In the ultimate economic Catch-22, New York's tourism office is worried that European travelers—who've been keeping the city afloat in these tough times—may stop coming now that the dollar is rising in value. XE currently says one Euro is worth $1.23, the lowest rate in a year. But NYC & Co, chief George Fertitta isn't worried yet, telling Crain's [subscription required], “European visitors who want to experience the energy and excitement of New York City will visit regardless of the cost and distance."
Hotel occupancy rates in the city were at their peak at 80% last year, compared to 55% nationwide, and hotel prices were lower than ever, luring over 3 million European visitors. However, there are worries that a stronger dollar will mean more New Yorkers heading overseas, rendering the buzzword "staycation" completely useless. PKF Consulting head John Fox said, “When the dollar was very cheap against the euro, it brought a lot of Europeans here, but it also kept U.S. travelers in the U.S. Now American travelers are thinking, "Ooh, now I can go to London or maybe Paris.'" But which side of the sidewalk do we stay on over there?
