A looming U.S. government shutdown could have a significant financial impact on America’s travel economy — to the tune of $1 billion a week, according to the U.S. Travel Association.
The U.S. government is at risk of shutting down, with federal agencies slated to run out of money Oct. 1 if Democrats and Republicans in Congress don’t agree upon, and pass, a spending bill for the next fiscal year, The Wall Street Journal reported Thursday.
A shutdown would threaten the operations of federal agencies including the Transportation Security Administration, dealing a blow to America’s travel economy, U.S. Travel Association President and CEO Geoff Freeman detailed in a Sept. 25 letter to congressional leadership.
A “wholly preventable” government shutdown would cost the U.S. travel economy $1 billion every week, “affecting millions of travelers and businesses while placing unnecessary strain on an already overextended federal travel workforce,” according to Freeman.
“A shutdown exacerbates staffing shortages among Transportation Security Administration officers and air traffic controllers, threatening longer airport security lines, flight delays, and cancellations,” Freeman wrote.
The White House threatened mass firings across federal agencies if a shutdown occurs — a break from how government shutdowns have been handled in recent decades, Politico reported Wednesday. However, air traffic control programs are among those slated to continue in the event of shutdown, per Politico.
A shutdown would also rock consumer confidence and lead to travel declines, the U.S. Travel Association detailed in a Thursday release. Some 60% of Americans would cancel or avoid trips by air in the event of a shutdown, Freeman said, citing an Ipsos survey. This decline would vex an already struggling U.S. travel sector.
The World Travel & Tourism Council reported in May that the U.S. was on track to lose $12.5 billion in international visitor spending this year as consumer confidence dipped in the wake of government actions.
Meanwhile, diluted travel demand and broader economic uncertainty led hotel companies to report widespread U.S. RevPAR declines in the second quarter of this year. Last month, CoStar and Tourism Economics again downgraded their U.S. hotel growth forecast for 2025, noting changing travel patterns.
In the letter, Freeman said the harms of a government shutdown “ripple far beyond airports and parks, threatening jobs, small businesses, and economic growth in every state.” He urged Congress to “act swiftly to keep the federal government open.”
