Federal Government Shutdown Could Cost US Travel Industry $140 Million Daily

Image: U.S. Capitol Building. (photo courtesy of trekandshoot/iStock/Getty Images Plus)
Image: U.S. Capitol Building. (photo courtesy of trekandshoot/iStock/Getty Images Plus)
Donald Wood
by Donald Wood
Last updated: 10:20 AM ET, Thu September 21, 2023

New data revealed that a potential federal government shutdown would likely cost the travel industry in the United States as much as $140 million a day.

The U.S. Travel Association found in addition to losing almost $150 million daily, Congress failing to pass a short-term extension by September 30, America’s air travel system would experience more flight delays, longer screening lines and setbacks in air travel modernization.

A new survey found that 60 percent of U.S. travelers would cancel or avoid trips by air in the event of a shutdown. Another 81 percent of respondents said a government shutdown would hurt the economy and 83 percent said it would impact businesses that depend on air travelers, as well as tourist attractions like national parks and museums.

“Each day that passes will cost the travel economy $140 million, an unacceptable prospect that Congress must avoid before the clock runs out and the damages mount,” U.S. Travel Association President and CEO Geoff Freeman said. 

“The federal government is already failing the traveler—a shutdown would be further proof of Washington’s inability to find reasonable solutions to problems that affect Americans nationwide,” Freeman continued. 

In addition to working on lengthy visitor visa interview wait times and passport and Global Entry processing delays, Congress must pass a long-term Federal Aviation Administration (FAA) reauthorization bill, with the current authorization set to expire on September 30.

Inaction on the new FAA bill would further compound travel challenges for Americans.

“This completely avoidable situation threatens livelihoods and jobs across the U.S. economy,” Freeman said. “Ultimately, travelers, businesses and workers will pay the price if lawmakers fail to enact a stop-gap funding bill.”


For the latest travel news, updates and deals, subscribe to the daily TravelPulse newsletter.

Topics From This Article to Explore

More From TravelPulse

Related Videos

Donald Wood

Donald Wood

Managing Editor

Donald Wood is TravelPulse’s Managing Editor, bringing nearly 15 years of experience to the desk. He currently lives outside Philadelphia with his wife and two children.

Grow Your Travel Business With Certified Courses

Travel Agent Academy
Travel Agent Academy
Allianz Specialist ProgramProtect every journey with Allianz Partners Travel Insurance.
Travel Agent Academy
Travel Agent Academy
Majestic Resorts Specialist ProgramDiscover all-inclusive luxury at Majestic Resorts in paradise.
Travel Agent Academy
Travel Agent Academy
Los Cabos Specialist ProgramSell the magic of Los Cabos: luxury, adventure, and endless sunshine.
Travel Agent Academy
Travel Agent Academy
Allianz Specialist ProgramProtect every journey with Allianz Partners Travel Insurance.
Travel Agent Academy
Travel Agent Academy
Majestic Resorts Specialist ProgramDiscover all-inclusive luxury at Majestic Resorts in paradise.
Travel Agent Academy
Travel Agent Academy
Los Cabos Specialist ProgramSell the magic of Los Cabos: luxury, adventure, and endless sunshine.

Don't Miss These Travel Agent Events and Trainings

Upcoming Webinar
Let's Sell Luxury TogetherMonday, September 14, 2026
2:00pm Eastern
Luxury travel continues to evolve, creating exciting new opportunities for advisors to elevate their...
Upcoming Webinar
Greenland Uncovered: Selling the Arctic's Best-Kept Secret with HXTuesday, September 15, 2026
2:00pm Eastern
Towering icebergs, colourful Inuit communities, the Midnight Sun, and a UNESCO-listed icefjord —...
Upcoming Webinar
The Next Generation Of Carnival FunWednesday, September 16, 2026
2:00pm Eastern
Get ready for an exciting webinar with Janet Wygert, Carnival’s Senior Vice President of Sales and...
Upcoming Webinar
Let's Sell Luxury TogetherMonday, September 14, 2026
2:00pm Eastern
Luxury travel continues to evolve, creating exciting new opportunities for advisors to elevate their...
Upcoming Webinar
Greenland Uncovered: Selling the Arctic's Best-Kept Secret with HXTuesday, September 15, 2026
2:00pm Eastern
Towering icebergs, colourful Inuit communities, the Midnight Sun, and a UNESCO-listed icefjord —...
Upcoming Webinar
The Next Generation Of Carnival FunWednesday, September 16, 2026
2:00pm Eastern
Get ready for an exciting webinar with Janet Wygert, Carnival’s Senior Vice President of Sales and...