wigstheone
Dec 22, 01, 10:24 am
New York's hotel industry, along with the national economy, showed signs of weakness even before the terrorists destroyed the World Trade Center on Sept. 11. But those attacks plunged New York and large parts of the tristate area into an economic tailspin almost overnight and had a drastic impact on tourism.
A record 37.4 million people visited New York in 2000, but 5.4 million fewer will have visited the city by the end of this year, according to projections this month by NYC & Company, New York City's official tourism organization. As a result, New York hotel occupancy this year is expected to plummet to 72.5 percent from last year's record 84.6 percent, according to John Fox, the hotel industry analyst for PKF Consulting. And with at least five major hotels preparing to open next year — adding a total of more than 2,000 rooms — Mr. Fox projected that occupancy would fall to 68.5 percent next year.
To add to the industry's woes, next year's room rates — which averaged $237 in 2000 and are expected to average $206 this year — are forecast by Mr. Fox to tumble to $181 in 2002. If so, it would be the first time since 1997 that average rates were below $200.
Whether so many out-of-towners are staying away because of the recession, because they fear flying, or because they are reluctant to visit the city that suffered the most from the terrorist attacks, the effect has been devastating not only to hotels but also to such other pillars of New York's tourism industry (projected at $14.9 billion this year) as restaurants, theaters, museums and scores of retail shops, big and small.
The latest statistics available for New York hotels are nothing to cheer about, but they are better than most travel industry officials were expecting just after Sept. 11. Still, while occupancy averaged 70.7 percent in October and is estimated to be about 73 percent for November, that is well below the 86.5 and 86 percent occupancy levels of those months last year.
http://www.nytimes.com/2001/12/23/travel/23REP.html
A record 37.4 million people visited New York in 2000, but 5.4 million fewer will have visited the city by the end of this year, according to projections this month by NYC & Company, New York City's official tourism organization. As a result, New York hotel occupancy this year is expected to plummet to 72.5 percent from last year's record 84.6 percent, according to John Fox, the hotel industry analyst for PKF Consulting. And with at least five major hotels preparing to open next year — adding a total of more than 2,000 rooms — Mr. Fox projected that occupancy would fall to 68.5 percent next year.
To add to the industry's woes, next year's room rates — which averaged $237 in 2000 and are expected to average $206 this year — are forecast by Mr. Fox to tumble to $181 in 2002. If so, it would be the first time since 1997 that average rates were below $200.
Whether so many out-of-towners are staying away because of the recession, because they fear flying, or because they are reluctant to visit the city that suffered the most from the terrorist attacks, the effect has been devastating not only to hotels but also to such other pillars of New York's tourism industry (projected at $14.9 billion this year) as restaurants, theaters, museums and scores of retail shops, big and small.
The latest statistics available for New York hotels are nothing to cheer about, but they are better than most travel industry officials were expecting just after Sept. 11. Still, while occupancy averaged 70.7 percent in October and is estimated to be about 73 percent for November, that is well below the 86.5 and 86 percent occupancy levels of those months last year.
http://www.nytimes.com/2001/12/23/travel/23REP.html