- Region:
- USA
- Category:
- Tourism
Government Shutdown Could Cost Travel Economy $1 Billion Per Week, Disrupting Peak Holiday Season
WASHINGTON - As Congress faces the impending threat of a government shutdown, the American travel economy stands to lose a staggering $1 billion per week. The disruption could impact millions of travelers, businesses, and federal employees during the critical holiday season, compounding the already significant challenges faced by the sector. Previous holiday shutdowns have cost the U.S. economy $11 billion, according to economic analyses.
Geoff Freeman, President and CEO of the U.S. Travel Association, warned about the consequences: “A prolonged government shutdown threatens holiday travel disruptions that Americans won’t tolerate. It’s hard to see how anyone in Congress wins if they force TSA workers, air traffic controllers, and other essential employees to work without pay during one of the busiest travel periods of the year.”
A survey conducted by Ipsos highlights the widespread concerns:
60% of Americans are likely to alter their travel plans, with many opting to cancel or avoid flights altogether.
81% agree that government shutdowns harm the economy.
86% acknowledge the inconveniences posed to air travelers.
83% believe shutdowns negatively affect businesses reliant on air travel and tourist destinations, including national parks, museums, and local businesses.
88% urge bipartisan collaboration to prevent shutdowns, while 69% would be less inclined to support members of Congress who vote in favor of such actions.
The stakes are further heightened by Congress’ failure to pass disaster relief funding, which could significantly delay recovery efforts in disaster-hit regions. “Research shows that delaying disaster relief funding until 2025 could push recovery efforts into 2026 or beyond,” Freeman added. “Americans that are suffering deserve better from their elected officials. It’s unconscionable that Congress would head home for the holidays while leaving communities devastated by disasters out in the cold.”
Recovery from major disasters typically spans 10 to 27 months, depending on the extent of damage. Without emergency funding, areas like North Carolina and Tennessee—still grappling with the aftermath of recent natural disasters—may face prolonged recovery timelines extending well into 2026 or longer.
Freeman emphasized the broader implications: “The urgency of passing a disaster relief bill is clear, not just for the economic health of impacted states, but for the livelihoods of millions of Americans dependent on travel-related businesses.”
As the clock ticks, the dual crises of a government shutdown and delayed disaster relief funding loom large, with profound implications for the travel economy and the nation at large. Congress must act decisively to avoid these outcomes and safeguard the recovery of affected communities and the broader economy.