NEW YORK (BLOOMBERG) -- New York City’s taxable leisure and hospitality revenue is on pace to exceed pre-pandemic levels as the return of tourists and commuters fuels gains, state Comptroller Thomas DiNapoli said.
In the first three quarters of the year that ended in February, taxable sales in New York City’s leisure and hospitality industries grew by 52.2% compared with the year earlier, while the rest of the state grew only by 9.5%, DiNapoli said in a report Tuesday.
“The return of travelers and office workers helped drive New York City’s rebound in collections last year and tourism-related sectors such as leisure and hospitality continue to recover from their pandemic lows,” DiNapoli said.
However, sales increases have begun to slow and the comptroller said he expects the growth rate to return to historical levels in the next two state tax years.
New York City, the original US epicenter of the coronavirus pandemic, was battered by the lockdowns and a plunge in tourism. Total taxable sales in the city fell by $42.4 billion to $140.1 billion between 2020 and 2021, while the rest of the state remained relatively stable, DiNapoli said. The leisure and hospitality sectors were especially hard-hit, dropping 66% to $13.2 billion in the same period.
This story originally appeared on Bloomberg.com.