Federal Government Shutdown Could Further Strain Las Vegas Tourism

Congress is still working in the Capitol to prevent Wednesday's 12:01 a.m. EST federal government shutdown.

To keep the nation functioning, Congress must approve a financing bill before October 1, the beginning of the federal government's fiscal year.  Political deadlock in Washington, DC, has resulted in numerous short-term continuing resolutions (CRs) to temporarily keep the government operating and financed, as has been the case in a number of recent years.  About 800K federal employees were impacted by the 35-day federal government shutdown in 2018.

To keep the federal government running smoothly, Congress has just a few hours left to deliver a spending bill or CR to President Donald Trump's desk.  If it doesn't, there may be a shutdown, which might affect tourism.

Despite being regarded as vital workers, TSA agents and air traffic controllers remain unpaid during a shutdown.  Essential staff will be compensated for their time once the government is fully financed and operational again.

How Travel Could Be Affected by Shutdown

A brief shutdown of the federal government wouldn't have a significant effect on Las Vegas and tourism.  However, tourism may suffer if a longer shutdown continues, which is a genuine possibility given the sharp disagreements between Republicans and Democrats over important budget items.

Geoff Freeman, the CEO and president of the US Travel Association, says so.  From 2013 until 2018, Freeman served as president and chief executive officer of the American Gaming Association (AGA), a trade association that advocates for the interests of Washington's commercial and tribal casino sectors.  During his tenure, the federal sports betting ban was overturned by the US Supreme Court.

"The longer a shutdown drags on, the more likely we are to see longer TSA lines, flight delays, and cancellations,” Freeman said. “Nearly nine in 10 Americans agree Congress should work together to prevent a shutdown. Americans deserve better — lawmakers must act before October 1 to keep our government funded and protect jobs, travelers, and our economy.”

The longer a shutdown lasts, the more likely it is that some government employees won't show up for work because they fear their time won't be paid, according to the tourism expert.  However, a 2019 statute requires Congress to reimburse federal employees for all hours worked during a government shutdown.

According to the US Travel Association, a government shutdown would cost the domestic travel economy $1 billion every week, impacting both businesses and millions of travelers.

Vegas  Reeling

There is already a decline in tourism in southern Nevada.  Compared to 2024, Las Vegas's visitor volume decreased by over 8% through August.  Through August, Harry Reid International, the main airport in Las Vegas, has seen a 4.5% decrease in air traveler volume, or more than 1.76 million passengers.

Sixty percent of Americans responded that in the case of a government shutdown, they would either avoid or cancel flying travel, according to Tourism Economics.  Eighty-six percent (86%) agreed that federal government shutdowns cause problems for air travelers, and more than eight out of ten (81%) think they harm the economy.