The U.S. government’s record-long 43-day shutdown cost an
estimated $6.1 billion in total economic losses across travel and related
sectors, according to a Wednesday post on the U.S. Travel Association website
by its VP of research Joshua Friedlander.
U.S. Travel partnered with Tourism Economics to quantify the
event's effect on the travel industry. The shutdown lasted from Oct. 1 to Nov.
12, and on average, the U.S. saw 88,000 fewer trips per day than normal,
according to Friedlander.
"Government shutdowns are costly, disruptive and
unnecessary," Friedlander wrote. "They disproportionately harm a
sector that supports 15 million jobs and underpins America's economic growth.
Protecting the continuity of travel operations and ensuring essential workers
are paid gives due recognition to an industry that has proven to be
essential."
The U.S. Travel and Tourism Economics analysis noted that
most of the direct economic losses occurred during the shutdown period,
"though some trailing effects are also included," according to U.S.
Travel. The effects reviewed included curtailed government travel—the study
separated business travel by government employees and government contractors by
mode of transportation (air and non-air)—disruptions to air travel, travel
uncertainty, attraction closures, and confidence and income effects.
The estimates include direct trip-related losses of $2.7
billion, equivalent to a 1.7 percent reduction in total travel spending during
the shutdown, according to U.S. Travel. Flight delays added more than $183.3
million in shutdown losses.
Reduced government-related travel was the primary driver of
lost travel spending. The estimated loss of government-related air travel was
nearly $1 billion, while government-related non-air travel losses were
estimated to be nearly $1.3 billion.
Friedlander added that there is bipartisan support in
Congress to pay air traffic controllers, Transportation Security Administration
officers and Customs and Border Protection employees when government shutdowns
force them to remain on the job. Further, a December survey conducted by Ipsos
with U.S. Travel found that four out of five Americans support paying air
traffic controllers and TSA officers when forced to work during a shutdown.
U.S.
Travel president and CEO Geoff Freeman also spoke with BTN in December
about the estimated shutdown cost and need to pay those employees required to
work without a paycheck.