Industry Leaders Urge Congress to End Government Shutdown

The numbers at the top of the U.S. Travel Association web site tell the story: More than $4.3 billion and counting in travel spending has been lost since the U.S. government shutdown on October 1. 

“The shutdown is unnecessary, disruptive, and as mentioned by Secretary [Sean] Duffy can be dangerous, as we are now in an area of disruption with the major airports,” said industry leader Mike Dominguez, president & CEO, Associated Luxury Hotels International and a member of the executive committee of Meetings Mean Business, a U.S. Travel-affiliated coalition. In September, U.S. Travel sent a letter to Congressional leadership underscoring the detrimental impact a government shutdown would have.

The trade show industry has been impacted by the pause of two government programs — the Department of Commerce’s Trade Event Partnership Program and the Trade Event Menu of Services Program, said Tommy Goodwin, vice president of the Exhibitions & Conferences Alliance (ECA). (The former assists organizers of major U.S. trade shows with overseas promotions and provides export assistance to American exhibitors, while the latter provides these and other services for a fee and is typically ​​used by smaller or emerging events.)

According to Tourism Economics, regions with significant federal operations, national parks, and other impacted attractions are most at risk. The Washington, D.C. metro area, which was already experiencing weak government-related business travel, is now facing additional uncertainty with the temporary closures of attractions such as the Smithsonian museums and the National Zoo. Hawaii, New Mexico, Maryland, and Virginia also have sizable federal operations.

Boston is another example of the impact at the local level, said Martha Sheridan, president and CEO of Meet Boston and chair of the Meetings Mean Business Coalition. Important sites and attractions such as the JFK Library and some Freedom Trail landmarks are shuttered, and federal employees are unable to attend meetings and conventions in the city, a hub for the pharmaceutical and biotech industries.

Travel Industry Speaks Up

The CEO of the business travel industry’s major association, the Global Business Travel Association (GBTA), Suzanne Neufang, said the government shutdown threatens to stall the growth of that industry, which is expected to reach $395.4 billion this year. “We urge Congress to act swiftly and responsibly to pass a budget to re-open the U.S. government and keep our economy moving. Productive and essential business travel is threatened in times of economic uncertainty or in an environment of additional barriers and restrictions.”

On the hotel industry side of the business, more than 30 associations banded together to send a joint letter to the leadership of the U.S. House of Representatives and Senate, urging an end to the government shutdown. 

The letter estimated that each day of the shutdown costs the economy $31 million in activity that would have been generated by hotel stays. Participants spanned the entire industry, from the American Hotel and Lodging Association (AHLA), to dozens of state hospitality and restaurant associations, to the Puerto Rico Hotel & Tourism Association.

ECA’s Goodwin does not anticipate a quick fix. “While political dynamics inside the Beltway remain fluid, at this time it appears unlikely the shutdown will end until the second or third week of November.”

“What else can we do?” Dominguez said. “Only continue to pressure our elected officials to open the government and start doing the work of the people.”