Hotel prices in New York have risen 10% as tourists pack the city streets for the holidays after the city passed an Airbnb ban that crippled the Big Apple's rental industry
Tourists are flocking to New York for the holiday experience, despite rising hotel prices and a 'ban' on Airbnb bookings.
Videos show tourists packing streets and popular destinations such as Rockefeller Center and 5th Avenue. In many cases, people can hardly move given the number of tourists.
Crowds continue to pour into the Big Apple, despite the city's recent “ban” on Airbnb bookings of less than 30 days.
Since restrictions on short-term rentals went into effect in September, the city has seen a spike in hotel prices and occupancy rates as the number of places to stay during the holidays dwindles.
In November, hotel occupancy rose to 84 percent, compared to 79 percent last year. The average nightly rate rose to $333 from $307 in 2022.
In the first week of December, the average hotel cost in New York City was $477, an increase of $61 from the same period last year.
About 62 million visitors visited New York City in 2023, but those arriving during the holidays may struggle to find a place to stay as occupancy rates and prices rise
In September, a restrictive new policy for short-term rentals went into effect, requiring hosts on platforms like Airbnb to get approval for listings of less than 30 days
The new policy appears to increase interest in hotel rooms as searches for hotels increased 25 percent year-on-year in the last two weeks of December
Hotel occupancy also rose to 90.3 percent, compared to 89.6 percent a year earlier.
Taylor Marr, a housing market economist at Airbnb, expressed concern that tourists could be “priced out of visiting the city.”
“Visitors to New York City will have fewer lodging options as a result of the rule change, which means less choice and higher prices,” Marr told Wired.
This could result in “economic loss for local workers and businesses,” he explained.
Airbnb has run into problems in New York City since the city introduced several burdensome rules for short-term rentals. Landlords must register with the city to rent a space for less than 30 days.
To collect fees for these stays, booking companies must verify that a host's registration application has been approved by the Office of Special Enforcement.
Other rules state that hosts must stay in the same place as guests and keep bedroom doors unlocked.
As of Monday, the office received more than 5,000 requests from hosts. Of these, 971 were granted, 732 were refused and more than 2,000 were returned for additional information.
The city argued that homes offered through platforms such as Airbnb were driving up rents and contributing to the housing shortage. But critics say the rule change will leave tourists struggling to find a place to stay.
“The city is sending a clear message to millions of potential visitors who will now have fewer lodging options when they visit New York City: you are not welcome,” Theo Yedinsky, Global Policy Director for Airbnb, told the New York Times.
This strict policy seems to increase interest in hotel rooms. According to data from Expedia Group, hotel searches increased 25 percent year over year in the last two weeks of December.
Searches for hotels in Times Square are up 55 percent, and neighborhoods like Chelsea, Central Park South, Union Square and Herald Square are also seeing increases.
In November 2022, 79 percent of hotel rooms were occupied, while the average nightly rate was $307 per night. A year later, these figures were 84 percent and $333
Tourist numbers in the Big Apple are steadily approaching pre-pandemic levels and have recovered to 93 percent
But higher hotel prices do not appear to have deterred tourists, as videos posted to social media show densely packed crowds at popular destinations such as Rockefeller Plaza and the Saks on Fifth window display.
One TikTok captured stationary crowds near the Christmas tree and a line stretching down the block. People sitting in the middle of the crowd craned their necks to try to catch a glimpse of the twinkling lights.
In the comments below, visitors lamented the busy streets and winding lines.
'Yes, that happened to us yesterday. It was so full I had a panic attack,” one woman commented.
“On Saturday night we couldn't move for two blocks from the tree. Thank God we went in the morning too,” another user wrote.
Native New Yorkers seemed just as annoyed, as one man noted, “I'm from Queens and haven't been to Manhattan in years for this reason. I hate how busy it has become.”
Amid rising costs, tourists continue to flock to popular destinations like Rockefeller Plaza (pictured)
As demand continues to rise, more than 70 new hotels are expected to open in the next three years, creating 10,000 new rooms
It is expected that the city will only become busier in the coming years. About 64.5 million people are expected to visit the country by 2024, according to the New York City Tourism + Conventions.
CoStar data shows that tourist numbers in the city have recovered to 93 percent of pre-pandemic levels.
Estimates for next year would be about 3 percent lower than 2019's record level of 66.6 million visitors.
To meet rising demand, more than 70 new hotels are expected to open over the next three years, creating an additional 10,000 rooms, according to the city's tourism association.