US Travel confirms $1bn industry loss in first week of federal shutdown

The US Travel Association (USTA) estimates the first week of the US government shutdown has cost the country’s travel industry $1 billion in lost spending.

 

The federal government shut down from October 1 after Republican and Democrat leaders failed to agree a federal budget, with up to 750,000 federal workers laid off.

 

Only ‘essential’ employees continue to work, doing so without pay, including air traffic controllers and Transportation Security Administration (TSA) staff.

 

More: US government shutdown threatens $1bn-a-week hit on travel

 

US government shutdown has impact on tourism [Jan 19]

 

USTA president and chief executive Geoff Freeman declared: “This shutdown is doing real, irreversible damage.”

 

Air traffic control and TSA workers have begun to call in sick, exacerbating the problems, as they increasingly did during the last shutdown in 2018-19 which lasted 35 days.

 

That shutdown only ended after absentee air traffic controllers grounded flights in New York and caused delays across US airspace.

 

The Foreign Office issued an updated US travel advisory today (Thursday) warning that there “could be travel disruptions, including flight delays and longer queue times at some airports, due to the current US federal government shutdown. 

 

“Check for messaging from your travel provider or airline and follow their guidance. 

 

“There may also be restrictions on access to some federally-managed tourist attractions. Please check the relevant websites in advance.”

 

US Airtours chief executive Guy Novik reported “no issues so far” for customers early this week, with the operator having received no calls from clients wishing to postpone trips.

 

But he said: “We’ve beefed up resources on our out-of-hours team because we’re anticipating getting calls. Longer queues at immigration could mean people missing flight connections.”

 

Novik noted there is “probably a lack of awareness of the implications” of the shutdown among customers.

 

However, he said the operator is not cautioning customers, arguing: “There is no point creating concern when the shutdown will have no impact on some travellers. We’d rather beef up our resources to support customers when something does happen.”

 

The US Department of Transportation (DoT) confirmed there had been a rise in air traffic controllers reporting in sick this week, with up to half of controllers absent in some control rooms.

 

Most federal attractions, including museums, have been closed along with national parks unless they have access to alternative funding.

 

The DoT said air traffic would be slowed as a result, with a knock-in effect on airline schedules.

 

Freeman said: “Travellers face longer TSA lines and flight delays. Airports are reducing flights and we’ve seen entire control towers go dark. 

 

“The longer this drags on, the worse the damage will be – for local communities, for small businesses and for the country. Congress needs to act now and reopen the government.”

 

Most federal attractions, including museums, have been closed along with national parks unless they have access to alternative funding.

 

Travel Weekly US reported some federal-funded attractions and national parks remain open due to donations. The Trump administration is funding the Statue of Liberty and Ellis Island in New York.

 

The Great Smoky Mountains National Park in Tennessee was able to resume operations at the weekend thanks to local funding.

 

Visitor centres at Utah’s five national parks also remained open this week, funded by the governor’s office, as did Colorado’s national parks at least until previously collected fees run out.

 

The Smithsonian museums also remained open for the first week of the shutdown while funds lasted.

 

The USTA warned ahead of the shutdown that a failure to set a budget would cost the travel industry up to $1 billion a week.

 

The association also issued a revised forecast of domestic and international tourism numbers and their spending last week, predicting “a significant decline” in international visitors to the US.

 

Advantage Travel Partnership chief executive Julia Lo Bue-Said urged UK travellers to “be mindful of the impact” of the shutdown and to check whether attractions are open.