NEW YORK.- New York City, known as the “Big Apple” and famous for being the city that never sleeps, has begun to regain its tourist vitality after a difficult period due to the COVID-19 pandemic, but Despite signs of recovery, it still faces significant challenges on the path to normality.
In Times Square, the heart of the city and an iconic spot for tourists, the opening of a Van Leeuwen ice cream shop this month marked a major development.
During the pandemic, the area lost 179 businesses, but the opening of this ice cream shop represents the 180th since then, indicating an economic revival in the area.
Tourists are returning to New York, and this is reflected in the record attendance at the US Open tennis tournament in Queens.
Jobs in hotels and restaurants have seen a 10% increase in the last year, too. Additionally, hotel occupancy has increased compared to the previous year, and room rates have surpassed pre-pandemic levels.
Challenges on the horizon
Despite these positive signs, New York will not surpass its record of 66.6 million visitors in 2019.
The lack of travelers from China, which used to be numerous, and the increase in American travel to Europe are contributing factors.
The hospitality industry still faces considerable obstacles. Investors are skeptical about the future, and hotels are selling at deep discounts compared to the prices they achieved before the pandemic.
Changes in interest rates also present a challenge, especially for hotels in need of refinancing.
One of the reasons behind the increase in hotel room rates is “rate compression” caused by the hiring of thousands of rooms to house asylum seekers.
Although these rooms are usually of low quality and price, they have contributed to reducing supply in the market, allowing other hotels to raise prices.
Possible impact of Airbnb restrictions
New restrictions on Airbnb short-term rentals in New York could have a significant impact on the city’s tourism, as on the one hand, they could reduce the availability of tourist accommodation in the city, which could make tourists They may have to pay more for accommodation, or they may have to opt for other options, such as hotels or hostels.
On the other hand, the restrictions could help reduce gentrification in the city. Short-term tourist rentals have been associated with gentrification as they can displace permanent residents from their homes.
If restrictions reduce the number of tourist rentals, this could help stabilize housing prices and make the city more affordable for permanent residents.
Specifically, the following are some of the effects the new restrictions could have on New York tourism:
Reduction in the availability of tourist accommodation: Restrictions prohibit the rental of entire apartments for less than 30 days when the owners are not present. This could significantly reduce the availability of tourist accommodation in the city, as many Airbnb hosts rent out their entire apartments for short periods of time. Increase in prices of tourist accommodation: If the availability of tourist accommodation decreases, the prices of the remaining accommodation could increase. This could make New York less affordable for tourists. Change in tourist profile: If restrictions make the city less affordable for tourists, tourists who visit the city may become wealthier. This could have an impact on the tourist activities that visitors carry out in the city. Increased demand for other types of tourist accommodation: If restrictions reduce the availability of tourist accommodation in the city, demand for other types of tourist accommodation, such as hotels or hostels, may increase.
Of course, the actual effects of the new restrictions will depend on how they are implemented and how market players react.
Uncertainties in the future of tourism
New York’s full recovery as a tourist destination could largely depend on US-China relations, as current travel restrictions have affected tourism from China. Travel between China and the United States remains just 10% of pre-pandemic levels.
Despite the challenges, New York City has managed to maintain its appeal to visitors.
Hotel occupancy averages 87.5% of capacity, and Times Square has seen a significant increase in foot traffic.
As office workers return only a few days a week, tourists have been instrumental in driving the retail recovery.
The tourism agency NYC & Co. still forecasts a 12% increase in the number of visitors this year, with a total of 63.3 million people. While the road to full recovery may be challenging, New York is proving to be a resilient and attractive destination for tourists.
2023-09-10 05:00:00
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