- NYC hotels see loss of Canada tourism.
- U.S.-Canada trade talks broke down.
- NYC had 26 percent fewer Canadian visitors in 2025.
NEW YORK CITY’S hotel industry is urging the federal government to resolve the U.S.-Canada trade dispute in light of declining Canadian tourism. The Hotel Association of New York City said the tariffs could affect workers, businesses and tax revenue.
The call came after trade talks broke down and President Donald Trump announced 50 percent tariffs on certain Canadian goods. Canada responded with retaliatory tariffs, extending a dispute that began more than a year ago, HANYC said.
“Our tourism economy cannot afford another year of trade wars with Canada that drive away our most important international visitors,” said Vijay Dandapani, HANYC president and CEO. “Canadian visitors are critical to our small businesses, jobs and the well-being of our workers. We are already seeing a sharp decline in Canadian visitation this year following a steep drop last year that resulted in a 28 percent decrease in spending. The federal government must reach a deal with Canada and give travelers a reason to come back. If we fail to act, New York risks losing even more visitors from our number one tourism partner and the economic activity our sector depends on.”
New York had 26 percent fewer Canadian visitors in 2025 than the previous year, HANYC said. Canadian spending fell 28 percent and remained 14 percent below pre-pandemic levels. The hotel industry supports more than 40,000 hotel workers and 400,000 hospitality workers and generates billions of dollars in annual tax revenue.
The dispute adds to travel restrictions, slower revenue growth, inflation, higher operating costs and immigration crackdowns. The revocation of Haitian TPS affects 1,200 Haitian hotel workers.
A New York State Comptroller report said the city’s hotel industry had 12.9 percent fewer workers and 2.4 percent fewer visitors than before the pandemic. New York welcomed 65 million visitors in 2025, including 52.4 million domestic travelers, or 81 percent of the total.
International visitors totaled 12.5 million, or 92.6 percent of 2019 levels, down from 2024. Hotel occupancy was below 2019 levels in every month of 2026 except January, when it was one percentage point higher.
RevPAR averaged $252.62 in the first half of 2026, compared with $277.76 in 2019 after adjusting for inflation. HANYC expects September occupancy to remain below 2019 levels based on forward bookings. Comptroller Thomas DiNapoli said the city remained vulnerable as international visitor numbers lagged.
The Caribbean American Chamber of Commerce also called for a resolution, saying Canadian tariffs could raise costs and force more businesses, particularly minority-owned businesses, to close.
HANYC said a trade agreement with Canada is needed to encourage Canadian travel and support New York’s tourism economy.
