Dive Brief:
- The Hotel Association of New York City launched an ad campaign and website called “Save NYC Hotels” amid concerns about lower-than-expected demand for the FIFA World Cup, which kicks off June 11, according to a news release.
- The $500,000 campaign, which will run across social media, streaming platforms and the web, intends to spread the word about the state of the New York hotel industry and make clear to decision makers that “the city's ability to capture the full economic benefits of the upcoming FIFA World Cup depends on its success in attracting visitors to stay in city hotels,” per HANYC, which represents 300 hotels and around 50,000 employees.
- The ad campaign comes as NYC hotels contend with “slow revenue growth, high operating costs, tariffs and federal policies curbing tourism [that] threaten the livelihoods of more than 40,000 hotel workers-most of whom are immigrants and unionized-and billions in economic activity,” per the release. “The consequences of these headwinds leading up to the World Cup are already evident in declining demand for what could be an economic boon for hotels and the city,” HANYC said.
Dive Insight:
According to HANYC, the Iran war has brought an additional 10% to 15% drop in business at New York City hotels, particularly from international travelers who spend an average of four times as much as domestic travelers.
“These pressures have already cost hotels 24% of its pre-pandemic workforce, and now put at risk the 388,000 tourism jobs hotels support, $79 billion in economic impact they generate, and $6.8 billion in annual tax revenue for city services,” per the release.
Prior to the war, which started in February, hotels across the country were already facing softened international travel demand, in part due to rising geopolitical tensions and visa processing, adding increased pressure to the industry. FIFA also recently canceled booking blocks across several major U.S. World Cup host cities, sparking concerns about the anticipated boost to tourism.
If New York City is to maximize the economic benefits of the upcoming World Cup, “our hotels must be able to attract as many visitors as possible to fill rooms,” HANYC President and CEO Vijay Dandapani said in a statement. “Hotels are under enormous pressure and need relief to offset the many challenges facing our industry.”
According to HANYC, the city’s hotels offer “the best wages in the country and precedent-setting benefits,” claiming room attendants make close to $73,000 as a starting salary, per its release.
“Supporting hotels means supporting the tens of thousands of workers they employ and the wider tourism sector that drives New York City's economy," Dandapani added.
