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AH&LA Warns on Sequestration

Monday March 4th, 2013 - 8:27AM

WASHINGTON–With Congress missing the sequestration deadline late last week, the American Hotel & Lodging Association has issued a dire warning to lawmakers in Washington.

Congress' failure to act means that over the next nine years, a total of $1.2 trillion in cuts will take place with $85 billion  in automatic spending cuts occurring by the end of this fiscal year. The AH&LA has warned that, while the lodging industry has led the economic recovery with 12 straight quarters of growth, indiscriminate cuts to federal programs threaten to derail this progress.

Government travel, for example, will likely be the first item cut as federal agencies seek to reduce budgets. Hotels and resorts can expect to see meetings postponed, travel bookings shortened and government planners delaying contract signings as they await a Congressional solution.