"Our industry is already grappling with a 20% decrease in hotelrevenue over last year, in November alone," says John Fitzpatrick,president and CEO of the Fitzpatrick Manhattan Hotel and thechairman of the Hotel Association of New York City, in a preparedrelease. "This tax increase, on top of the 14.54% our customersalready pay" in the form of other state and local taxes in additionto the room tax--"is a lump of coal in a holiday stocking that willdrive visitors away. The net result will be reduced revenue for thecity and the state and increased job losses at hotels and thebusinesses we support."

In the release, the association cites an analysis conducted bySean Hennessey, CEO of Lodging Advisors. Hennessey's data projectedthat even a 1% increase on the hotel tax would cause a loss of morethan $533 million in room sales and associated visitor spending,3,716 jobs in the hotel industry and businesses supported by hotelsand more than $162 million in wages at hotels and businessessupported by hotels.

"This tax would make New York City's combined hotel rate thesecond highest in the country after Houston," says Hennessey in arelease. "Instead of generating new revenues, any increase in taxescould have the opposite effect. More taxes on top of astrengthening US dollar could divert tourists and travelerselsewhere or cause them to shorten their stays."