De Blasio pauses hotel tax for summertime, aiming for recovery
Mayor Bill de Blasio Wednesday introduced that the city will pause its hotel space occupancy tax price for a 3-thirty day period period of time beginning June 1, 2021, in an hard work to resurrect the tourism market, which has been devastated by the coronavirus pandemic.
According to the metropolis, the leisure and hospitality sector lost an estimated 257,000 employment from March as a result of Dec. 2020. Getting rid of the lodge room occupancy tax, the metropolis claimed, could possibly incentivize accommodations to decreased home rates, thereby expanding demand and aiding to spur on an financial restoration.
“As our COVID charges keep on to plummet and we continue to drive a restoration for all of us, travellers will be coming back again to New York Metropolis in droves. We’re prepared for them,” stated Mayor Bill de Blasio in statement soon after signing the govt purchase. “By removing the resort space occupancy tax for this summer season, we’re accelerating our economic recovery, saving positions and delivering relief for one particular of our toughest-hit industries.”
The hotel occupancy tax price presently sits at 5.875%
In accordance to the city, revenue from the lodge space occupancy tax is down about 89% when compared to the last fiscal 12 months.
“COVID-19 has devastated the lodge market. It is crucial that we lend a supporting hand to support an business that is really dependent on tourism, and eradicating the hotel space occupancy for the summer time year is a superior phase,” Town Council Speaker Corey Johnson mentioned in a statement.
Leaders inside the field echoed Johnson’s approval as nicely.
“The momentary occupancy tax waiver is a significantly wanted lifeline that is strongly welcomed by the beleaguered resort business,” explained Vijay Dandapani, President & CEO of the Hotel Affiliation of New York Metropolis.
