Hotel Industry Loses $650M Amid U.S. Government Shutdown, AHLA Urges Action

As the U.S. government shutdown enters its fourth week, the American Hotel & Lodging Association (AHLA) is calling on Congressional leaders to take immediate action to reopen the government, warning of mounting financial losses across the travel and tourism industry.

According to AHLA, the shutdown has already cost the hotel sector an estimated $650 million in lost business, with each additional day draining roughly $31 million in hotel-related economic activity. The organization said cancellations, reduced travel demand, and falling consumer confidence are compounding the industry’s struggles, particularly as the busy holiday season approaches.

“The government shutdown is having a devastating impact on the hotel, travel, and hospitality sectors,” said Rosanna Maietta, AHLA’s President and CEO. “Economic uncertainty and waning consumer confidence are translating into booking cancellations and discouraging future planning. We need our leaders in Washington to come together now and vote to reopen the government as soon as possible.”

More than 30 hotel and lodging associations across the U.S. have signed a joint letter urging Congress to end the shutdown. Chris Hardman, Chair of the International Society of Hotel Associations, emphasized that hotels are vital economic engines for communities nationwide, employing millions and supporting thousands of small businesses.

The shutdown was triggered by a political impasse over Affordable Care Act (ACA) subsidies, leaving 24 million Americans’ access to affordable healthcare in jeopardy. While the debate continues, the hotel industry warns that prolonged inaction will cause deeper economic damage to one of the nation’s key service sectors.

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