CAHospitality.org
July 10, 2023
Dear Mayor Richardson and City Council Members:
The California Hospitality United Coalition represents social justice organizations, small businesses, and minority chambers of commerce as a united coalition protecting hospitality jobs and strengthening the economy.
Regarding item number 23-0737, we urge the City to first, limit its labor market analysis on hospitality worker wage rates to just the City of Long Beach and second, conduct the analysis by employing the services of an independent economic research consultant. There is no single market for labor and adjustments to the Long Beach Hotel Worker Wage Ordinance will affect not only hotels, but all businesses within the city — impacting many small businesses and ultimately increasing the cost of living for residents.
Therefore, we believe it is vital that the City’s analysis be expanded in scope to consider wage earnings for city employees and non-hospitality industries as well as externalities that impact all businesses, jobs, and tax revenue within the city.
A recent study conducted by Oxford Economics found a $25/hour minimum wage for hotel and airport workers in the City of Los Angeles would result in:
● $1.9 Billion in Lost Business Sales at Los Angeles Businesses ● $846 Million Decrease in Visitor Spending
● $138 Million in Lost State and Local T ax Revenue
● $321 Million in Lost Construction Spending
● 12,187 Lost Jobs
It is incumbent upon the Long Beach City Council to consider the broader consequences of any adjustment to the Hotel Worker Wage Ordinance on the greater business community and Long Beach residents. With inflation still high and a potential recession on the horizon, the City Council ought to be fully informed before taking further action.
In conclusion, we urge the City to:
1) Limit the labor market analysis to just the City of Long Beach 2) Employ an independent economic research consultant
3) Expand the scope of the analysis to include wage earnings for city employees and non-hospitality industries in addition to potential negative impacts on all businesses, visitor spending, local tax revenue, and jobs
Sincerely,
Lynn S. Mohrfeld, CAE
President & CEO, California Hotel & Lodging Association Attached: California Hospitality United Coalition member list A project of the California Hotel & Lodging Association
The California Hospitality United Coalition
Together, we’re Committed to Protecting California's Hospitality, Economy, and Jobs.
Chambers of Commerce
Antelope Valley Chambers of Commerce
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A project of the California Hotel & Lodging Association