New York City is one of the world’s most popular tourist destinations and it’s no secret that tourism is a major industry in the city. But have you ever wondered just how much money the city makes from tourism? Let’s take a closer look.
NYC Tourism Industry Overview
According to NYC & Company, the city’s official tourism organization, over 66 million people visited New York City in 2019 alone, spending approximately $46 billion. The tourism industry is responsible for creating jobs for over 400,000 New Yorkers and generating billions in tax revenue each year.
Tourism Revenue
In 2019, New York City generated $72.8 billion in overall economic impact from tourism. This includes not only direct spending by tourists but also indirect spending on things like transportation, accommodations and food.
Tourism Tax Revenue
Tourism also generates billions of dollars in tax revenue for the city each year. In 2019, visitors to New York City paid a total of $7.1 billion in state and local taxes. This includes sales tax on purchases made by tourists as well as hotel occupancy taxes.
Impact of COVID-19 on NYC Tourism
Unfortunately, like many industries around the world, the COVID-19 pandemic has severely impacted New York City’s tourism industry. In 2020, NYC & Company estimated that visitor spending would be down by more than $30 billion due to travel restrictions and safety concerns.
Conclusion
Despite the challenges posed by COVID-19, it’s clear that tourism remains a vital economic engine for New York City. The industry supports hundreds of thousands of jobs and generates billions of dollars in tax revenue each year. As travel restrictions ease and visitors return to the city, we can expect to see a continued growth in this important sector of the New York City economy.