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The San Diego City Council has approved a new hospitality minimum wage ordinance that will gradually raise hourly pay for thousands of workers in the tourism sector to $25 by 2030.
The measure, adopted Sept. 16 and introduced by Councilmember Sean Elo-Rivera, applies to employees at hotels with 150 or more rooms, major event centers, amusement parks, and the San Diego Zoo. The phased increases will begin on July 1, 2026, when the minimum wage for covered workers rises to $19 an hour. The wage will increase annually until it reaches $25 an hour by July 1, 2030. Future adjustments will be tied to the Consumer Price Index.
Supporters of the ordinance said the policy addresses San Diego’s high cost of living and targets a sector where wages have historically lagged. The city’s current minimum wage is $17.25, higher than both the state and federal minimums, but well below what analysts say is needed to live in San Diego. The Massachusetts Institute of Technology’s Living Wage Calculator estimates a single adult in San Diego County would need to earn more than $30 an hour to meet basic expenses.
“The workers who clean rooms, staff events, and welcome millions of visitors deserve wages that allow them to live in the city they serve,” Elo-Rivera said after the vote. He credited hospitality workers and unions for organizing around the issue and pushing for higher pay.
Business groups, however, warned that the policy could increase costs for both employers and residents. Chris Cate, president and CEO of the San Diego Regional Chamber of Commerce, called the ordinance “shortsighted” and said it would “drive up costs for businesses and families alike without addressing the region’s underlying affordability crisis.”
The hospitality industry plays an outsized role in San Diego’s economy, supporting nearly one in eight local jobs, according to the San Diego Tourism Authority. Yet many of those positions pay close to minimum wage. Median hourly wages for housekeepers, janitors, and entertainment attendants in San Diego County range between $17 and $19, below the estimated living wage threshold.
The debate also touched on the city’s ongoing housing affordability challenges. A state report found that two full-time minimum wage earners in coastal counties such as San Diego often spend more than half their income on rent. The San Diego Housing Commission has a waiting list of more than 71,000 households seeking rental assistance, with average wait times exceeding 15 years.
San Diego officials said the new ordinance could help reduce reliance on public assistance programs while supporting a more stable workforce in industries with historically high turnover. They also noted that the city spends millions of dollars annually supporting the tourism sector, including subsidies for major venues and promotion of visitor-related activities.
The measure follows similar actions in other California cities. Los Angeles approved a wage increase for hotel and airport workers that will reach $30 an hour in 2028. Long Beach voters passed a measure in 2024 that will bring hotel worker pay to $29.50 an hour by the same year. Without action, San Diego’s minimum wage was projected to reach less than $20 an hour by 2028, more than $10 below that of neighboring jurisdictions.
San Diego’s tourism industry remains one of the strongest in the country. In 2024, local hotels booked 17.5 million rooms, and the county recorded a 74.3% occupancy rate — among the highest in the nation. Major venues such as Petco Park, the San Diego Convention Center, and SeaWorld continue to draw millions of visitors annually.
With the ordinance, San Diego will join Los Angeles and Long Beach in setting higher wage floors for large hospitality employers. The new wage scale is set to take effect July 1, 2026, with the full $25 rate reached by 2030.
