New York City’s tourism sector nears full recovery, with visitor spending and tax revenues surpassing pre-pandemic levels, though tourism jobs and international visitors still lag.
New York City’s tourism sector is on the brink of a full recovery, with visitor spending and related tax revenues exceeding pre-pandemic levels, according to a new report from New York State Comptroller Thomas P. DiNapoli. The city is expected to welcome a record 68 million visitors by 2025, surpassing pre-pandemic numbers.
“The number of tourists is nearly back to pre-pandemic numbers in New York City,” DiNapoli said. “Visitor spending and the tax revenue this industry generates already exceed pre-pandemic levels, but the industry’s recovery won’t be complete until we see a full return of international and business travelers, and a full recovery of local jobs. Our city and state leaders need to focus on keeping New York a desirable and safe destination for individuals and families from around the world.”
In 2023, New York City attracted 62.2 million visitors, just 7% fewer than the 66.6 million who visited in 2019. Visitor spending topped $48 billion, a 1.3% increase from 2019, driven by rising prices, including hotel rates averaging over $300 per night. This surge is projected to generate a record $4.9 billion in tourism-related tax revenue for fiscal year 2024, marking a 16% increase since FY 2020.
Domestic travelers have spearheaded the recovery, with 50.6 million U.S. visitors in 2023, up 7% from 2022 and approaching 2019 levels. However, international travelers, who constitute 20% of the city’s visitors, are returning more slowly. Their numbers grew to 11.6 million in 2023, a 23.4% increase from 2022, but still 14.1% below 2019 levels.
Changes in international visitor patterns have impacted spending and tax revenues. Visitors from China, previously the largest spenders, have been surpassed by those from the United Kingdom. Chinese visitor spending dropped from $3,000 in 2019 to $2,036 in 2023. Overall, international tourist spending was down 20.4% in 2023 compared to pre-pandemic levels.
Business travel, particularly international, remains sluggish due to the rise of remote work. Despite these challenges, New York City led major U.S. tourist destinations in 2023 with over 33 million overnight visitors, ahead of Las Vegas and Los Angeles.
While the tourism sector is recovering, nearly 30,000 jobs are still missing compared to pre-pandemic levels. Wages in tourism-related jobs also grew more slowly than in other sectors. Upcoming events, including the 2026 FIFA World Cup and New York City’s 400th birthday, are expected to attract record crowds, supporting further recovery.
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