BILLINGS — As the longest government shutdown in U.S. history continues, its effects are being felt in Billings, where tourism and travel are key drivers of the local economy.
Watch how tourism revenue in Billings is impacted during the government shutdown:
The U.S. Travel Association estimates that the nation has already lost more than $5 billion in travel spending since the shutdown began, or roughly $1 billion per week. Those national losses are hitting Montana’s largest city in many ways, from emptier restaurants to fewer hotel bookings.
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At Marble Coffee Company, which opened last year inside the DoubleTree Hotel in downtown Billings, owners Jen and Jason Marble said they have noticed a decline in the number of travelers stopping by.
“I think that people are coming out less because everything's getting tighter at home. It is for us,” said Jen. "I believe that we're here to help showcase what the DoubleTree has to offer as well. It's not just our business. We have local businesses that we support in here.”
The Marbles also own The Marble Table, a restaurant on Montana Avenue that’s become a local favorite since opening in 2020. Both businesses rely on a balance of local regulars and tourists traveling through, a balance that’s becoming harder to maintain as flight cancellations and delays keep visitors away.
The ripple effects of the shutdown extend well beyond delayed flights. With federal benefits such as SNAP payments delayed for the month of November, many families are cutting back on discretionary spending, meaning fewer meals out and fewer purchases from small businesses.
“I think a lot of local businesses here really need tourism. I think people give it kind of a bad name when not all the locals can support every single business in town,” said Jen. "I believe that if it wasn't for tourists, people wouldn't know about Billings as much."
According to Aly Eggart with Visit Billings, those visitors and their dollars make up a major portion of the city’s economy.
“In Billings, we see annually 2.6 million visitors spending an annual of $620 million in our economy, so it's an important piece of our economic story," said Eggart. “Those tourists and their dollars and that influx of dollars to our city really help what makes Billings be a vibrant and special city that we all love.”
Eggart said that tourism brings the state of Montana over $5 billion in spending and $414 million in tax revenue annually, along with supporting 66,000 jobs.
After rebounding from the COVID-19 pandemic, Billings saw a 10% increase in hotel supply and steady growth in leisure, business, and sports travel. Eggart said those gains have leveled off in recent months, particularly since the shutdown began.
"Of course, the longer this goes, there becomes a little bit of the looming concern that people will start canceling flights, canceling trips," said Eggart. “Right now, Billings is tracking up about two percent up in demand for hotel occupancy for 2025, and that's kind of the rolling 12 months. We are a little softer this fall."
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The impact is also being felt in the city’s conference and events sector. Eggart noted that recent events saw attendance drop because furloughed government workers could not travel to attend.
"Like the conference on outdoor recreation that was here in October, you had about half the attendees not be able to attend because they're furloughed government workers," said Eggart. "Your restaurants that would have normally been full because there was 300 attendees were a little less full because there was 150 attendees."
Despite the uncertainty, local business owners and tourism leaders say Billings still has room to grow, and they are encouraging residents to shop and dine locally as the holiday season approaches.
“Food cost going up, labor cost going up, rent's going up. Everything's going up," said Jason. “Local businesses are our friends and neighbors, whether we know them or not."
“Being able to bring people into our community is key. That's how we will all make it," added Jen. "I think that's how we grow. I think that's how we can pivot and do different things.”
