The government shutdown in the United States has cost the hotel industry $650 million

US hotels are losing $31 million a day due to government shutdown

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.

• Over the past 50 years, there’s been several US government shutdowns. Most lasted a matter of days, although the longest shutdown (35 days) was recorded from December 2018 under President Trump’s first term. Fast forward to the present day and the US government is in its fourth week of another shutdown after Congress failed to pass a funding bill. This means that many, but not all, government services are suspended. 

At the time of writing, the US Travel Association has estimated that $4 billion in travel spending has been lost since the government shutdown on 1 October. Airports have reduced flights, and of those still in operation, the lack of air traffic controllers has led to huge delays. Consumer confidence has once again been knocked, translating into cancellations and discouraging future planning at a time when the industry typically gears up for the holiday season. 


In a recent letter to the House of Representatives and Senate, more than 30 hotel trade associations have urged Congress to reach a “speedy agreement”. The American Hotel & Lodging Association estimates that the damage so far has cost the hotel industry $650 million in lost business - around $31 million per day. It leaves millions of staff members facing uncertainty as the industry falls under severe financial strain. 


Beyond the immediate financial losses, restoring confidence will take far longer than passing a funding bill. It’s critical that policymakers put partisanship aside and prioritise the livelihoods of those which depend on government stability.