real estate market, loss of foreign investors, a slow re-opening following the COVID pandemic, and a shift in priorities from finances to power.
As a result, Chinese consumers are tightening their grip on their money with housing prices falling and prices for goods in deflation.
The biggest drop in visitors has come from China
In 2019, New York City had 67 million visitors, the 10th consecutive year in which it set a record, according to the office of the New York Comptroller. Those visitors generated about $68 billion in annual economic impact, including about $6 billion in taxes for the city, according to WABC in New York.
The New York City Tourism and Conventions office is projecting the number of international visitors to be about 80%…
