Not to throw shade at the head of the Hotel Association of New York City, but his recent support of Mayor Bill de Blasio's summer-long waiver of Hotel Room Taxes is perplexing, at best, and reckless, at worst.
Don't get me wrong, there are some destinations where $18 a night might influence a potential visitor to choose another city. But, honestly? This is freakin' New York City. A destination that isn't up for debate on haggling over price. It's also a City with a pandemic-induced budget hole that could use those revenues to shore up other parts of the economy or infrastructure. To forfeit an estimated $30 million of tax revenue on a feel-good gimmick that's simply not needed to jump start the hotel sector is amazingly short-sighted.
The consumer tax savings on a $300/night room is roughly $18, it's $12 on a $200/night stay and $6 on a $100/night stay. So, don't call me elitist when I say people wouldn't let $18 blur their desire. That's a drink in the hotel bar for people willing to spend $300 a night...and a hot dog for those attempting to be frugal.
If the powers at work here really want to help, don't waive the Room Tax. Use it to subsidize a portion of theatre tickets so the theaters and their crews and companies are made whole...but that tickets are more affordable to the tight-fisted (but culturally sophisticated) consumer this summer. That will capture people's attention. Broadway on Sale for one Summer only? That will cause theatre goers that might fear an unmasked city to take a chance and return. The same with admissions to sporting events and museums. And, let's find a way to help our restaurants come back.
The Mayor deserves huge props for dedicating $30 million in recovery funding for the work of NYC & Company. But, forgiving a fee that hardly anybody notices when there are so many ways to maximize this revenue? Unforgivable.
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