NYC tourism is still struggling, and it’s keeping inflation at bay
The sluggish recovery of New York City tourism offers one bright spot — it appears to be keeping some costs that have spiked nationwide in check in the Big Apple.
In cities across the country, higher prices for airfare, hotels, restaurants, car rentals and other items all made it more expensive to be a tourist.
But with travel to New York City still far below pre-pandemic levels, there doesn’t appear to be the same price pressure building in Gotham as in other cities.
Earlier this week, the Labor Department announced that its Consumer Price Index, which measures a basket of goods and services as well as energy and food costs, jumped 5.4 percent in June from a year earlier.
But the New York City area lagged the nationwide number, rising just 4.1 percent from last June.
Of the cities tracked by the feds, only Los Angeles saw a smaller jump in prices over that period. Atlanta, urban Alaska, St. Louis and Seattle all saw year-over-year spikes in prices above the national average.
The national average cost of a night in a hotel, for example, spiked a whopping 16.9 percent from a year earlier.
The feds don’t provide comparable data broken out by city, but the president and CEO of the Hotel Association of New York City, Vijay Dandapani, told Crain’s New York that there’s just not enough demand to see costs rise like that in New York City right now.