Despite rising hotel prices and a “ban” on Airbnb bookings, tourists are flocking to New York to vacation.
Videos show tourists crowding streets and popular destinations like Rockefeller Center and 5th Avenue. In many cases, people can hardly move because of the many tourists.
Crowds continue to flock to the Big Apple despite the city's recent “ban” on Airbnb bookings under 30 days.
Since restrictions on short-term rentals went into effect in September, the city has seen a rise in hotel prices and occupancy as the number of places to stay while vacationing has shrunk.
In November, hotel occupancy rose to 84 percent, compared to 79 percent the previous year. The average nightly rate increased 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 compared to the same period last year.
Around 62 million visitors visited New York City in 2023, but those arriving during the holiday season may struggle to find accommodation as occupancy and prices skyrocket
Restrictive new short-term rental policies came into effect in September, requiring hosts on platforms like Airbnb to seek approval for listings for less than 30 days
The new guidelines appear to be increasing interest in hotel rooms, as searches for hotels increased 25 percent in the last two weeks of December compared to last year
Hotel occupancy also rose from 89.6 percent in the previous year to 90.3 percent.
Taylor Marr, housing market economist at Airbnb, expressed concerns that tourists could be “excluded from visiting the city.”
“Visitors to New York City will have fewer lodging options because of the rule change, which means less choice and higher prices,” Marr told Wired.
This could lead to “economic losses for local workers and businesses,” he explained.
Airbnb has been struggling in New York City since the city imposed several burdensome regulations on short-term rentals. Hosts must register with the city to rent accommodation 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 require hosts to stay in the same location as guests and keep bedroom doors unlocked.
As of Monday, the office had received more than 5,000 applications from hosts. Of these, 971 were approved, 732 were rejected and more than 2,000 were returned for further information.
The city argued that offers through platforms such as Airbnb drove up rents and contributed to the housing shortage. But critics say the rule change will mean tourists will struggle to find accommodation.
“The city is sending a clear message to millions of potential visitors who now have fewer lodging options when visiting New York City: You are not welcome,” Theo Yedinsky, global policy director at Airbnb, told The New York Times.
These strict guidelines appear to be increasing 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.
As of November 2022, 79 percent of hotel rooms were occupied, with an average cost of $307 per night. A year later it was 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 don't appear to have deterred tourists, with videos posted on social media showing tightly packed crowds at popular destinations like Rockefeller Plaza and the Saks on Fifth storefront.
One TikTok captured crowds standing at the Christmas tree and a line stretching across the block. People in the middle of the crowd craned their necks, trying to catch a glimpse of the twinkling lights.
In the comments below, visitors complained about the crowded streets and winding lines.
“Yes, that happened to us yesterday. “It was so crowded I had a panic attack,” one woman remarked.
“On Saturday evening we couldn’t move two blocks from the tree. “Thank God we left in the morning too,” another user wrote.
Local New Yorkers expressed equal anger when one man commented, “I'm from Queens and haven't been to Manhattan in years for this very reason. 'I hate how crowded 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 and 10,000 new rooms are expected to open in the next three years
The city is expected to become even busier in the coming years. According to New York City Tourism + Conventions, around 64.5 million people are expected to visit in 2024.
CoStar data shows the city's tourist numbers have recovered to 93 percent of pre-pandemic levels.
Estimates for next year would be around 3 percent below 2019's record of 66.6 million visitors.
To meet increasing demand, more than 70 new hotels are expected to open in the next three years, providing 10,000 additional rooms, according to the city's tourism organization.