Hotels feel the pain of federal budget cuts

The automatic federal budget cuts brought about the by so-called sequestration are already inflicting some pain on the hotel industry.

Federal agencies responded to the cuts by slashing nonessential travel by federal employees, which represent at least 30% of business for some hotels.

This month, the 67th annual National Defense Transportation Assn. Forum & Expo -- which was to be held in September in San Antonio -- was called off because of the budget cuts. The association is a nonprofit, educational group focusing on transportation issues for the military.

Travel officials worry that further federal cuts will continue to hurt a travel industry that supports about 14 million workers.

“We are seeing evidence of cancellations of federal agency travel all across the board,” said Erik Hansen, director of domestic policy for the U.S. Travel Assn., the trade group for the nation’s travel industry.

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