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NYC Tax Could Result in Fewer Hotel BookingsAugust 27, 2009 By: George Dooley
The National Tour Association (NTA) believes that the New York City Remarketer Tax will severely impact hotel bookings in the city and prompt tour operators to move business elsewhere. The NTA said they conducted a brief survey to determine how a new tax on remarketers of hotels sold in New York City would impact tour operators' use of that city's hotels.
The new tax is scheduled to go into effect on September 1. The tax is also opposed by ASTA and the Business Travel Coalition (BTC).
The NTA survey indicated that changes to the New York City occupancy tax will cause 80 percent of tour operator survey respondents to book fewer room nights in the city. These operators book an average of 432 room nights in New York City a year.
Based on survey participants, more than 17,000 room nights are likely to move elsewhere if the new tax takes effect. When these numbers are projected on the NTA membership as a whole, NTA tour operators could book more than 60,000 rooms fewer in New York City after the tax takes effect, the NTA reports.