Lodging Industry Suffering Weekly Losses of $57.6 million Due to Government Inaction
October 11, 2013 7:36am
Washington, D.C. - October 10, 2013 - Faced with an ever-increasing economic hit to the domestic travel and tourism industry resulting from the ongoing government shutdown and the looming breach of the federal debt ceiling, the American Hotel & Lodging Association (AH&LA) and hoteliers from across the country sent a letter to President Barack Obama and all 535 members of the United States Congress pressing for a swift, bipartisan resolution.
"For every day that passes that President Obama and Congress are not at the negotiating table seeking an end to this crisis, the American economy - and the lodging industry - continue to suffer," said Katherine Lugar, AH&LA president/CEO. "Hoteliers are a major economic driver and job creator across the country, and the industry's ability to continue its growth is hamstrung by inaction from our policymakers. The administration, House of Representatives, and Senate need to act swiftly in the best interests of the entire nation and end this shutdown."
Mark Zandi, chief economist for Moody's Analytics, has noted that the economy will take a $50 billion hit if the shutdown extends to one month. Already, hotels across the United States are losing more than $57.6 million in economic activity for each week the shutdown continues. This, along with the $200 million per day in collective American income that is being lost, puts jobs at risk and has a ripple effect through other lodging-related sectors. Communities near national parks are being hit especially hard and are seeing the loss of $76 million per day in visitor spending and the cancelation of thousands of trips and hotel reservations.
The letter notes, "Current fiscal conditions are leading to increased consumer uncertainty, all to the detriment of economic growth. In short, the government shutdown is increasingly impairing the lodging industry's ability to hire, grow, and contribute to the economy."
The letter continues, "Acting to put the debt on a downward path into the future and addressing our long-term fiscal challenges are imperative to stronger consumer confidence, future job growth, and our nation's standing throughout the world."
Signatories to the letter include state lodging associations, independent hoteliers, leading brands, and owners from across the country.
Contact: Matt Rhodes
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