Government Shutdown Costs US Hotel Industry $650M, AHLA Urges End

The ongoing government shutdown, now entering its fourth week, has severely impacted the U.S. hotel and hospitality industry, leading to an estimated loss of $650 million in hotel business and costing the economy approximately $31 million daily in hotel-related activity. More than 30 industry associations, including the American Hotel & Lodging Association (AHLA) and the Asian American Hotel Owners Association (AAHOA), have jointly urged Congress to reopen the government and restore travel and tourism services, emphasizing the shutdown's detrimental effects on consumer confidence, booking cancellations, and future travel planning. The shutdown has also interrupted access to key economic data, complicating the Federal Reserve's decision-making amid inflation and labor market concerns. Industry leaders highlight that the shutdown threatens millions of jobs and small businesses across communities nationwide, especially during the critical holiday travel season. They stress that the hotel, travel, and hospitality sectors are vital to the U.S. economy and call on lawmakers to quickly resolve the impasse to restore stability and growth. The shutdown was triggered by disputes over government budget and healthcare subsidies, further complicating the broader economic repercussions.