WASHINGTON (May 20, 2025) -- The American Hotel & Lodging Association (AHLA) today called on Mayor Karen Bass to veto the proposed tourism wage ordinance for hotel and airport workers, warning it would unleash an “economic tsunami” as Los Angeles tourism is already struggling in the wake of the devastating wildfires, a prolonged international travel slowdown, and a lagging pandemic recovery.

“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.”

Representatives of the tourism industry met with city councilmembers numerous times throughout the consideration of the ordinance and asked for meetings with the mayor, seeking to find a compromise that benefits workers and bolsters the tourism industry. These requests were largely ignored.

The Los Angeles tourism industry is facing major headwinds. International travel is down 13.5%, Canadian visitation has cratered more than 70%, airlines have pulled over 320,000 seats from LAX, and 11 LA hotels—totaling 3,000+ rooms—are now flagged on lender watchlists.

“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.”

If this ordinance becomes law, the fallout will not be theoretical—it’ll be felt in pink slips, shuttered hotels, and lost tax revenue into the city.
 
CONTACT: media@ahla.com