Phoenix Hotels Really Hurt By Government Shutdowns

The economic impacts of the government shutdown are just starting to be felt.

Travel is almost non-existent. Airplanes are practically flying empty. Tourism has been hammered by government decisions to shut down large parts of the economy.

Here in the Valley, occupancy at hotels is down 57% year over year. Currently, they are 30% occupied.

It's unlikely travel will return to pre-COVID19 levels any time soon. A poll out last month suggests two-thirds will not travel for at least three months after the coronavirus is contained (whatever that means).

This means less flights, less hotel stays, and less money being spent in tourist destinations. Less money means less employment. Less employment is the trickle down impact of these government shutdown decisions.

As hotel occupancy rates may hover around 30%, hours will be down and some employees may be laid off. They, those employees won't spend as much money on goods. Retails sales were down 16% in April. That sector has seen hour reductions and lay offs as well. That also means less money. It's the ripple effect.

And we are just starting to feel it.


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