Page 14 - The Indian EYE 062626

North The Indian Eye

AMERICANNewsline

14 JUNE 26, 2026

New York City Hotels Projected to Make Only

Half of Anticipated Revenue from World Cup

Despite avoiding a crippling hotel strike, international travel barriers, weak bookings, and rising

costs are turning New York’s anticipated World Cup windfall into a major disappointment

OUR BUREAU
New York, NY
or New York City’s hotel in-
dustry, what was expected to
Fbe a major economic boom
from the World Cup is looking like a
big bust. In its latest projections, the
Hotel Association of New York City
(HANYC) slashed its forecast for ho-
tel revenue growth during the tour-
nament period from roughly $200
million in February to $100 million as
the World Cup kicks off.
The industry has been warning
for months that World Cup bookings
were falling short of the goal for what
should be a once-in-a-generation eco-
nomic opportunity. Last month, the
American Hotel & Lodging Associa-
tion reported that 60% of New York inated the risk of labor disruptions
hotel operators were experiencing that could have further discouraged
softer-than-expected bookings for visitors from staying in city hotels
World Cup, citing geopolitical instabil- and spending in the city, a scenario
ity and an international tourism slump. that came much closer to playing out
International visitors, who spend, in Los Angeles, where a possible ho-
on average, four times as much as tel union strike was just avoided at
domestic travelers, are facing grow- the last minute.
ing barriers to entry, including trav- The World Cup disappointment
el bans, visa delays, immigration comes as the industry faces major
crackdowns, and other restrictions. headwinds from slowed revenue
Those policies have dampened de- growth, persistent inflation, rising
mand from international travelers operating costs, and the prolonged
who would otherwise fill hotel rooms tourism slowdown. Together, they
and support businesses across the threaten a cornerstone of New
city. The war with Iran further com- York City’s economy that supports
pounded the problem, triggering an more than 40,000 hotel workers and
additional 10% to 15% decline in 400,000 hospitality workers while kickoff, hotels that were counting on future major tourism events as well.”
hotel business. generating billions in annual tax rev- a World Cup boost to offset rising Founded in 1878, the Ho-
At the same time, the industry enue that helps fund essential public costs and a prolonged slump in inter- tel Association of New York City
and city were confronted with anoth- services. national tourism are slated to bring (HANYC) is the oldest hotel associ-
er significant World Cup threat from “We now know that the promised in just half of what they’d anticipat- ation in the United States and one of
a potential hotel union strike, which World Cup economic boom will be ed,” said Vijay Dandapani, President the oldest professional trade associ-
would have dealt a devastating blow a bust. The hotel industry has been and CEO of the Hotel Association ations in the country. HANYC is an
to hotels, hotel workers, and the warning for months that World Cup of New York City. “The industry suc- internationally recognized leader in
broader tourism economy. HANYC bookings and revenue were falling cessfully avoided a union strike ahead New York City’s $11 billion tourism
successfully averted the strike with short of expectations, threatening of the tournament that would have industry, representing nearly 300
a precedent-setting contract agree- hotels and hotel workers, the larger been all the more devastating. With- of the city’s finest hotels with more
ment with the union just weeks be- hospitality sector, and critical rev- out relief, New York risks missing out than 80,000 rooms and approximate-
fore the tournament. The deal elim- enue for the city. Just days before not only on this opportunity, but on ly 50,000 employees.

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