Overall year-end 2003 figures have yet to be released, but the latest projections reflect an increase of 1.2 million visitors from 2002, up 3.5% to 36.5 million, a record number of visitors to New York City. The travel outlook for the domestic visitor market is set to break records as well, with an estimated 31.7 million visitors in 2003 outpacing the smaller but more lucrative international market which lagged overall in 2003 but showed a surge in strength at the end of 2003 and into early 2004.

Major hotel development continues, with notable examples including the recently opened Hotel Gansevoort, the Four Points by Sheraton Manhattan Chelsea, the Mandarin Oriental Hotel, and The Alex. More than 1,400 new rooms joined New York City's hotel inventory in 2003 and nearly 1,300 additional rooms are under construction, reflecting the continued confidence of the hospitality industry in New York City's tourism product.

Planned infrastructure investments in the rapidly growing cruise industry, an expanded convention center, and proposed transportation projects, as well as an architectural renaissance, will strengthen New York City’s future as the premier visitor destination for conventions, business, domestic, and international travel.

• Sixty-eight percent of the respondents said that terrorist attacks in the U.S. are the single biggest threat to a sustained lodging industry recovery, while 26% said the economy is the biggest threat. The current situation in the Middle East was recorded by only 6% of the respondents as the biggest threat to recovery.
• Fifty-eight percent did not think increased terrorist attacks around the world in the recent months posed a threat to travelers coming to New York City.
• All of the respondents predict year-end 2004 occupancy levels will be higher than year-end 2003, at an average of 6.5%.
• Ninety-three percent forecast that year-end 2004 average rates will be higher than 2003, $7.50 higher than the previous year.
• All respondents thought RevPAR for year-end 2004 would be higher than year-end 2003, at an average of $11.25.
• Asked when they thought the Manhattan market would again reach historical 2000 occupancy levels, 14% said by 2005, 45% by 2006, 11% by 2007, and 31% said by 2008.
• Asked when they predicted the Manhattan market would again reach year-end 2000 ADR levels, 3% said by 2005, 21% by 2006, 41% by 2007, and 34% said by 2008.
• When asked how their traveler profile (international vs. domestic) has changed, 35% of the responses indicated fewer international travelers while 29% indicated more domestic travelers.
• As the Euro is currently stronger than the U.S. dollar, only half (53%) of the respondents stated they had seen an increase in European travelers at their respective properties with the UK, Germany and Italy being the most mentioned countries with increased travelers.
• Eighty-seven percent of those surveyed stated that Europe was the strongest generator of international travelers to their respective hotels.
• When asked whether their participation with Internet distributors that sell portions of their room inventory had been positive or negative to their bottom line, 63% said it had been positive mainly because of increased occupancy. A majority of the remaining 37% stated that Internet sales had lowered their ADRs.
• When asked the level of participation in third-party websites in 2004 compared with 2003, 48% said it would decrease, 28% said it would increase, and 24% said it would not change. An average of about 15% of respondent business is booked through third-party websites.
• Sixty-seven percent of those surveyed stated they thought the Manhattan recovery began during the second half of 2003, while 17% think it will begin in 2004, and 13% believe real recovery has not yet occurred.
• When asked what will have the greatest influence on the pace of the recovery, 38% of the responses indicated revival of corporate travel, 28% mentioned fear of terrorism, while 20% indicated the rate of job growth.
• Fifty-nine percent thought an increase in rooms demand would be the prime indicator of recovery in Manhattan hotels; 41% thought the indicator would be increased RevPAR.
• Ninety percent of the responses indicated a continuing of short booking windows for both group and transient business travelers, as well as leisure travelers.
• Upscale (36%) and Midscale with food and beverage (25%) were the market segments respondents felt would show the quickest signs of recovery.
• Finally, most respondents (97%) felt both business and leisure travel will increase in 2004, compared to 2003. Fifty percent feel that business travel will increase more than 10%, while 50% feel leisure travel will increase less then 10%.