Government Shutdown Costs U.S. $152 Million Per Day in Lost Travel Spending

Now entering its third week, the shutdown of the federal government is costing the U.S. economy billions of dollars every day — including $152 million per day in economic output due to lost travel-related activity, affecting as many as 450,000 American workers supported directly or indirectly by the travel industry, according to the U.S. Travel Association, which released an analysis of the shutdown on Friday.

“The government shutdown is throttling America’s travel sector, which, until now, has been one of the principal drivers of U.S. economic recovery,” U.S. Travel Association President and CEO Roger Dow said in a statement. “Every day the government is shut down is another $152 million down the drain and another day of financial insecurity for as many as 450,000 U.S. workers whose livelihoods are supported by travel.”

Travel is America’s No.1 services export, pointed out U.S. Travel, which said the travel industry has added jobs faster than the rest of the economy since the U.S. economic recovery began in 2010.

“Shutting down the government is damaging, and every day the government remains closed compounds the very real consequences,” Dow continued. “America’s travel leaders call on the president and Congress to reach an agreement to immediately reopen the government and keep it open.”

Impact on Hotels

Separately, the American Hotel & Lodging Association (AH&LA) reported last week that the government shutdown is costing U.S. hotels more than $57.6 million in economic activity every week.

“For every day that passes that President Obama and Congress are not at the negotiating table seeking an end to this crisis, the American economy — and the lodging industry — continue to suffer,” AH&LA President and CEO Katherine Lugar said in a statement. “Hoteliers are a major economic driver and job creator across the country, and the industry’s ability to continue its growth is hamstrung by inaction from our policymakers. The administration, House of Representatives and Senate need to act swiftly in the best interests of the entire nation and end this shutdown.”

AH&LA has sent a letter — signed by state lodging associations, independent hoteliers, leading brands and owners from across the country — to President Obama and Congress. A copy of the letter is available on AH&LA’s website.