The ongoing shutdown in the United States is adversely affecting the lives of ordinary Americans as well as every industry. However, the hotel and restaurant industry is facing significant losses and hardship. This economic crisis has been ongoing for over a month, and there is still no solution in sight.

American Hotel and Lodging Association (AHLA) reported in a recent press release that more than 30 hospitality industry associations, including the American Hotel & Lodging Association, the Asian American Hotel Owners Association, the Latino Hotel Association, and the National Association of Black Hotel Owners, Operators, and Developers, sent a joint letter to the U.S. House of Representatives and Senate on Wednesday, urging leaders to end the shutdown.

Prolonged Shutdown

The shutdown, which began on October 1st, has been ongoing for over a month. It is impacting all industries, including the U.S. aviation industry. Air traffic control employees are unable to receive their salaries, forcing them to find alternative means of livelihood. All of this is directly impacting the tourism and transportation industries, which in turn is directly affecting the US hotel industry. AHLA, its members, and partner organizations appealed to congressional leaders to reopen the government as soon as possible and resume services impacting travel and tourism. Specifically, the letter warned that "a continued federal government shutdown will delay travel and undermine traveler confidence, which could lead to trip postponements and cancellations.”
What is the Hotel Industry Association's appeal?

"The government shutdown is having a devastating impact on the hotel, travel, and hospitality sector," AHLA President and CEO Rosanna Maietta said in a release. "Economic uncertainty and declining consumer confidence are leading to cancellations and difficulties in planning for the future, especially as we are in the midst of the holiday travel season."

The Hotel Industry Association acknowledged the uncertainty the shutdown has caused for the hotel industry. In their letter, they appealed, "This has prevented hotels from preparing for the holiday season, traditionally one of the busiest times of the year."

Shutdowns Make Things Worse

According to a Ticker estimate on the U.S. Travel Association website on October 9, the U.S. lost more than $1.2 billion in domestic travel spending in the first week of the shutdown. This economic impact has further exacerbated the hotel industry's hardship, as CoStar and Tourism Economics lowered their 2025 and 2026 growth projections for U.S. hotel top-line performance metrics in August. According to the AHLA, the shutdown has cost the hotel business approximately $650 million so far, and each day of the shutdown is costing the economy $31 million.
AAHOA Chairman Kamlesh Patel said in a release that every day of the shutdown is putting small businesses and jobs at risk.

"When a government shutdown occurs, uncertainty spreads throughout every community," Patel said. "Conferences are canceled, families postpone trips, and hotels lose valuable business."
According to AHLA, hotels generate more than $894 billion in GDP each year and contribute $85 billion in state, local, and federal taxes. This situation could also impact US GDP growth.