New York City hotels are projected to generate only about half of the expected revenue during the FIFA World Cup, according to new estimates released Thursday by the Hotel Association of New York City.
The industry group said it has reduced its forecast for hotel revenue growth during the tournament period from roughly $200 million in February to about $100 million as the World Cup gets underway.
Officials attributed the sharp decline to weaker-than-expected bookings, international travel barriers, and rising operating costs, despite avoiding a potentially disruptive hotel workers’ strike ahead of the event.
The association and other industry groups had warned for months that bookings were lagging for what had been billed as a once-in-a-generation economic opportunity. A recent report from the American Hotel & Lodging Association found that 60% of New York hotel operators were experiencing softer-than-expected World Cup reservations, citing geopolitical instability and a slowdown in international tourism.
International travelers, who typically spend significantly more than domestic visitors, have faced increasing hurdles, including visa delays, travel restrictions, and stricter immigration policies. Industry leaders said those challenges have dampened demand and reduced anticipated spending across the city’s tourism sector. Ongoing geopolitical tensions, including conflict involving Iran, have further contributed to an estimated 10% to 15% decline in hotel business.
The outlook comes even as the industry avoided a major labor disruption. A potential hotel union strike, which threatened to coincide with the World Cup, was averted after the Hotel Association reached a contract agreement with union leaders weeks before the tournament. Industry officials said a strike would have further discouraged visitors and deepened financial losses.
“We now know that the promised World Cup economic boom will be a bust,” said Vijay Dandapani, president and CEO of the Hotel Association of New York City. “Hotels that were counting on a World Cup boost to offset rising costs and a prolonged slump in international tourism are slated to bring in just half of what they anticipated.”
The disappointing projections come as New York City’s hotel sector faces broader challenges, including persistent inflation, rising expenses, and a prolonged slowdown in global travel. The industry supports more than 40,000 hotel workers and about 400,000 hospitality jobs citywide, while generating billions of dollars in annual tax revenue.
Founded in 1878, the Hotel Association of New York City represents nearly 300 hotels across the city, accounting for more than 80,000 rooms.
Kishor Panthi
View More PostsKishor Panthi is the founder and editor-in-chief of Khasokhas and NepYork. He is the author of three books, “Kampan,” "UNTRANSLATABLE" and “Zero Mile.” He writes about social issues, immigration, and politics.
