Bad News for Las Vegas as US Government Shutdown to Cost Travel Sector $1bn Weekly

  • Congress couldn’t agree on the 2026 fiscal year funding legislation
  • Many federal workers are furloughed or not getting paid as a result
  • A knock-on effect will be delays and cancelations to flights
Flight delayed
The ongoing US government shutdown is set to cause airport chaos and cost the country’s travel sector about $1bn every week. [Image: Shutterstock.com]

Experts are warning that the ongoing US government shutdown could cost the country’s travel sector $1bn every week until there’s a resolution. That’s bad news for Las Vegas where visitor numbers are already down significantly in 2025.

The shutdown started on October 1 as Congress couldn’t agree on the funding legislation for the 2026 fiscal year. Hundreds of thousands of federal workers across the country are furloughed with no clear end date in sight.

60% of Americans would avoid air travel or cancel their trips due to a government shutdown

A recent Ipsos survey shows that 60% of Americans would avoid air travel or cancel their trips due to a government shutdown. Knock-on effects of the shutdown include delays and cancelations of flights, as federal air traffic controllers and TSA agents who are currently not being paid might not turn up for work.

Essential federal workers are still mandated to work during government shutdowns, although some could call in sick. About one-third of Nevada’s GDP comes from tourism, so the disruption will particularly impact the state.

Visitor numbers to Las Vegas were already down 7.3% for the first six months of 2025, which has sparked casinos offering knockdown rates to try to attract more people to the region. The longer the shutdown continues, the more likely people will stick to using online casinos rather than traveling to gamble at land-based casinos.

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