NEW YORK (77WABC) – Mayor Bill de Blasio signed an executive order on Wednesday, eliminating the 5.875% hotel room occupancy tax rate from June 1, 2021 to August 31, 2021. The order is meant to help accelerate the recovery of the hard-hit hotel industry due to the COVID-19 pandemic, according to the Mayor’s office.
“As our COVID rates continue to plummet and we continue to drive a recovery for all of us, tourists will be coming back to New York City in droves. We’re ready for them,” said de Blasio. “By eliminating the hotel room occupancy tax for this summer, we’re accelerating our economic recovery, saving jobs and providing relief for one of our hardest-hit industries.”
The order comes on the heels of NYC & Company’s $30 million “NYC Reawakens” marketing campaign, highlighting attractions in New York City to help bring back tourism. NYC & Company forecasts 36 million visitors to New York City in 2021. Eliminating the hotel room occupancy tax allows hotels could lower the cost of their rooms, potentially increasing demand on room occupancy.
PRESS RELEASE: @nycgo presents #NYCReawakens as New York City begins tourism comeback, including five-borough destination updates and announcement with @NYCMayor of new upcoming $30 million marketing campaign https://t.co/APJ5TQYLL2
— New York City Tourism + Conventions Press Account (@nyctourismnews) April 21, 2021
The dramatic decrease in tourism and business travel due to the pandemic has had a significant impact on the hotel industry, with loss of about 257,000 jobs from March through December 2020. According to the Mayor’s office, revenue from the hotel room occupancy tax is down approximately 89% as compared to last year.
“It is undeniable that New York City’s hotel industry, which welcomed tens of millions of tourists and business travelers before the pandemic, suffered tremendously as travel halted,” said Department of Finance Commissioner Sherif Soliman in the press release. “As the City’s Recovery for All continues to gain momentum, this targeted and temporary tax reduction will provide wind at the backs of the hotel industry, helping put more New Yorkers to work as they roll out the red carpet for all who seek accommodations, whether for leisure or business.”
“This executive order is welcome news for tens of thousands of hospitality workers and for New York City’s tourism industry, which has endured the worst economic impacts of the pandemic,” said Rich Maroko, President of the Hotel Trades Council. “This tax relief serves as critical encouragement for hotels to re-open to guests from across the world. HTC thanks Mayor de Blasio for his leadership in helping our industry and our city get back on its feet.”
