SAN DIEGO, CA – In a pivotal move toward economic equity and workforce sustainability, the San Diego City Council’s Select Committee on Addressing the Cost of Living has unanimously advanced a landmark proposal to increase the minimum wage to $25 per hour for thousands of hospitality workers. This measure, if adopted by the full City Council later this year, will significantly uplift employees across San Diego’s thriving tourism sector—including those at amusement parks, large hotels, zoos, and major event venues.
Councilman Sean Elo-Rivera, who chairs the select committee and championed the wage proposal, underscored the initiative’s moral and economic imperative. “This is not radical—this is what basic dignity demands,” said Elo-Rivera. “We’ve heard these scare tactics before. Every time they say the sky will fall, and every time they are wrong.”
The proposal represents more than a wage adjustment; it’s a strategic economic recalibration. Cities like Los Angeles and Long Beach have already taken similar actions in preparation for the upcoming 2028 Olympic Games. San Diego is now poised to follow suit, ensuring that the very workers who fuel its multibillion-dollar tourism engine are not left behind.
Shifting Economic Winds in Tourism Capital
If enacted, the ordinance will apply to hospitality staff at hotels with 150 or more rooms, amusement parks, large-scale event centers, and iconic institutions such as the San Diego Zoo. It will return to Elo-Rivera’s office for ordinance drafting before being brought before the full City Council.
Supporters of the measure assert that the proposal is long overdue. Since the city adopted the Earned Sick Leave and Minimum Wage Ordinance in 2016, San Diego’s minimum wage has increased from $10.50 to $17.25—surpassing both the California state rate of $16.50 and the federal minimum wage of $7.25. However, the rising cost of living continues to outpace wage growth.
According to the MIT Living Wage Calculator, a single adult working full-time in San Diego County needs to earn at least $30.71 per hour to cover basic living expenses. A household with two adults and one child requires a combined wage of $49.13 per hour. Clearly, the proposed $25 minimum wage is still conservative compared to what residents need to survive.
Mixed Reactions from the Business Community
Despite the overwhelming support within the committee, not all stakeholders are aligned. Chris Cate, President and CEO of the San Diego Regional Chamber of Commerce and a former city councilman, voiced concerns about the broader economic impact. “San Diego is an expensive city to live in,” he acknowledged. “But this will not make it easier to afford life here. It may do the opposite.”
A report by the city’s Independent Budget Analyst offered a balanced perspective, noting that similar minimum wage hikes in other California cities had no significant effect on transient occupancy taxes—San Diego’s lucrative hotel tax revenue stream. Still, it warned that businesses may respond by reducing hours and scaling back services.
Caroline Perry, COO of the San Diego Padres, emphasized that the team already pays the highest mandated wages in Major League Baseball under the city’s existing Living Wage Ordinance. “While we believe in fair, competitive wages, this proposal is too extreme,” said Perry. “It would drive up the cost of living, make it harder for San Diegans to attend games, and hurt local businesses reliant on Petco Park.”
The Padres, a celebrated institution valued at $1.95 billion according to Forbes, recently broke their all-time single-season attendance record, drawing over 3.3 million fans to Petco Park in 2024.
Local Voices and Moral Imperatives
Councilman Henry Foster III brought the conversation back to fundamental values. “At $25 an hour, we’re talking about a $52,000 annual income. That’s not even considered livable in San Diego, but it’s a step in the right direction—and it’s common sense.”
Councilwoman Marni von Wilpert echoed the sentiment. “Big corporations along our waterfront are not mom-and-pop shops. They can afford to pay a living wage,” she stated. However, she advised a phased-in implementation for nonprofits like the San Diego Zoo and smaller hospitality entities to adjust responsibly.
Public commentary during the committee meeting was electric, with over 80 individuals voicing their positions. Nate Fairman of IBEW Local 465 performed a localized rendition of the union classic “Which Side Are You On?”—posing the stark question: “Are you on the side of the workers or the bosses?”
Brigette Browning, President of the San Diego Labor Council and UniteHERE! Local 30, also pointed to the contradiction of opponents who can afford lobbyists but claim to lack funds for fair wages.
Meanwhile, Clayton Fowler, representing the Downtown San Diego Partnership, warned the council of the potential downside. “Thousands of jobs and the health of our downtown economy are on the line,” he cautioned.
A Forward-Thinking Strategy
Supporters argue that San Diego’s hospitality industry already enjoys substantial public support, including $62 million in marketing subsidies from the Tourism Marketing District and nearly $21 million annually in property tax assessments benefiting the San Diego Zoo. With these advantages, advocates insist that large tourism enterprises are well-positioned to invest in their workforce without compromising service quality or profitability.
Emily Renda, business leader and board member of Business For Good San Diego, concluded, “$25 an hour is the bare minimum we should be paying. This is a progressive and necessary step forward for our city.”
If the ordinance passes as currently proposed, the new wage would take effect on January 1, 2026—heralding a new era of workforce justice, economic dignity, and strategic foresight for San Diego.
As Councilman Elo-Rivera aptly stated, “Being San Diego’s team means standing with San Diegans—not against them.”