The halt in federal travel is leaving rooms empty, straining hotel revenues, jobs, and local economies
Nov 6, 2025
More than 30 hotel industry associations are calling on U.S. lawmakers to end the federal government shutdown, warning that continued delays are causing steep financial losses and uncertainty across the hospitality sector. Leaders say hotels, workers, and tourism-dependent communities are facing mounting strain as travel slows and bookings are canceled.
Key takeaways
- Significant financial impact: The shutdown is costing the economy an estimated $31 million per day in lost hotel-related activity, with total industry losses reaching $650 million so far.
- Widespread uncertainty and cancellations: Declining traveler confidence is leading to canceled bookings and reduced planning for future travel, particularly ahead of the holiday season.
- Small hotels at heightened risk: Many associations note that small, independent hotel owners face severe financial pressure, as they depend on steady bookings and cannot absorb prolonged revenue loss.
- Industry organizations united: More than 30 hotel associations across the U.S. have jointly called on Congress to restore government operations as soon as possible.
- Critical role in the economy: The hotel industry supports 2.1 million direct jobs and nearly nine million total jobs nationwide, contributing $894 billion to GDP and $85 billion in annual tax revenue.
- Ripple effects across communities: Reduced hotel business impacts local restaurants, transportation, event venues, and tourism operators, deepening the economic strain on Main Street and regional economies.
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