A Partial Government Shutdown Could Cost the U.S. Travel Industry $1 Billion per Week, Warn Travel Companies
A partial government shutdown could cost the United States travel industry $1 billion per week and cause widespread disruptions for travelers, a trade group representing airlines, hotels, and other travel companies said on Friday.
The U.S. Travel Association CEO, Geoff Freeman, warned that a prolonged government shutdown threatens to disrupt holiday travel, citing the potential impact on aviation security and air traffic management. Freeman emphasized that prolonged wait times at airports during peak travel periods would “not be tolerated” by the American public.
Over the holidays, the Transportation Security Administration (TSA) expects to screen a record 40 million passengers, with most of its 62,000 employees expected to work without pay if a shutdown occurs.
Air traffic controllers and TSA officers, among other federal workers, would be forced to work without pay under a shutdown, according to FAA estimates. In 2019, a 35-day shutdown resulted in widespread absences among controllers and TSA officers, leading to longer wait times at security checkpoints and ultimately forcing the FAA to slow air traffic in New York.
To avoid a shutdown, some lawmakers are seeking a long-term funding bill, citing concerns about the impact of a shutdown on the broader economy. “It’s hard to see how anyone in Congress wins if they force TSA workers, air traffic controllers, and other essential employees to work without pay during one of the busiest travel periods of the year,” Freeman said in a statement.
A group of aviation industry leaders last week warned Congress that an extended shutdown would have disastrous consequences for the Federal Aviation Administration (FAA). Fitch Ratings also recently cautioned that a shutdown “could cause non-material operational disruptions at airports with non-essential FAA and TSA worker furloughs.”
The potential impact on travelers is not limited to wait times. A travel industry survey found that 60% of Americans are considering altering their travel plans if a government shutdown occurs, with many opting to cancel or avoid flights altogether.