The Los Angeles City Council voted in favor on Wednesday, despite opposition from business leaders who warned the region had faced a slowdown in international travel, but approved a minimum wage increase for tourism workers.

The proposal, called the country's highest minimum wage proposal by labor leaders, will require hotels with more than 60 rooms and companies operating at Los Angeles International Airport to pay workers $30 an hour by 2028.

This means a minimum wage of 48% for hotel employees over the past three years. Airport workers will increase by 56%.

Most importantly, in July 2026, hotel and airport businesses must provide $8.35 per hour for their workers’ health care.

The package joined was approved by 12-3 votes, with Councillors John Lee, Tracy Park and Monica Rodriguez opposed. Since the statistics are not consistent, a second vote will be required next week.

Rodriguez, who represents the Northeast San Fernando Valley, told her colleagues that the proposal would result in reduced staffing in hotel and airport businesses, resulting in job losses. The same thing happened to the city hall, she said, with elected officials considering layoffs to pay for employees’ wage increases.

"We are now facing 1,600 upcoming rulings because revenues don't match our spending," Rodriguez said. "The same thing happens in the private sector."

After the vote, Congressman Hugo Soto-Martínez celebrated their victory in front of a crowded union workers.

“It’s been too long, but finally, today, the building works for the people rather than the company,” said Soto-Martínez, former organizer of Hotel and Restaurant Union.

Hotel owners, business groups and airport franchising companies predict that the increase in wages will bring a new blow to an industry that has never completely recovered from the common pandemic. They noted that tourism in Canada and elsewhere fell after President Trump's trade war and tightening of U.S. borders.

Adam Burke, president and CEO of the Los Angeles Tourism and Conference Committee, said Canada, France, Germany, Ireland, the Netherlands and the United Kingdom - countries that send large numbers of tourists to Los Angeles have issued formal advice on visiting the United States

"The prospects for 2025 are not encouraging," Burke said.

Several hotel owners warned that higher wages would prompt them to shrink their restaurant business. Some say, hotel companies will avoid future investments in the city, which has long been a global tourist destination.

Jackie Filla, president and CEO of the Los Angeles Hotel Association, said she believes hotels will close restaurants or other small businesses at their premises, and in some cases, completely shut down.

In the short term, she said, some people will tear up their “room” agreement, which provides rooms for the 2028 Olympics and Paralympics.

"I don't think anyone would do that," said Fira. "The hotel is happy to host guests. They are happy to be in the Olympics. But they can't make money."

When previous wage increases were approved, business leaders also issued a horrible warning to the economy — just proved wrong — when it was approved. Durrum, who runs the Rise of Tourism Workers in her group, told the council that higher wages would only benefit the region.

“People have more money in their pockets — they spend a lot of money,” she said.

Wednesday's vote was a huge victory, bringing the strong political force at the Town Hall. The union is known for knocking on the door because of its favored candidates, which in some cases cost six figures to get them elected.

Here, Local 11 calls the proposal here the “Olympic Salary”, which will ensure its members have enough money to keep up with inflation. The union works with airport workers represented by service employees, and the International Union Joint Service Workers West also said that companies should not be the only company that benefits from the 2028 Olympics.

Workers from both unions testified their efforts to increase in household expenses, including rent, food and fuel. Some plead for better health care, while others talk about having to work multiple jobs to support their families.

"We need these wages. Please do the right thing," said Jovan Houston, customer service agent at Lax. "Do this for workers. Do this for single families. Do this for parents like me."

Sonia Ceron, 38, who is a dishwasher for airline catering company Flying Food Group, said she has a second job in Beverly Hills to clean the house, about 32 hours a week. Ceron lives in a small studio apartment in Ingwood, which is difficult for her 12-year-old daughter.

"My daughter, like every child, wants to have her own room, be able to call her friends and have her privacy. Now, that's impossible."

Over the past few decades, political leaders in Los Angeles have enacted many wage laws. The hotel's minimum wage was approved in 2014 and is currently $20.32 per hour. The minimum wage for Los Angeles International is $25.23 per hour, once an hourly healthcare payment is included.

For almost everyone in Los Angeles, the minimum wage is $17.28 per hour, 78 cents higher than the state.