The US government shutdown – now moving into its fourth week – has resulted in an estimated $650m in lost hotel business, according to the American Hotel & Lodging Association (AHLA).
The association has joined with 30 industry associations representing hotels across the country in sending a letter to the leaders of the US House of Representatives and Senate urging them to end the gridlock and restore services that impact travel and tourism.
AHLA quoted economic analysis (without specifying the source) which claimed each day of the government shutdown costs the economy $31m in activity that would’ve been generated by hotel stays.
“The government shutdown is having a devastating impact on the hotel, travel, and hospitality sectors. Economic uncertainty and waning consumer confidence are translating into booking cancelations and discouraging future planning especially as we head into the heart of the holiday travel season,” said Rosanna Maietta, president and CEO of the AHLA. “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.”
“When the government shuts down, uncertainty ripples across every community,” said Asian American Hotel Owners Association chairman Kamalesh (KP) Patel. “Conferences get cancelled, families postpone trips, and hotels lose valuable business. Congress must act quickly to restore confidence, reopen the government, and support the industries that keep America’s economy moving.”
AHLA underlined that the hotel and lodging industry supports 2.1m direct jobs and nearly nine million total jobs nationwide. Hotels generate more than $894bn in GDP annually and contribute $85bn in state, local, and federal taxes combined.
The government shutdown was triggered on 1 October over political disagreements between Democrats and Republicans over budget spending and the extension of subsidies for the Affordable Care Act (ACA) marketplaces. Republican lawmakers have claimed the Democrats are looking to provide tax dollars to help pay for the heath care of undocumented immigrants. The Democrats deny this and oppose spending cuts to government health agencies. Under the US system, Congress must agree on a spending plan to send to the President to sign into law. Although Republicans control both Chambers of Commerce, in the Senate they are short of the 60 votes needed to pass the spending bill.
