Travelpress iconTravelpressAug 28, 2026 ~3 min source read

NYC hotel group warns Canada–US trade dispute is hurting tourism and jobs

The Hotel Association of New York City says fewer Canadian visitors, falling spending and other economic pressures threaten hotel workers, small businesses and city tax revenue unless Washington and Ottawa reach a deal.

NYC hotel group warns that Canada-US trade dispute will impact tourism economy

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Useful takeaways from this story.

Canadian visitation fell sharply: 26% fewer Canadian visitors to New York in 2025, driving a 28% drop in spending.

Broad industry strain: hotels support 40,000+ hotel workers and 400,000 hospitality workers while facing lower occupancy, weaker revenue metrics and higher operating costs.

Official ask: HANYC urges the federal government to negotiate a resolution with Canada to restore visitation and spending.

# What happened

# The concrete impacts cited

HANYC's statement cites measurable declines tied to recent tensions and broader headwinds:

  • Canadian visitors to New York fell 26% in 2025, which HANYC links to a 28% decline in spending by Canadians.
  • Canadians spent 14% less last year compared with the pre-pandemic period.
  • Immigration and workforce shifts are adding stress: the revocation of Temporary Protected Status (TPS) for Haitian nationals affects about 1,200 hotel workers.

# How hotels are faring overall

Comptroller's recent report, cited by HANYC, shows hotels remain below pre-pandemic performance on several metrics:

  • 12.9% fewer hotel workers than before the pandemic.
  • 2.4% fewer visitors overall.
  • Occupancy is below 2019 levels for every month in 2026 except January, which was up by one point.
  • Revenue measures are lower when adjusted for inflation: RevPAR for the first half of 2026 averaged $252.62 versus $277.76 in 2019.

HANYC expects September 2026 forward bookings to remain below 2019 levels.

# Why HANYC is pressing for a deal

HANYC frames Canadian travelers as one of New York's top international markets and says further declines would deepen economic challenges for hotels, related businesses and the city's tax base. Vijay Dandapani, HANYC's president and CEO, said Canadian visitors are critical to small businesses, jobs and workers' wellbeing and urged the federal government to reach a deal with Canada to give travelers "a reason to come back."

Commerce's president, Dr. Jean G. Joseph, echoed that retaliatory tariffs and trade measures penalize local businesses and workers and urged a prompt federal resolution.

# The broader picture for operators and workers

# Immediate asks and likely near-term outcomes

HANYC's immediate request is straightforward: the federal government should negotiate an agreement with Canada to encourage visitation and spending. The association expects continued weakness into the fall based on current forward bookings and says action is needed to prevent further losses in visitors, spending and tax revenue.

# Bottom line

HANYC presents data showing sharp declines in Canadian visitation and spending, plus lower hotel revenue and workforce numbers versus 2019. The association is urging federal-level negotiations with Canada to stabilize tourism flows that support tens of thousands of jobs and significant city revenue.

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