The Oliver Hotel concierge Damion Huntoon works at the front desk of the downtown Knoxville boutique hotel on Monday, Dec. 5, 2022. The hospitality industry is projected to have the greatest demand for workers in the Knoxville area in 2023. Kns Winter Jobs Bp
Los Angeles, California – With the 2028 Olympic and Paralympic Games on the horizon, the Los Angeles City Council is pushing forward with a sweeping wage increase for tourism workers — but local business leaders say the timing couldn’t be worse.
The proposed ordinance, which would raise the minimum wage for airport and hotel workers to $30 an hour by 2028, cleared a key hurdle Tuesday after the council’s economic development committee advanced it for a full vote later this month. The measure also includes mandatory healthcare payments of $8.35 per hour starting January 2026.
The first wage hike, increasing hourly pay to $22.50, is set to begin July 1.
But a growing coalition of business owners and industry representatives is pleading with the city to reconsider. Since the council endorsed the plan five months ago, Los Angeles has seen a 5% decline in passenger traffic at LAX, a devastating wildfire, and a deepening citywide budget crisis.
“Two hotels have closed. More are starting to reduce services and lay off workers,” warned Rosanna Maietta, president of the American Hotel and Lodging Association. “If this ordinance is enacted, we expect more hotels to close.”
LAX concession businesses are also sounding the alarm. According to airport chief executive John Ackerman, many vendors are on the brink and may need additional support to survive. “It becomes kind of a downward spiral,” Ackerman said.
City leaders are divided. Councilmember Traci Park, the lone committee member to oppose the hike, warned that rising wages during an economic downturn could slash hotel tax revenues — a vital funding source for public services.
“We are moving forward with a 50% increase in wages and healthcare costs while our tourism economy is underwater,” Park said, pointing to the city’s projected $1 billion budget shortfall for 2025–26.
But supporters of the measure say the current crisis only underscores the need for better pay. “We live in a city people cannot afford,” said Councilmember Hugo Soto-Martínez, a former hotel union organizer. “They don’t have health insurance.”
Workers say the raise is long overdue. Hugo Ortega, a line cook and maintenance engineer, said the increase would finally help him support his three children without working 70-hour weeks.
“I have to be doing two jobs to keep my family going,” Ortega said.
Despite sharp drops in international travel and tourism, advocates argue the city must invest in its workers — not just its stadiums and convention centers — ahead of the global spotlight in 2028.
