LA Tourism Industry Calls on City Council to Reject Labor Ordinance and Support Industry’s Recovery at City Hall Press Conference

Thousands of hotel jobs and millions of dollars in state and local tax revenue on the line

Today, Los Angeles Councilmembers John Lee and Traci Park joined dozens of hotel and hospitality professionals, local business leaders, and the American Hotel & Lodging Association (AHLA) on the steps of Los Angeles City Hall to call on the City Council to reject an ordinance that will jeopardize jobs, lead to hotel closures, and decrease tax revenue into the city.

As the city continues to recover from the long-term effects of the pandemic and the recent wildfires, Los Angeles currently faces a $1 billion budget shortfall. Additionally, according to AHLA’s new report, the return of international visitors lags behind all other major U.S. cities, further causing industry-wide concern.

The tourism industry is one of the top five employers in Los Angeles County, supporting more than 540,000 Angelenos. If this ordinance is enacted, the report shows that some 15,000 hotel employees could be laid off. Two hotels have shut their doors already because they simply cannot afford to stay open. Many more would follow.

Today, speakers addressed the City Council’s plans to implement a drastic wage ordinance that will place additional hardships on industries that are crucial economic drivers ahead of major international events in the coming years. Please find a link to the video of the full press conference here. 

AHLA President & CEO Rosanna Maietta and other key travel leaders urged sensible legislation that reflects today’s economic realities:

“The hotel industry embodies the American Dream for thousands of hotel workers and the small business owners of nearly 500 hotels in Los Angeles. Yet, the city council is proposing an ordinance that will destroy the tourism industry and thousands of jobs it sustains,” said Maietta. “We urge city leaders to shelve this damaging proposal that will jeopardize jobs, devastate much-needed tourism-related tax revenue, and lead to the closure of hotels that make our communities thrive.”

“Now is not the time to enact policies that will further jeopardize jobs and revenue in one of our city’s most vital industries,” said Councilmember John Lee. “We must work collaboratively with hotel owners, workers, and business leaders to ensure a balanced path forward—one that protects livelihoods, strengthens our economy, and keeps Los Angeles open for business as we prepare to host the world in the years ahead.”

Councilmember Traci Park said, “Now is not the time to gamble with the future of one of Los Angeles’ most critical industries. Tourism supports thousands of workers, small businesses, and the very city services we all rely on. With a $1 billion budget deficit and an already fragile economy, we should be investing in our tourism infrastructure, not driving businesses away. We need to protect jobs, protect services, and protect the future of Los Angeles.”

“AAHOA stands with hotel owners and community partners who are doing everything they can to stay afloat, protect jobs, and serve their communities,” said Laura Lee Blake, President & CEO of the Asian American Hotel Owners Association. “Now is not the time to impose additional burdens on small businesses that are still recovering from the impacts of the wildfires and other recent events. We urge city leaders to work with our industry—not against it—to find sustainable solutions that protect jobs, support working families, and keep hospitality thriving in Los Angeles.”

“With the city facing a $1 billion dollar deficit and layoffs, we must do everything possible to protect revenue into the city’s coffers. Through business, sales, and transient occupancy taxes, the tourism industry contributes hundreds of millions of dollars each year to the city of Los Angeles,” said Hotel Association of Los Angeles President & CEO Jackie Filla. “Now is not the time to pursue policies that will dramatically raise costs for our vulnerable industry as it recovers from the economic impacts of COVID and devastating fires, as well as navigate challenges from national rhetoric and tariffs. We look forward to continuing our work with the Mayor and City Council to boost this industry and the more than 540,000 jobs it provides to Angelenos.”

“Los Angeles is on the brink of hosting some of the biggest global events in history — but if this ordinance moves forward, we risk being unprepared and economically unstable. The tourism and hospitality sectors are the backbone of LA’s economy, supporting hundreds of thousands of workers and generating billions in local spending and tax revenue,” said Los Angeles County Business Federation President David Englin. “As the voice of more than 240 business organizations representing 420,000 employers across the region, BizFed urges city leaders to hit pause and work toward a solution that protects both jobs and city revenues.”

“There must be a balanced approach that considers the real-time challenges of local business owners,” said Greater Los Angeles Regional Director Naresh “ND” Bhakta. “I urge this council to pause, to listen, and to engage directly with small business owners. Instead of hurting hotels and hospitality, let’s find ways to support them.”

“LA’s Hospitality Industry is nearing an irreversible tipping point. Just in the last few months, we’ve seen hotels, restaurants, and businesses close and leave LA, and airlines are pulling routes from LAX. The business community implores the city leadership to do no more harm to the tourism industry,” said Valley Industry Commerce Association President Stuart Waldman.