Hotel Association CEO Vijay Dandapani testifies on tourism headwinds
Vijay Dandapani of the Hotel Association of New York City says hotel bookings were behind projections before the World Cup. He says the final weekend produced an additional $74 million in hotel revenue but that federal policies, visa issues, and international travel declines continue to threaten tourism jobs and tax revenue.
Thank you.
Good afternoon, Chair Maloney and Chair Thomas Henry.
I'm Vijay Dandapani, President and CEO of the Hotel Association of New York City, testifying on behalf of HANEC, also known as the Hotel Association of New York City, regarding the impact of FIFA on the hotel industry in New York City.
At the start of the World Cup series, hotel bookings and revenues were significantly behind the initial projections for the city.
In response, Hanek launched a 500,000 ad campaign website called Save NYC Hotels.
The goal of this campaign was to spread the word about the current state of the New York hotel industry.
And make clear the city's ability to fully capitalize on the economic benefits of the World Cup depended on its success in attracting visitors to the city's hotels.
In the end, favorable entry processes for the final country's visa fee travel for Spain and rapid visa processing for Argentina drove a sudden
late stage influx in the last weekend and the tournament's final match between Spain and Argentina produced an additional $74 million in hotel revenue.
As demonstrated by that example, involving visas for Spain
Argentine visitors, tourism in the city is closely tied to actions taken by the Trump administration.
The added profits from the World Cup is not enough to sustain the industry as a whole, and bookings for the rest of the year trail compared to the record tourism year of 2019, when the city saw 66.6 million.
Tourist arrivals.
The war in Iran has contributed to an additional 10 to 15 percent decline in business at New York City hotels, particularly among international travelers and particularly from Canada and Germany, who spend an average of four times more than domestic travelers.
Additionally, the United States'ongoing tariff dispute with Canada has contributed to a decline in Canadian visitors to New York City.
These ongoing measures threaten 388,000 tourism jobs supported by the hotel industry, including the $79 billion in economic activity it generates and the $6.8 billion in annual tax revenue
it provides for the city's agencies.
Therefore, HANIC calls on the Council to examine the impact of federal policies and actions on New York City's tourism industry, including the city's ability to fully capitalize on major events such as the World Cup.
We also believe the city should prioritize efforts to attract visitors, particularly international travelers, and clearly distinguish New York City as a welcoming destination from federal policies.
That may discourage international tourism.
We look forward to continuing our productive partnership with the Council, including Chair Maloney and Chair Thomas Henry, and greatly appreciate the Council's
willingness to engage with the industry and work collaboratively to address these challenges.
Thank you again for your attention to this matter and for the opportunity to testify before you today.