New York City Hotels Remain Vulnerable Due to Lagging International Visitor Numbers, Comptroller DiNapoli Reports
New York City's hotel sector requires a full return of international travellers and increased employment to achieve complete post-pandemic recovery, according to a July 16 report by State Comptroller Thomas DiNapoli, as reported by Hotel Dive on July 21, 2026.
International Visitor Shortfall Hampers Full Recovery
Despite strong demand from domestic travellers, New York City's hotel industry remains susceptible to the ongoing deficit in international visitor numbers, State Comptroller Thomas DiNapoli's report detailed on July 16. In 2025, the city hosted 65 million visitors; domestic travellers accounted for 52.4 million (81%), nearing pre-pandemic volumes. However, international arrivals reached only 12.5 million, representing 92.6% of their pre-pandemic figures and a decline from 2024. DiNapoli attributed this dip partly to geopolitical disruptions and federal trade and immigration policies, as Hotel Dive reported on July 21, 2026.
Industry Leaders Affirm Need for Global Tourism
While the sector shows overall strength, its full potential is unrealised without a faster return of international guests, DiNapoli noted. Vijay Dandapani, President and CEO of the Hotel Association of New York City, stated that the industry has not yet fully recovered from the pandemic, citing a shortfall of thousands of jobs and millions of visitors compared to previous levels. Despite these challenges, the city's hotel room count expanded by 16.7% between 2014 and 2024, surpassing the national average growth of 13.6%. New York City is projected to add 4,852 new hotel rooms this year, leading the country in hotel construction for the second consecutive year, according to the report.
Employment Lags Despite Growth Projections
Employment in the hotel sector has recovered more slowly than guest numbers. In 2025, the city recorded 45,325 hotel workers, which is 12.9% fewer than in 2019. Rich Maroko, President of the Hotel & Gaming Trades Council, highlighted the critical economic role of New York City's hotel industry. He expressed optimism about building on current momentum by creating more well-paid jobs, ensuring the industry's continued success benefits its workforce. In May, the Hotel Association of New York and the Hotel & Gaming Trades Council reached a tentative agreement on a new eight-year contract, which includes improved benefits and wage increases.
Future Outlook: FIFA World Cup and Broader US Tourism
The report aligns with broader concerns regarding dampened international tourism to the US over the past year, influenced by ongoing geopolitical tensions and economic uncertainty. However, a June forecast by CoStar and Tourism Economics projects a 3.4% year-over-year increase in international inbound travel for the full year 2026. Final figures for hotel performance during the 2026 FIFA World Cup, including international visits to New York City during the tournament, will provide further clarity on the trajectory of global tourism to the region, offering key insights for industry stakeholders and travellers planning future visits.
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