State launches $250 million campaign to support tourism industry

Gov. Kathy Hochul unveiled a $250 million effort to bolster tourism on Monday, as the federal government lifted restrictions on international travel for vaccinated visitors.

Hochul noted that tourism was among the industries hit hardest by COVID-19, with visitor spending down nearly 55% in 2020 compared with 2019. To ease the recovery, she said the state will provide $100 million in stimulus payments to unemployed hospitality workers and issue $100 million in grants to businesses that expand their workforce for at least six months.

The state Department of Labor will issue one-time payments of $2,750 to as many as 36,000 qualified workers in the tourism sector whose extended federal unemployment benefits have run out and whose earnings have yet to fully recover, Hochul announced. New Yorkers who are eligible will be contacted directly via text or email, she said.

To encourage hiring, qualifying businesses will be eligible for grants of up to $5,000 per net new full-time employee, or $2,500 per net new part-time employee. To receive the full benefit, employers will have to maintain employment increases over six months. Businesses that demonstrate the greatest workforce losses will be a priority, Hochul said. More information, including a sign-up for program-related email alerts, is available at esd.ny.gov/tourism-return-work-grant-program.

The state has also set aside $25 million in grants to help convention centers and conference spaces bring back business travelers. Another $25 million investment will bring the state's tourism marketing campaign to new domestic and international audiences, Hochul said.

The state is smart to "not just wait for the recovery, but to initiate it," according to Kristen Reynolds, president and CEO of Discover Long Island, which promotes tourism in the region.

The pandemic gutted the local hospitality industry, though it is further along in the recovery process than other domestic markets, Reynolds said. In 2019, tourism on the island supported about 6.2% of employment and generated nearly $760 million in state and local taxes, according to Discover Long Island. Reynolds noted that many businesses are struggling to hire and would use grants to raise wages or offer signing bonuses.

With Monday's lifting of travel restrictions, foreign tourists are expected back in the East End, which was becoming more of a destination among international travelers before COVID-19 hit, industry leaders said.

"It's such a competitive industry right now. Everybody is out to attract these lucrative visitors," Reynold said. "So the marketing really matters."

The Montauk Chamber of Commerce saw enough foreign visitors to consider advertising internationally, executive director Kay Tyler said. And Bruce Michael, a tour guide who works with Discover Long Island, showed travel agents from Australia around in an attempt to drum up business from Down Under.

"Had 2020 not happened the way it did, I have a feeling that those folks would have booked a significant amount of tours for their groups," said Michael, who feels optimistic about attracting such groups in 2022. "We just got the green light."

Hamptons businesses have benefited from an influx in domestic visitors. But with restrictions lifting, Americans who have avoided flying are likely to want to go abroad again, which could make international tourists more important, Tyler said.

Southampton Inn has been hearing from group tour operators overseas that want to sign contracts for 2022, according to owner Dede Gotthelf. These tours brought in about 15 to 20% of business at the 90-room venue before COVID-19 hit, she said. Still, regional travel has kept the Inn about 20% busier than normal, Gotthelf said.

"We’ve had a wonderful COVID bump, and we’re doing everything we can to not make it a bump, but to make it a way of life."

By Sarina Trangle

sarina.trangle@newsday.comSarinaTrangle

Sarina Trangle covers affordability and cost of living issues and other business topics. She previously worked as an editor and reporter at amNewYork.