A city council committee is considering a new proposal to raise the minimum wage for tourism and hospitality workers in the city of San Diego.
According to the San Diego Tourism Authority, the industry has a $22 billion impact on our region, and one out of every eight San Diegans works in it.
Now San Diego Councilmember Sean Elo-Rivera is proposing a $25 an hour minimum wage for those workers. Elo-Rivera says this is not an original idea.
“L.A. just raised their minimum wage to $30,” Elo-Rivera said.
But tourism industry leaders say this is bad for their business. Chris Cate, president and CEO of the San Diego Regional Chamber of Commerce says this could cripple San Diego’s economy.
“At some point in time, you're going to see the negative impacts of these mandates, whether it's automation, cutting jobs or businesses picking up and leaving and shuttering their doors, all these things are not conducive to growing our regional economy here in San Diego,” Cate said.
Steve Pinard, owner of Action Sport Rentals in San Diego, says his business has six locations and employs around 150 people during the high season. He says if he’s forced to pay his employees $25 an hour, he’ll close.
“My business will shut down under this proposal. I can not absorb that,” Pinard said.
Elo-Rivera says this argument is old and doesn’t hold water.
“San Diego is better than 'the sky will fall' arguments. Whenever we begin talking about paying workers a fair wage, every single time, workers ask for a decent wage to keep a roof over their heads and food on their family's plates,” Elo-Rivera said.
According to a 2022 Tourism Authority study, the average wage for a tourism worker is $28 an hour, $3 more than the proposed minimum wage.
The proposal will be brought before the Select Committee on Addressing Cost of Living.
