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Los Angeles Tourism Wage Ordinance Could Unleash Economic Tsunami, Warns AHLA – Image Credit AHLA
- The American Hotel & Lodging Association (AHLA) has urged Mayor Karen Bass to veto the proposed tourism wage ordinance for hotel and airport workers.
- The AHLA warns that this ordinance could trigger an economic tsunami, further impacting Los Angeles’s already struggling tourism sector.
The American Hotel & Lodging Association (AHLA) has asked Mayor Karen Bass to veto the proposed $30 wage ordinance for hotel and airport workers. The AHLA warned that enacting this ordinance could spur an economic tsunami, especially as Los Angeles’ tourism industry is already grappling with devastating wildfires, a prolonged international travel slowdown, and a slow recovery from the pandemic.
According to the AHLA, city officials have acknowledged the prevailing economic environment as full of uncertainties and potential risks. Under such circumstances, the AHLA argues that it is crucial for the city to focus on promoting recovery and stabilizing one of its most vital economic sectors.
During the ordinance’s consideration, tourism industry representatives reportedly met with city council members multiple times to negotiate a compromise that would benefit workers and strengthen the tourism industry. However, these requests were largely unheeded.
The tourism industry in Los Angeles is facing significant challenges. International travel has fallen by 13.5%, and Canadian visitation has dropped by more than 70%. Airlines have withdrawn over 320,000 seats from Los Angeles International Airport (LAX). Furthermore, 11 Los Angeles hotels, consisting of over 3,000 rooms, are now on lender watchlists.
The AHLA contends that these realities are debilitating the travel and hospitality economy. The proposed ordinance’s economic impact could extend beyond the hospitality sector, affecting restaurants, event venues, and small businesses that rely on a thriving tourism ecosystem.
Should this ordinance become law, its consequences would be tangible and far-reaching, leading to job losses, hotel closures, and a decline in the city’s tax revenue.
