With the United States now entering the fourth week of a government shutdown, the American Hotel & Lodging Association (AHLA), is “imploring” Congressional leaders to reopen the government and restore services that impact travel and tourism.
The statement comes as the hotel industry suffers a significant blow from Washington’s lack of action: An estimated $650 million has been lost in hotel business while government officials struggle to come together, find a compromise, and reopen.
More than 30 industry associations representing hotels across the country today sent a letter to the leaders of the U.S. House of Representatives and Senate urging them to end the government shutdown, according to a statement released by AHLA.
“The consequences of the shutdown are far-reaching across the tourism and hospitality sectors broadly,” said the AHLA statement.
Citing an economic analysis (though the source of the analysis was not included in the press release), AHLA said that each day of the government shutdown costs the economy $31 million in activity that would’ve been generated by hotel stays.
“The government shutdown is having a devastating impact on the hotel, travel, and hospitality sectors. Economic uncertainty and waning consumer confidence are translating into booking cancelations and discouraging future planning especially as we head into the heart of the holiday travel season,” Rosanna Maietta, president and CEO of the American Hotel & Lodging Association, said in a statement.
“These essential industries fuel our economy and we need our leaders in Washington to come together now and vote to reopen the government as soon as possible,” Maietta added.
The shutdown was triggered by a disagreement among lawmakers about extending subsidies for the Affordable Care Act (ACA) marketplaces. About 24 million people, who otherwise would not have access to healthcare through employment or Medicaid, rely on the ACA to access health plans. They could lose access to affordable healthcare if an agreement is not reached.
The beginning of open enrollment for people who access healthcare through ACA is scheduled to start in November. At that point, many states will notify subscribers of the cost to access coverage through the marketplace without the needed subsidies.
While that debate remains unsolved, the hotel industry continues to lose millions of dollars.
“The hotel industry powers millions of jobs and strengthens communities on every Main Street across America,” Chris Hardman, chair of the International Society of Hotel Associations and incoming CEO of the Georgia Hotel & Lodging Association, said. “More than 30 hotel associations, representing thousands of small businesses nationwide, stand united in urging Congress to act now — so hotels can return to what they do best: welcoming guests from around the world at America’s front door.”
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