Last year, hotels in the San Fernando Valley and their Downtown Los Angeles counterparts opted to institute the new Tourism Marketing District (TMD) to promote the city as a tourism destination and to boost the number of visitors to the Greater Los Angeles region. Part of the commitment was the inclusion of an additional 1.5 percent fee added to the hotel bill of each visitor, in addition to the 14 percent Transit Occupancy Tax imposed by the city. The revenue is to be allocated for advertising the city attractions, including Universal Studios, and put Los Angeles on par with other major tourism destinations across the nation. Yet, the Los Angeles City Council is considering a proposal that would manipulate this industry initiative to mandate living wage increases for the hotel workers under the guise of hotel modernization and renovation. The initial proposal by the Los Angeles City Council included an increase in the Transient Occupancy Tax, which VICA and its strategic partners vehemently opposed and were successful in defeating. Unfortunately, the Council is still headed in the wrong direction with their current proposal by undercutting the intentions of the TMD. Make no mistake, this program is a labored-sponsored initiative designed to benefit the unions through city mandates. The initiative does not address the issue of bringing more visitors and tourism dollars to Los Angeles and the Valley. Instead, it is a push by a labor-friendly group to create a living wage for hotel workers and encourage for unionization of all hotel workers. Labor union leaders have given this proposal their full support saying a living wage mandate for hotel workers will stimulate the area’s economy and therefore increase tourism to the greater Los Angeles region. By commandeering funds allocated to other City programs and departments, the City Council will be forcing privately-held hotels to implement renovations and wage increases without addressing the issue of increasing tourism and hotel business. By placing additional mandates on the industry most poised to boost tourism in Los Angeles and the entire Valley region, it also forces the region to become less competitive than neighboring cities. An expansion of the mandate to hotels citywide will make it exponentially more difficult for the City to attract more conventions and conferences. Los Angeles needs to bring in more events like the recent Microsoft World Partners Conference, which filled Los Angeles and Valley hotels to capacity and poured more than $50 million into the local economy in a single week. It will be nearly impossible to continue in this direction without being competitive with nearby areas. Though VICA fully supports investment in our city’s hotels, many hotels in the San Fernando Valley have already undergone substantial upgrades. The Beverly Garland Holiday Inn in North Hollywood, Sheraton Universal in Universal City and Sportsmen’s Lodge in Studio City have all recently undergone renovations and will prompt other hotels to upgrade in order to keep up with the competition. The City Council fails to recognize this and the chilling effect that additional mandates on hotels can have on tourism. Furthermore, the decision to upgrade and renovate should be the decision of the hotel, a private entity, and not a government mandate. VICA opposes placing further mandates that increase the cost of doing business for hotels or any industry in the wake of the worst economic climate since the Great Depression — particularly for those businesses critical to maintaining and growing the Valley and Los Angeles regional tourism economy. Moreover, the Universal Studios attraction “Transformers: The Ride 3D” and the opening of the “Wizarding World of Harry Potter” will create a boom for demand on Valley hotels and create countless jobs in construction and tourism. The modernization of the Convention Center, courtesy of Anschutz Entertainment Group (AEG) and the downtown stadium project, to expand the convention space will also further the city’s capacity for large events. VICA supports business-oriented development and improvements in the hospitality industry that will create a sustainable tourism economy and allow Los Angeles and the San Fernando Valley to flourish. In order to boost the economy and grow tourist numbers and dollars, a business-friendly solution must be attained. Do you think additional mandates on hotels will attract more tourism to the Valley and downtown? Email your responses or thoughts about the column to [email protected].