Industry Associations Say Government Shutdown Has Cost Hotels $650 Million

Organizations send letter to representatives ‘imploring’ them to reopen

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October 27, 2025

The government shutdown has cost the hotel industry $650 million in business, according to a letter sent by more than 30 industry associations representing hotels across the country to the U.S. House of Representatives and Senate urging them to end the stoppage. The American Hotel & Lodging Association (AHLA), its members and allied organizations said they are ‘imploring’ Congressional leaders to reopen the government and restore services that impact travel and tourism.

The consequences of the shutdown, said the letter, are far-reaching across the tourism and hospitality sectors broadly. According to an economic analysis, said the letter, each day of the shutdown costs the economy $31 million in activity that would have been generated by hotel stays.

Rosanna Maietta, CEO of the AHLA, said, “The government shutdown is having a devastating impact on the hotel, travel and hospitality sectors.” Economic uncertainty and waning consumer confidence, she said, “are translating into booking cancellations and discouraging future planning especially as we head into the heart of the holiday travel season.”

“These essential industries,” said Maietta, “fuel our economy, and we need our leaders in Washington to come together now and vote to reopen the government as soon as possible.”

Chris Hardman, chair of the International Society of Hotel Associations and incoming CEO of the Georgia Hotel & Lodging Association, added, “The hotel industry powers millions of jobs and strengthens communities on every Main Street across America.” More than 30 hotel associations, representing thousands of small businesses nationwide, he said, “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.”

The hotel and lodging industry, according to AHLA, supports 2.1 million direct jobs — one out of every 25 in the US economy — and nearly 9 million total jobs nationwide. Hotels generate more than $894 billion in GDP annually and contribute $85 billion in state, local and federal taxes combined.