Underfunded NYC Tourism Bureau Pushes for First Major Budget Increase in Nearly 20 Years

NYC Tourism + Conventions is pressing for an $11.9 million increase in city funding. This will raise its annual appropriation to $35 million, restoring funding excluded from Mayor Zohran Mamdani’s FY27 executive budget. 

Its public funding has remained effectively flat for nearly two decades, while competing destinations are expanding their tourism marketing and convention sales budgets.

“While New York City remains one of the world’s strongest destinations for meetings, conventions, and major events, the current funding shortfall limits our ability to compete as aggressively as other cities that are significantly increasing their tourism and convention sales investments,” said Julie Coker, president and CEO, New York City Tourism + Conventions. 

The push comes as destinations across the U.S. continue to expand tourism marketing budgets and reshape how they fund destination promotion.

Chicago, for example, recently approved a Tourism Improvement District that will increase hotel taxes and expand funding for marketing. Even with that change, Choose Chicago says its roughly $34 million marketing budget still trails competitor cities.

By comparison, the Las Vegas Convention and Visitors Authority operates on $460 million annually, largely supported by room taxes and gaming revenue, while Visit Orlando’s latest budget is $105 million in tourism development funding.

NYC Tourism + Conventions says the gap puts the city at a competitive disadvantage in attracting conventions and events, particularly as it prepares for America250 and the FIFA World Cup 26.

Back to Pre-Pandemic Levels

The city welcomed 65 million visitors in 2025, up 0.7% over 2024. Domestic travel rose to 52.4 million, up 1.7% over 2024, while international travel declined 3.2% to 12.5 million. Overall visitation remains close to pre-pandemic levels, but still slightly below its 2019 peak of 66.6 million visitors. 

Tourism generated $84.7 billion in total economic impact, including $55.6 billion in direct spending and $7.5 billion in local and state taxes.

“Destinations, including Los Angeles, Chicago, and Boston, are putting substantially more resources behind attracting business and leisure travel, including conventions and corporate events that generate year-round economic impact,” said Coker. “New York continues to benefit from its global reputation and unmatched appeal, but we cannot assume planners and visitors will choose the city automatically when competing destinations are investing more heavily in sales, marketing, and incentive efforts.”

NYC Tourism + Conventions argues that its public funding has not kept pace with inflation or the growing competition from other cities. The organization has increasingly relied on private-sector partnerships to fill the gap.

Cristyne Nicholas, CEO of Nicholas & Lence Communications and former CEO of NYC & Company, backs the funding push, arguing that a better-funded tourism agency will generate a strong return for the city.

“Mayor Mamdani has an ambitious budget, and to make our city more affordable and pay for the free things he campaigned on, NYC’s tourism industry is one of the fastest and strongest revenue generators with a high ROI,” said Nicholas. “Show it some love and make an investment that will yield very high returns for all New Yorkers.”

Industry associations, including SITE, PCMA, MPI, ILEA, IAEE, and HSMAI, asked members to sign a letter supporting this budget increase. 

A spokesperson for Mayor Mamdani's office did not respond to a request for comment.