NYC Faces $4B Loss as Tourists Vanish

New York City is staring down the barrel of a $4 billion loss as foreign tourists abandon the Big Apple, triggering a financial headache that’s got city leaders scrambling for answers and families in the hospitality industry worried about their next paycheck.

At a Glance

• NYC expects a “devastating” $4 billion drop in international tourism for 2025.
• Industry leaders blame the sharp decline on new federal immigration policies and global perceptions of the US.
• Hotel workers, small businesses, and city budgets are set to take the hardest hit from the drop-off.
• City officials say recovery to pre-pandemic levels is now delayed until at least 2029.

International Tourism Plummets, City Faces Multi-Billion Dollar Shortfall

Industry experts and city officials are sounding the alarm after forecasts revealed a staggering 17% plunge in international visitors to New York City in 2025. Compared to last year, two million fewer foreign travelers are expected, stripping the city of nearly $4 billion in spending that props up hotels, restaurants, and Broadway theaters. NYC Tourism + Conventions, the city’s official tourism agency, revised its projections downward in May, reflecting what CEO Julie Coker called a “disappointing and frustrating” stall in the city’s long-awaited recovery from the pandemic. The city’s hospitality sector—which relies heavily on big-spending international guests—now faces an uphill battle to avoid layoffs and closures.

Foreign tourism to NYC expected to see ‘devastating’ $4B drop this year according to industry experts https://t.co/Sx6bakVWBZ pic.twitter.com/lh7XJKsW9i

— New York Post (@nypost) July 25, 2025

Tourism Economics, an independent research group, echoed the bleak outlook, slashing its previous forecast of 9% growth to a 6% decline and warning that a full rebound to pre-COVID numbers won’t happen before 2029. City officials like Comptroller Brad Lander are bracing for a significant hit to tax revenues, spelling trouble for public services funded by tourism dollars. The ripple effect is already being felt, as small businesses and workers who depend on tourist foot traffic brace for a lean year ahead.

Trump-Era Immigration Policies Blamed for Chilling Effect

While domestic tourism has rebounded, international travelers are staying away in droves. Industry leaders and analysts point the finger squarely at the federal government’s latest immigration crackdown and the global headlines it generates. According to Julie Coker, international tourists typically make up just 20% of NYC’s visitors but account for a whopping half of its tourism revenue. Now, with the Biden years in the rearview and Trump’s second administration doubling down on tough immigration measures, the city’s global image has taken a direct hit.

Experts say restrictive visa policies, aggressive rhetoric, and new executive orders have made the US feel unwelcome or even risky to many would-be travelers, especially from Europe, Canada, and Australia. The city’s own tourism board admits it can do little to counteract the chilling effect of federal policy, even as it launches new campaigns to try to coax foreign visitors back.

Hospitality Workers and Small Businesses Bear the Brunt

The loss of international tourism dollars isn’t just a problem for city hall—it’s a gut punch for working families and entrepreneurs. Hotels, restaurants, Broadway shows, and tour operators are staring at empty rooms and seats they can’t fill with domestic travelers alone. Workers—many of whom are immigrants themselves—face cut hours or layoffs, and small business owners in Manhattan’s tourist hotspots are watching their bottom lines evaporate. The city’s tax coffers will take a hit, raising the specter of budget cuts for public services that everyday New Yorkers rely on.

Analysts warn that if the trend continues, New York risks ceding its status as a premier global destination. Other world cities—less bogged down by bureaucratic hurdles and negative headlines—are eager to scoop up the spending that NYC is losing. The long-term danger is that international tourists who go elsewhere this year may never come back, leaving a permanent hole in the city’s economic fabric.

City Leaders Call for Federal Action as Recovery Timeline Slips

In the halls of city government and the back rooms of Broadway, frustration is mounting. Local leaders know they have little power to change federal immigration policy, but they’re pleading for Washington to consider the economic fallout. Julie Coker and Comptroller Brad Lander have both publicly linked the downturn in tourism to the Trump administration’s actions, arguing that the policies are keeping international visitors away and hurting the city’s working class.

Meanwhile, officials are left to pick up the pieces, launching marketing blitzes and lobbying for friendlier policies in DC. The message from the city’s tourism and business leaders is clear: without a change in approach from the top, New York’s recovery will remain stalled, and the city’s reputation as a welcoming melting pot will continue to suffer. With billions on the line and livelihoods at stake, the stakes have never been higher.