Despite business leaders’ dire warnings, Los Angeles officials have approved a radical minimum wage hike for hotel workers to $30 per hour by 2028. This liberal policy threatens to destroy thousands of jobs and boost tourism in a city already beset by homelessness, crime, and economic decline.
Liberal Wage Mandate Threatens LA Tourism Industry
The Los Angeles City Council voted 12-3 to mandate wage increases for hotel and airport workers, starting at $22.50 in 2025 and reaching $30 by 2028. This represents a massive 48% increase for hotel employees and 56% for airport workers, plus an additional $8.35 per hour for healthcare by 2026.
L.A. council backs $30 minimum wage for tourism workers, despite warnings – Los Angeles Times https://t.co/wum9JLyAd0
— Hector Becerra (@hbecerraLATimes) May 15, 2025
Business leaders warn that this government overreach will devastate LA’s struggling tourism sector. Councilmember John Lee, one of the few voices of reason, warned the mandate would “take an ax to the local economy,” potentially triggering layoffs and hotel closures across the city.
Job-Killing Policy Targets Hotels During Tourism Decline
The mandate explicitly targets hotels with more than 60 rooms and businesses at Los Angeles International Airport, forcing them to comply regardless of their financial situation. Tourism industry representatives have sounded the alarm that international travel to Los Angeles is already declining, making this the worst possible time for the government to impose costly new mandates.
Bravo, LA City Council!
Thanks to you, there’ll be many unemployed hotel workers and a lot of “self check in” kiosks and robot room service attendants!
🤦♀️ https://t.co/v2fRwcFAGE pic.twitter.com/A6TxBfttao
— Houman David Hemmati, MD, PhD (@houmanhemmati) May 15, 2025
Some hotel owners have indicated they may reduce operations or cancel planned investments in Los Angeles. Mark Davis, representing a hotel developer, stated the wage mandate would “likely kill” future projects, preventing job creation and economic growth in the city.
Democrats Ignore Economic Reality While Pushing “Olympic Wage”
The wage mandate is being promoted as an “Olympic wage” ahead of the 2028 Summer Games coming to Los Angeles. Liberal council members celebrated the wage hike while dismissing legitimate concerns about its economic impact. Councilmember Hugo Soto-Martínez declared: “It’s been way too long, but finally, today, this building is working for the people, not the corporations.”
“We are right now facing 1,600 imminent layoffs because the revenue is just not matching our expenditures. The same will happen in the private sector.” – Rodriguez.
The mandate still requires one more council vote before becoming law, but it appears likely to pass despite warnings from economic experts. The tourism industry, already bearing the burden of California’s excessive regulations and taxes, now faces another government-imposed obstacle to growth and prosperity.
Sources: