According to the U.S. Travel Association, the federal shutdown is costing the U.S. travel economy $1 billion a week. TSA lines are long, and unpaid air traffic controllers are calling out sick.
Here in Hawaiʻi, it’s mostly business as usual, at least for now. HTA reports that state parks, beaches, and airports remain open, and even Pearl Harbor is operating with minimal disruption. Haleakalā and Hawaiʻi Volcanoes also remain open, though services are limited.
Beyond the shutdown, inbound international travel is projected to drop 6.3% in 2025, according to U.S. Travel’s revised forecast. Canadians, one of our steadier markets, are continuing to cancel trips over political tensions. Air travel from Canada to the U.S. fell a whopping 27% in September! A Longwoods International survey showed 63% of Canadians are less likely to visit the U.S. due to policy and politics. Hawaiʻi is currently tracking 9.4% down for Canadians, and add that to the Japanese who have not returned since the pandemic. HTA, we have a problem!
At The Lodging Conference in Phoenix earlier this month, economist Bernard Baumohl called this moment “one of the more bizarre” in U.S. economic history, citing inflation, uncertainty, and political chaos as a drag on long-haul leisure demand.
