With over 15 million guests visiting each year, Brooklyn is New York City’s second-most visited borough. Despite this, many tourists to one of the world’s most visited cities and New York City’s most populous borough don’t make it past Dumbo or Williamsburg.
Having visitors choose Brooklyn over Manhattan or another borough is to our benefit. It creates jobs, generates spending, and fuels our economy, driving a diversified and healthy tourism industry. Yet, the economic benefits of tourism are not evenly distributed across New York City’s diverse communities and limiting tourism accommodations – as New York City did last year – widens the gap even further.
Last year, New York City passed Local Law 18. This essentially banned short-term rentals and introduced complicated and sometimes ridiculous restrictions about what short-term rental operators can do on their own properties, including requiring that the host be home for the duration of the stay. The unintended consequences of this legislation, especially the steep decline in places for tourists to stay, are hindering Brooklyn’s potential to attract visitors and is hurting its residents, small businesses, and local economy.
The Brooklyn Chamber of Commerce has been hearing consistent feedback from our community and local businesses regarding the adverse effects of these short-term rental regulations. The opportunity cost is immense — we are losing a demographic of travelers who might have chosen Brooklyn over Manhattan if only they had affordable places to stay.
Local Law 18 dealt Brooklyn a painful blow, just as we were bouncing back from the pandemic’s economic hardships. Short-term rentals play a crucial role in filling in for the limited hotel supply. This shift forces Brooklyn-goers to be day trippers instead of overnight spenders, which significantly impacts the borough’s appeal and local businesses. Overnight visitors typically stay longer and spend more at restaurants, shops, and cultural attractions, whereas day-trippers contribute far less to the local economy.
With the majority of hotels concentrated in Manhattan, NYC’s short-term rental rules make it difficult for Brooklyn businesses to capitalize on the full economic potential of tourism. Some local business owners, like Calvin Sennon of Canarsie’s TriniJamBK, have seen a 70%t decrease in new customers. Our local economy is paying the price for Manhattan-centric legislation that did not take the outer boroughs into account.
The lack of accommodations also affects family visits within immigrant communities. Many families prefer to stay in familiar neighborhoods like Canarsie or Brighton Beach when they visit relatives, and not over the bridge in expensive Manhattan. Without affordable short-term rentals, they are often forced to cancel their trip or cut their visits short.
When government regulations stifle business, they inadvertently harm local economies and limit opportunities for residents. Such policies extend beyond the immediate loss of tourist dollars – they disrupt the delicate balance of urban economies, reduce resident entrepreneurship, and stifle the economic vitality of historically marginalized communities. It’s imperative that local governments recognize the broader impacts of their decisions and strive to foster, rather than hinder, the economic vitality and inclusivity that short-term rentals can offer.
While the intentions behind restricting short-term rentals may have been good, the reality has been a significant setback for Brooklyn’s tourism and local economy, without the corresponding promised increase in rental housing availability the government hoped for. We hope the City Council carefully revisits the law to support the local homeowners and economic development of communities in the outer boroughs.
This situation serves as a cautionary tale for other cities considering similar short-term rental restrictions. Cities around the world need a sensible and balanced approach— whether allowing homeowners to rent their homes while away for a weekend or during major festivals, concerts and events which bring an influx of visitors. Our communities need sensible policies. Attempting to solve the housing crisis while creating a tourism crisis is not the solution.
Randy Peers is President and CEO of the Brooklyn Chamber of Commerce
