Summary:
- The federal shutdown cost $6.1B, including $2.7B from 88,000 fewer daily trips.
- Overall U.S. travel spending fell 1.7 percent during the period.
- Hotel losses totaled $1.18B by early November.
THE U.S. GOVERNMENT shutdown cost an estimated $6.1 billion in economic losses across travel and related sectors, according to the U.S. Travel Association. The U.S. saw an average of 88,000 fewer trips per day and $2.7 billion in trip-related losses.
Daily losses from the longest shutdown in U.S. history, which lasted 43 days, averaged $61.5 million in direct travel spending and $136.8 million including indirect effects, Joshua Friedlander, USTA vice president of research, wrote in a blog post. Overall U.S. travel spending declined 1.7 percent during the period.
Hotel losses reached $1.18 billion by early November, air travel fell 1.3 percent and national park visits dropped 5 percent, he said. In September, the association warned the shutdown could cost the travel economy up to $1 billion per week.
Aviation workers, including air traffic controllers and TSA staff, were required to work without pay. Staffing shortages caused flight disruptions at 40 major U.S. airports. The closure of parks, museums, and other federal sites reduced travel and demand for hotels, airlines and local businesses. Bipartisan support emerged to address the issue.
An Ipsos survey for USTA found 80 percent of Americans support paying aviation workers during shutdowns. Congress has passed legislation ensuring air traffic controllers receive pay in future shutdowns.
Federal shutdowns, Friedlander wrote, go beyond political impasses and cause measurable damage to the travel system by reducing both service supply and Americans’ willingness to travel.
The travel industry supports about 15 million U.S. jobs, and shutdowns disrupt economic growth. Friedlander said maintaining travel operations and paying essential workers is critical for the industry’s role in the economy.
