Skip to content

Search

Latest Stories

LA tourism lags in post-pandemic recovery

Proposed legislation is worsening industry challenges and the city's budget shortfall

Los Angeles tourism challenges 2025

Los Angeles is still grappling with the pandemic’s long-term effects and recent wildfires, with international visitation remaining well below 2019 levels—more so than any other major U.S. city, according to a new American Hotel & Lodging Association report.

Los Angeles Tourism Faces Post-Pandemic and Wildfire Challenges

LOS ANGELES IS STILL grappling with the long-term effects of the pandemic and, more recently, wildfires, according to a new report by the American Hotel & Lodging Association. International visitation also remains well below 2019 levels, more so than in any other major U.S. city.

The AHLA report, “L.A. in Focus: The Tourism Industry Today,” found that recent wildfires and proposed city council legislation are compounding challenges for the tourism industry and contributing to the city’s budget shortfall.


“Los Angeles’ tourism industry has historically been a top contributor to the city’s economy,” said Rosanna Maietta, AHLA president and CEO. “However, several external factors have brought the hospitality industry to an inflection point. While the city faces a significant budget deficit, the city council continues to push legislation that will increase hotel operational costs, leading to thousands of layoffs and ultimately reducing taxable revenue.”

The tourism industry is a top-five employer in Los Angeles County, supporting more than 540,000 jobs, the report said. In 2023, it generated over $40 billion in local business sales and $290 million in transient occupancy tax revenue.

However, Los Angeles experienced a $14.3 million TOT shortfall in fiscal year 2023–2024. Midway through fiscal year 2024–2025, the gap had already reached $13.9 million, the report found.

Maietta said the report reinforces AHLA's message to the mayor and city council: abandon efforts to undermine the hotel industry and collaborate on the city’s recovery and preparations for major global events.

Key trends and findings from the report include:

  • Los Angeles ranks lowest among major cities in COVID-19 recovery, reaching only 79 percent of 2019 levels. International visitors account for 23 percent of overnight visitation but 49 percent of overnight visitor spending.
  • Labor expenses, which make up about 50 percent of a hotel’s total costs, have outpaced revenue growth since 2020.
  • Legislation like the Worker Minimum Wage Ordinance could worsen the city’s economic situation, leading to the loss of 14,000 hotel jobs, a $169 million drop in state and local tax revenue, and a $342 million decrease in hotel construction spending.

The report warned that new hotel operational restrictions being considered by the city council could further depress the industry and increase TOT shortfalls as the city prepares for the 2026 World Cup and 2028 Olympics.

Additionally, a recent AHLA report found that hotels are using new tools and technologies to recruit and retain employees as the industry works toward pre-pandemic staffing levels. According to Oxford Economics and STR/CoStar, the industry is projected to add more than 14,000 employees in 2025, although staffing will remain below 2019 levels.

More for you

ICE Raid Resumes in Hotels & Farms After DHS Reversal
Photo by Mario Tama/Getty Images

Reuters: ICE resumes hotel immigration raids

ICE Reverses Decision to Pause Raids on Key Industries

U.S. IMMIGRATION OFFICIALS have reversed enforcement limits at hotels, farms, restaurants and food processing plants days after issuing them, following conflicting statements by President Donald Trump, according to Reuters. ICE leadership told field office heads on Monday it would withdraw last week's directive that paused raids on those businesses.

ICE officials were told a daily quota of 3,000 arrests—10 times the average last year under former President Joe Biden—would remain in effect, two former officials said in the report. ICE field office heads raised concerns they could not meet the quota without raids at the previously exempted businesses, Reuters reported, citing a source.

However, it was not clear why the directive was reversed.

Keep ReadingShow less
Trump Halts Immigration Raids on Hotel and Service Workers
Photo by Mario Tama/Getty Images.

Reports: Trump halts roundup of hotel workers, others

What the ICE Arrest Freeze Means for the U.S. Hotel Industry?

PRESIDENT TRUMP HAS ordered Immigration and Customs Enforcement to halt arrests of undocumented hotel workers, as well as restaurant and farm workers, various media sources reported Friday. Trump’s order was intended to address industry concerns as nationwide protests against ICE raids continue.

Citing internal emails and other sources, the New York Times reported the new orders to pause raids and arrests in hotels, restaurants and the agricultural industry. A source told CBS News that Trump was not aware of the scale of the agency's operations.

Keep ReadingShow less
BEST's free online anti-trafficking training

BEST launches anti-trafficking training for hotel staff

Why Hotels Are Key in the Fight Against Human Trafficking?

BUSINESS ENDING SLAVERY and Trafficking is offering a free version of its “Inhospitable to Human Trafficking” training for hospitality employees. Any hospitality worker can now access the 30-minute online video through BEST’s website.

The hospitality industry sees frequent human trafficking incidents because traffickers use hotel premises to commit crimes and house victims, BEST said in a statement. The non-profit aims to give more hotel employees the tools to address this crime.

Keep ReadingShow less
Carbon monoxide detector installed in a U.S. hotel room ceiling

Carbon monoxide detector bill ‘reintroduced’

What is the Safe Stay Act and why was it reintroduced?

LEGISLATORS RECENTLY REINTRODUCED legislation requiring carbon monoxide detectors in all hotel and short-term rental rooms nationwide. About 36 states currently do not mandate them in hotels and short-term lodging.

Industry groups, including the American Hotel & Lodging Association, have urged hotels to install carbon monoxide monitors in areas with fuel-burning appliances and adjacent spaces “at a minimum.”

Keep ReadingShow less