A record 58.3 million people came to visit New York City in 2015, according to a report from New York State Comptroller Thomas DiNapoli. And to keep pace with this rising tide of tourists, the number of hotel rooms in the city rose to a record 107,000.
New York City took in a record $1.8 billion in tax revenue from the hotel industry in Fiscal Year 2015, also a record, according to Friday's report. This includes property taxes paid by hotels, hotel room occupancy taxes, sales taxes and other levies such as mortgage recording, business and personal income taxes.
“It comes as no surprise that NYC has seen a surge in tourism in recent years. New York is a family-friendly city rich with culture and flush with things to do and see,” said Freddi Goldstein, spokesperson for Mayor Bill de Blasio. “We’re thankful to our visitors, as their business enables us to create new jobs, which helps our city’s growth. We hope to see this trend continue.”
Over the last 10 years, the number of visitors has increased 33%, with the total number of hotel rooms rising by 48%. In that same period, the number of industry-related jobs rose by 29%.
"The hotel industry is flourishing. A record number of tourists have flocked to New York City, fueling the creation of well-paying middle-class jobs," DiNapoli said in a press release. "While the industry is vulnerable to changes in domestic and international economic conditions, the industry's long-term prospects remain strong."
Weakness in the global economy and the strong dollar hurt the hotel industry last year. In 2015, occupancy rates fell to 88.5%; in 2014 the occupancy rate in the city was 89.4%. Additionally, the average room rate fell last year for the first time since the recession, dropping to $294 from $301. The report said the industry faces other challenges such as the emergence of competitors such as Airbnb.
Last year, there were 696 hotels in the city, two-thirds of them located in Manhattan. The number of hotels in Brooklyn has tripled over the past 10 years, while the number in Queens has doubled. By the end of 2019, the hotel industry is planning to add another 26,500 rooms.
With more than 210,000 hotel rooms currently, New York City is the nation's third largest hotel market by city, following Las Vegas and Orlando, Fla.
