MAYOR GIULIANI JOINS AIRLINE INDUSTRY TO OPPOSE HIKE IN FEDERAL AIRLINE TAXES
SAYS TAXES WILL HURT TOURISM, ECONOMY & JOBS IN NYC
(Kennedy Airport) Mayor Rudolph W. Giuliani today joined with representatives from United, American, Continental, Delta, Northwest, Trans World and US Airlines to voice his opposition to proposed Federal tax increases on air travel that would increase the cost of plane tickets and hurt New York City's booming tourism industry, the economy and related-industry job growth.
"I am proud to be here today with representatives of the airline industry to voice unified opposition to proposed Federal tax increases on air travel -- taxes that will hurt not only the airline industry and jobs here at Kennedy and LaGuardia Airports, but the growing tourism industry in New York City as well," the Mayor said.
"Last year, New York City set an all-time record for tourists -- more than 31.2 million visitors came to New York City -- many of them by air," the Mayor continued. "And this year, we expect the number to exceed more than 31.9 million. Job growth in both the tourism and restaurant industries put them among the top ten job growth industries in New York City from 1994 to 1996. And that expansion continues in 1997 with job growth in each of those areas up 13 percent when compared to 1994.
"But proposed Federal taxes on air travel will certainly hurt New York. In New York City, we are determined to learn from the mistakes of the past. We know that when we lower taxes our economy often becomes revitalized, jobs increase and the City becomes strengthened as a whole. Conversely, we also know that a heavy tax burden is a disincentive to growth and stifles new opportunities.
"As an example, since we lowered our Hotel Occupancy Tax from the highest in the world to a level that has, once again, made us competitive with other major cities, New York City has experienced three straight years of soaring occupancy rates -- setting a record last year at 81 percent," the Mayor concluded.
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