International corporate and incentive travel to New York City is experiencing a small rejuvenation this summer. The city's destination managers reported increased interest from overseas travelers, owing to a weak dollar and a thawing political climate. The challenge, they said, is finding exciting, low-cost activities for budget-conscious travelers in a city known more for its luxury than its bargains.
According to NYC & Co., formerly the New York City Convention Bureau, the city received an estimated 1.2 million international visitors between Memorial Day and Labor Day this year—an 8 percent increase from 2004 levels. International visitors to the entire United States increased only 3.5 percent during that period, a disparity that didn't surprise those in the business.
The continued weakness of the U.S. dollar, they said, is making America's cities irresistible, and New York has added some economic incentives of its own. For example, the city, already among the world's top shopping destinations, no longer charges sales tax on clothing under $110, as of Sept. 1.
"People are very budget-conscious these days," said Ina Lee Selden, president of destination management firm Manhattan Passport. "The weakness of the dollar is hard to resist."
It's a significant change from just a few months ago.
"We got hurt this fall with corporate incentives because the government was threatening to do those digital passports
(BTN, June 20)," said Selden. "People have so many choices these days, they decided they weren't going to spend another 10 bucks for another passport."
Karen Shackman, president of destination management firm Shackman Associates International, cited the impact of corporate procurement offices as well.
"They look at every single expense now," she said. "They're more involved in pricing, making sure there aren't too many bells and whistles."
According to the destination management company executives, "starry-eyed" hotel operators are the biggest threat to New York's desirability.
"Hotel managers are seeing the dollar being low and seeing increased traffic toward the United States," said Selden. "In their usual effort to maximize profits wherever they can—and not think about the long-term implications—they have raised rates."
"The main thing working against New York is the hotel rates," agreed Shackman. "Because hotel rates have gone so high, even with the exchange rate, New York is not as much of a bargain as visitors would like it to be."
Perhaps because of those rates, the groups traveling to New York seem to be smaller these days. Planners said people are coming in groups of 20 or 30, as opposed the hundreds they were just a few years ago.
Even with the increasing price of a hotel room in New York, the city itself remains a desired-enough destination that most travelers are willing to absorb the extra cost.
"A lot of people are coming," said Shackman. "New York is extremely hot, as evidenced by the number of tourists coming here."
In order to offset the rising cost of accommodations, however, visiting groups are trending toward more inexpensive activities in the city.
"We are trying to get as much value packed into packages as possible," said Selden. "We're always looking for things to do out there that increase value without costing too much."
Popular activities require some resourceful planning. For example, "everyone wants to go to a Broadway show," said Shackman. In order to squeeze more entertainment value out of it, destination management companies sell packages that include meeting the cast after the show. The option costs about $5 per guest and provides a memorable New York experience.
Also, free tours to the Federal Reserve Bank, and its room of gold bricks, are popular, as are backstage tours at Madison Square Garden and photo ops on the just-opened observation deck of Rockefeller Center.
Cutting down on transportation costs through increased walking time is popular as well—an option uniquely suited to New York.
"The people love it, but the planners are shy about asking people to walk," said Manhattan Passport's Selden.
"People want to have a hands-on experience rather than sit back and listen to the tour guide," added Shackman.
Even some of New York City's most obscure attractions are known throughout the world, so overplanning attendees' itineraries can backfire.
''We're very big on educating clients about finally [understanding that] you can bring people to New York and not have to keep them busy all the time, that one of the things that people enjoy most about New York is being left alone," said Selden.
DMC executive Shackman concurs, explaining that international travelers in particular boast a high IQ when it comes to New York life.
"International travelers are a lot more savvy about New York," Shackman said. "A lot of them are very aware through international publications what areas of the city are hot.
"They're not sitting back waiting for us to make reservations."