NYC tourism generated $84.7B in 2025, int'l visitation down 3.2%

New York City Tourism + Conventions, the destination marketing organization and convention and visitors bureau for the five boroughs of New York City, has released its 2025 Annual Report, highlighting a year of growth for the city’s tourism sector.

Despite ongoing global challenges, the industry delivered a total economic impact of $84.7 billion, including $55.6 billion in direct spending.

Tourism activity supported approximately 397,000 jobs across the city, benefiting thousands of small and minority-owned businesses, the report says.

In addition, the sector generated $7.5 billion in tax revenue, reinforcing its critical role in maintaining the city’s economic stability.

The report was presented at the organization’s Annual Meeting on March 18 at the Manhattan Centre.

“In 2025, New York City’s tourism economy proved resilient despite global challenges, underscoring the enduring appeal of the five boroughs,” said Julie Coker, president and CEO of New York City Tourism + Conventions, in a statement.

“The international visitor market is crucial to our economy, accounting for 50 per cent of tourism spending. Despite international declines, we saw growth across all our economic impact metrics: total direct visitor spending was more than $55 billion, which generated nearly $85 billion in economic impact for our city, flowing into hotels, restaurants, cultural institutions, retail and small businesses across all five boroughs. The impact of the tourism industry remains critical to the entire city.”

Charles Flateman, Board Chair of New York City Tourism + Conventions and Executive Vice President of The Shubert Organization, emphasized the strength of domestic travel.

“New York City’s domestic visitor market saw accelerated growth in 2025, as domestic travel remains the backbone of the tourism industry nationwide,” Flateman said.

“Next year, we expect domestic travel to surpass record 2019 levels, signaling a major milestone and emphasizing the strength of our regional drive markets. The domestic market accounts for 80% of our visitation and overnight trips now account for 51 per cent of this segment, contributing to New York City’s position as first in hotel occupancy in the U.S. market.”

Tourism performance in 2025

Overall visitation reached 65 million visitors in 2025, marking a modest 0.7 per cent increase compared to 2024.

Growth was primarily driven by domestic travellers, who accounted for 52.4 million visits, up 1.7 per cent year over year.

Key feeder markets included the New York City tristate area, Philadelphia, Washington, DC, Los Angeles, and Boston.

Overnight trips continued to play a major role, rising 2.3 per cent and representing 51 per cent of domestic visitation.

Meanwhile, international travel experienced a slight decline of 3.2 per cent, totalling 12.5 million visitors.

However, this decrease was less severe than anticipated, and several markets—including the UK, Italy, and Mexico—still posted year-over-year growth, the company said.

Leisure travel remained the dominant segment, accounting for 52.4 million visitors and reaching 99 per cent of pre-pandemic levels seen in 2019.

Business travel totaled 12.6 million visitors, still slightly below 2019 benchmarks. During the year, New York City Tourism + Conventions facilitated 1,515 meetings and events, generating nearly 345,000 confirmed room nights.

Hotel industry remains strong

The city’s hotel sector demonstrated continued strength in 2025, particularly in luxury and upscale segments driven by higher-income travellers.

New York City ranked first in hotel occupancy among the top 25 U.S. markets, with an overall occupancy rate of 84.2 per cent, consistent with 2024 levels, the report says.

Luxury hotels achieved an average occupancy of 82.2 per cent, up one per cent year over year, while upscale hotels held steady at 87.5 per cent.

Midscale hotels, however, saw a decline to 76.7 per cent, down seven per cent from the previous year.

Demand remained robust, with 38.1 million room nights sold, reflecting a two per cent increase.

The city’s hotel inventory expanded to approximately 124,000 rooms, including six new openings that added 992 rooms.

The average daily rate rose to $334, a five per cent increase over 2024. Looking ahead, 24 hotel projects are currently in development through 2028, expected to add 5,778 additional rooms.

Outlook for 2026

Tourism officials project continued growth in 2026, with total visitation expected to reach 66.3 million, a two per cent increase over 2025.

Domestic travel is forecast to climb to 53.4 million visitors, surpassing pre-pandemic records from 2019.

International visitation is also expected to recover, reaching 12.9 million visitors and returning to 2024 levels. Growth is anticipated across all of the city’s top 20 international markets.

Business travel is projected to increase to 12.8 million visitors, reflecting nearly two per cent growth.

A major boost is expected from the FIFA World Cup 26 games, which are anticipated to attract 1.2 million visitors to the New York–New Jersey region.

The event is projected to generate $3.3 billion in economic impact, including $1.8 billion in direct spending, and support approximately 26,000 jobs.

Don't miss a single travel story: subscribe to PAX today!  Click here to follow PAX on Facebook.