How the Government Shutdown Affects Hotels and Travel

January 16, 2019

As reported by Asian Hospitality, the shutdown entered its 24th day, and for around 800,000 federal workers the first payday they will not receive a check, negotiations between President Trump and Democrats in Congress of the president’s insistence that Congress fund his border wall were no closer to a resolution, according to media reports. In a statement, AAHOA President and CEO Chip Rogers said the shutdown also closed national parks and forced essential personnel at agencies like the Transportation Safety Administration to work without pay.

“Travel expenses for employees at affected agencies cannot be paid during the shutdown which means less revenue for the hospitality sector. Many of our national parks and museums are closed, and hotels surrounding them will see dwindling occupancy rates which impact hoteliers, their employees, and their families,” Rogers said. “Visitors to our parks spend an average of $20 million per day in neighboring communities, but with the parks closed, that money stays home. Furloughed government workers will likely postpone or cancel leisure travel. Even travel itself will become increasingly frustrating as more unpaid TSA employees and air traffic controllers call in sick.”

According to Asian Hospitality, the shutdown could cost the U.S. economy more than $100 million a day in losses to the travel industry, according to the U.S. Travel Association. That includes about $50 million in direct reductions in domestic travel reductions as well as $50 million in indirect expenses, such as the closing of national parks.

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