Will NYC Congestion Pricing Affect Tourism?

After decades of discussion and consideration, the state of New York finally went ahead and did it.

Congestion pricing is coming to New York City.

The state legislature approved the measure as part of its 2020 budget that passed earlier this week, meaning that anyone who drives in Manhattan below 60th Street will have to pay for the privilege.

A pricing structure has not been implemented yet but government officials already mandated that 80 percent of what is collected at the tolls to be implemented to enter NYC at 60th Street or below will go to fixing the city’s outdated mass transit system.

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Congestion pricing is similar to dynamic pricing on tickets to sporting events—many teams charge fans more to see games against the best opponents or natural rivals than they do for other events.

But will congestion pricing affect tourism to the Big Apple?

With all due respect to the Metropolitan Museum of Art, the Museum of Natural History, all of Central Park and thriving neighborhoods such as the upper east and west sides and Harlem, virtually every major tourist attraction in Manhattan is below 60th St.

That includes everything from Rockefeller Center to the 9/11 Memorial, Statue of Liberty, Madison Square Garden, Broadway and the theater district, the Empire State Building, Times Square, the Museum of Modern Art, the Javits Convention Center, the Brooklyn Bridge, the High Line, St. Patrick’s Cathedral...you get the idea.

Now, New York City drew a record 65 million tourists last year. A good majority of them either flew or took the train, and use New York’s subway system or taxis. Driving, even for city residents, is a nightmare in the city.

Still, the tourists that likely will be affected the most are the ones closest to the city—from the outer boroughs like Brooklyn, the Bronx, Queens and Staten Island, as well as New Jersey to the south and west, Long Island to the east, and affluent Westchester and Rockland counties to the north.

Millions upon millions of residents of these areas take day trips into the city, or come in for a game, a show, or dinner. Even short, benign trips like that are already affected—a judge ruled earlier this year that the city can have taxis add a $2.50 surcharge for congestion pricing trips, and Uber and Lyft and limos can add $2.75.

Moreover, last week, the toll to drive over the Verrazzano–Narrows Bridge went up to $19 each way, the most expensive toll in the nation.

And not only will tourists be affected, but even businesses are concerned. Right now, the congestion pricing plan as written does not include exemptions for those making deliveries into Manhattan below 60th Street.

So far, nobody knows whether congesting pricing will have a drastic effect on tourism. Part and parcel, it might not be more than just a small dent in the wallet. Collectively, however, it remains to be seen.