A federal government shutdown is estimated to cost the U.S. travel economy as much as $140 million a day, according to new analysis for the U.S. Travel Association—underscoring the dire consequences of Congress failing to pass a short-term extension by September 30.
“Each day that passes will cost the travel economy $140 million, an unacceptable prospect that Congress must avoid before the clock runs out and the damages mount,” said U.S. Travel Association President and CEO Geoff Freeman. “The federal government is already failing the traveler—a shutdown would be further proof of Washington’s inability to find reasonable solutions to problems that affect Americans nationwide.”
Other government-related travel issues—such as lengthy visitor visa interview wait times and passport and Global Entry processing delays—further constrain travel growth and spending, says U.S. Travel.
During a government shutdown, the U.S. air travel system is hampered by more flight delays, longer screening lines and setbacks in air travel modernization. A new survey from Ipsos and U.S. Travel further underscores these steep negative consequences: Six in 10 Americans (60 percent) would cancel or avoid trips by air in the event of a shutdown.
Further, the majority of Americans are not in favor of a government shutdown, especially from a travel perspective. More than eight in 10 of all Americans agree government shutdowns hurt the economy (81 percent), inconvenience air travelers (86 percent) and impact businesses that depend on air travelers (83 percent) as well as tourist attractions like national parks, museums and local businesses (83 percent). A shutdown, therefore, would hurt the bottom line for travel agencies just the same.
Coinciding with the federal budget deadline, the Federal Aviation Administration’s (FAA) authorization is set to expire on September 30. Congress has yet to pass a full FAA reauthorization bill, despite a version passing in the House of Representatives in June. Inaction on an FAA renewal bill, says U.S. Travel, would further compound challenges for travelers.
To that end, the U.S. Travel Association is calling on Congress to pass a short-term extension by September 30 and continues to call on the Senate to act quickly on a long-term FAA reauthorization bill. “This completely avoidable situation threatens livelihoods and jobs across the U.S. economy,” said Freeman. “Ultimately, travelers, businesses and workers will pay the price if lawmakers fail to enact a stop-gap funding bill.”
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