September 23, 2025
The San Diego City Council voted 8-0 on Tuesday, September 16th in support of an ordinance to raise wages for hospitality and tourism workers at large hotels, event centers, and amusement parks to $25/hour, phased in beginning in 2026 and reaching full implementation by 2030. The Chamber strongly opposed this targeted increase and expressed concern about its economic impact, including higher operating costs, job losses, reduced competitiveness, and inevitable price increases for consumers. Small businesses tied to hotels and event centers will be disproportionately affected. The Chamber continues to urge the Council to consider policies that truly address cost of living concerns for San Diegans without undermining economic competitiveness.
While the draft ordinance includes exemptions for smaller operators, such as hotels with fewer than 150 rooms, certain event centers, and employers covered by collective bargaining agreements, these carve-outs do little to address the broader economic harm. Large hotels and attractions are anchors of San Diego’s tourism economy, and a wage mandate narrowly applied will negatively ripple through our entire business ecosystem. Restaurants, retailers, tour operators, and locally owned concessions that lease space within these venues will still be required to comply. By creating uneven standards within the same industry, the proposal distorts competition, drives up costs for consumers, and risks job losses across the region.
Chamber President & CEO Chris Cate has been one of the leading voices over the last few weeks in local media opposing this ordinance and spoke at Council in opposition of the proposal.