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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