Economic Impact of City Council Tourism Motion

by Maria Salinas

The Los Angeles Area Chamber of Commerce announced the formation of the Alliance for Economic Fairness, a multiple-sector coalition, to protect and support hospitality jobs and small businesses in the region and by opposing the City of Los Angeles' proposal to raise the minimum wage for hospitality workers to an unprecedented $30 per hour.

While the city’s ongoing cost of living crisis has affected every worker, small business, family, and our community, the proposed $30 Wage Ordinance will damage the Los Angeles economy and jobs. It also unfairly targets a vital industry for our region that has yet to recover from the pandemic.

According to a new study conducted by Oxford Economics and released by the Chamber, the $30 Wage Ordinance would lead to the loss of approximately 14,870 jobs across the Los Angeles economy and a $1.1 billion decrease in visitor spending. Other report highlights include:

• The construction sector, which has historically been an important source of jobs for union workers, would be particularly hard-hit, with more than 2,000 jobs at risk due to reduced hotel construction spending.
• Furthermore, the study estimates a staggering $169 million decrease in state and local tax revenue, including $55 million in local tax revenue, which directly funds essential public services like homelessness, public safety, education, and other social safety net initiatives — just as the city is facing future budget deficits.

Read our press release here and view the full report here. The Alliance for Economic Fairness was formed by statewide and local leaders in response to our state’s skyrocketing cost of living — providing a platform to residents, local businesses, and civic organizations, to make their voices heard.