US: The government shutdown in the United States has cost the hotel industry $650 million in lost business to date, according to a letter sent by industry associations to the House of Representatives and Senate.
On 1 October, the United States government officially shutdown due to a budget stalemate. Republicans and Democrats failed to reach an agreement on a bill to fund government services beyond the expiration of the federal budget.
Now in its fourth week, the American Hotel and Lodging Association (AHLA) estimates that it is costing the economy $31 million per day in lost hotel business.
More than 30 hospitality industry associations, including the Asian American Hotel Owners Association, Latino Hotel Association, and the National Association of Black Hotel Owners, Operators and Developers, have sent a joint letter to US leaders, urging Congress to “come to a speedy agreement”.
It stated: “The uncertainty created by the shutdown interferes with hotels’ ability to prepare for the holiday season, traditionally one of the busiest times of the year. Experience tells us that an ongoing federal government shutdown will cause travel delays and weaken traveller confidence, resulting in trip postponements and cancellations. It translates into significantly fewer hotel guests, airline passengers, restaurant diners, and visitors to local cultural institutions.”
Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, said: “The government shutdown is having a devastating impact on the hotel, travel, and hospitality sectors. These essential industries fuel our economy and we need our leaders in Washington to come together now and vote to reopen the government as soon as possible.”
According to AHLA, the hotel and lodging industry supports 2.1 million direct jobs – one out of every 25 in the US economy – and nearly nine million total jobs nationwide.
Highlights:
- The US hotel industry is estimated to be losing $31 million per day due to the ongoing federal government shutdown.
- Total losses have reached $650 million since the shutdown began on 1 October.
- Over 30 hospitality associations, including AHLA and AAHOA, have urged Congress to end the stalemate.
- Shutdown uncertainty threatens holiday travel demand, leading to cancellations and revenue declines.
- The hotel industry supports 2.1 million direct jobs and nearly nine million total jobs across the US.