Los Angeles tourism chief warns of economic downturn and potential job losses

The Regular City Council meeting held on May 14, 2025, in Los Angeles focused on the current state of the tourism industry, with a significant presentation from Adam Burke, president and CEO of the Los Angeles Tourism and Convention Board. Burke provided a detailed overview of the challenges facing the tourism sector, which is a vital component of the local economy, employing over 510,000 residents and generating substantial revenue for the city.

Burke reported that the tourism industry in Los Angeles is experiencing a downturn, with a notable decline in visitation attributed to several factors. He highlighted the lingering effects of January's wildfires, which have led to widespread misconceptions about the extent of the damage, with many travelers mistakenly believing that 41% of Los Angeles was affected, while the actual figure is less than 2%. This misperception has negatively impacted the likelihood of visitors traveling to the city.

Additionally, Burke pointed out that the post-pandemic recovery for Los Angeles is lagging behind other major cities due to long visa wait times, high refusal rates for international travelers, and a lack of direct air service returning to pre-pandemic levels. He noted that international travel spending in Los Angeles has seen significant declines, with reductions in spending from key markets such as Canada, South Korea, and the United Kingdom.

The council members expressed concern over the implications of these trends, particularly in light of upcoming major events like the World Cup and the Olympic Games. Burke emphasized the need for a coordinated effort between the tourism industry, local businesses, and elected officials to address the challenges and combat the negative perceptions affecting travel to the U.S.

The discussion also touched on the potential impact of proposed wage increases for hospitality workers. Burke referenced a study by Oxford Economics, which projected that a $30 per hour wage could lead to a loss of $2.3 billion in local business sales, $55 million in tax revenues, and nearly 15,000 job losses annually. Council members acknowledged the delicate balance needed to support workers while ensuring the sustainability of the tourism industry.

As the meeting progressed, the council deliberated on the implications of these findings and the importance of maintaining a healthy tourism sector to support the local economy. The discussions underscored the urgency of addressing the challenges facing Los Angeles as it prepares for significant upcoming events and seeks to recover from the impacts of the pandemic and other external factors.