The American Hotel & Lodging Association (AHLA) has called on Los Angeles Mayor Karen Bass to veto a proposed tourism wage ordinance for hotel and airport workers, warning that its implementation could spark a major economic crisis in the city. The association argues that this new wage requirement threatens to worsen the financial difficulties already plaguing Los Angeles’ tourism industry, which is still struggling to recover from a series of setbacks, including devastating wildfires, a prolonged slump in international travel, and the lingering effects of the COVID-19 pandemic.

In a statement released today, the AHLA expressed serious concerns about the timing of the proposed ordinance, particularly given the fragile state of the local economy. The organization warned that imposing higher labor costs at this juncture could drive up operational expenses for hotels and airports, potentially leading to layoffs, reduced hours, or even business closures. Such consequences could further disrupt the already slow recovery process and deal a blow to a sector that has historically been one of the city’s economic cornerstones.

The AHLA emphasized that Los Angeles’ tourism industry is still struggling to rebound from the compounded crises of the past few years, with both domestic and international tourism numbers still far below pre-pandemic levels. The proposed wage hike, the association argues, could create additional hurdles for an industry already navigating multiple challenges.

The association’s appeal to Mayor Bass comes amid growing concerns within the local business community about the long-term impact of the ordinance. The AHLA stressed that while fair wages are a critical concern, this particular policy could inadvertently harm the workers it aims to support by placing additional strain on an already fragile industry.

As the city continues its recovery efforts, the AHLA’s plea underscores the delicate balance between ensuring fair wages for workers and protecting the economic stability of a sector still reeling from the impact of recent crises. The mayor’s decision on the ordinance could have lasting effects on the trajectory of Los Angeles’ tourism industry and the livelihoods of its hospitality workers.

“City officials themselves have described the current economic environment as one of ‘unprecedented uncertainty’ and ‘full of red flags’,” said AHLA President & CEO Rosanna Maietta in a letter to Mayor Bass. “We respectfully urge you to heed those internal warnings. We need the city to promote recovery and stabilize one of our city’s most vital economic engines.”

Tourism Industry Representatives Seek Dialogue on Wage Ordinance, but Face Silence from City Officials

Throughout the deliberation of the proposed wage ordinance, representatives from Los Angeles’ tourism sector made multiple attempts to engage with city council members and requested direct meetings with the mayor. Their aim was to work towards a balanced solution that would both support workers and help strengthen the struggling tourism industry. Unfortunately, these efforts were largely overlooked and went unanswered.

The tourism sector in Los Angeles is grappling with a series of significant challenges. International travel has dropped by 13.5%, with Canadian visitation plummeting more than 70%. In addition, over 320,000 airline seats have been removed from Los Angeles International Airport (LAX), creating further setbacks for the local economy. To compound the situation, 11 hotels in the city, representing over 3,000 rooms, are now under scrutiny from lenders and are listed on watchlists due to financial concerns.

“These are not hypothetical threats. They are current realities, and they are crippling the travel and hospitality economy,” said Maietta. “The proposal’s economic toll will extend beyond the hospitality sector, affecting restaurants, event venues, and small businesses that depend on a healthy tourism ecosystem.”

The Impact of the Ordinance: Job Losses, Hotel Closures, and Decreased Tax Revenue

Should this ordinance be enacted, the consequences will be far from hypothetical. The tourism industry will experience real and immediate fallout, including job cuts, hotel closures, and a significant reduction in tax revenue flowing into the city.

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