Bill de Blasio, Mayor of New York announced on Wednesday that from June 1, 2021 to August 31, 2021, hotel room occupancy tax of 5.875% will be eliminated.
Hotel prices are expected to drop in New York, with the decision taken to help accelerate the recovery of the hospitality industry, which was heavily affected by the pandemic.
“As our COVID rates continue to plummet and we continue to drive a recovery for all of us, tourists will be coming back to New York City in droves. We’re ready for them,” said Mayor Bill de Blasio. “By eliminating the hotel room occupancy tax for this summer, we’re accelerating our economic recovery, saving jobs and providing relief for one of our hardest-hit industries.”
In New York, due to the pandemic, revenue from the hotel room occupancy tax is down approximately 89% as compared with Fiscal Year 2020.
The tax reduction is expected to help the lesiure and hospitality sector recover, which lost about 257,000 jobs from March to December 2020.
