Hotel owners’ groups highlight damaging impact of minimum wage hikes
Following the green light for a minimum wage hike to $15 an hour in Seattle, The American Hotel & Lodging Association (AH&LA) and the Asian American Hotel Owners Association (AAHOA) jointly released a study showing how minimum wage increases could negatively impact the US hotel industry.
A research paper entitled ‘Extreme Wage Initiatives and the Hotel Industry: Impact on Local Communities and the Nation,’ suggests nationally, over 12,000 hotel positions could be lost and annual guest room revenue could drop by over $600 million.
The study author, John W. O’Neill, Ph.D., of the school of hospitality management at Pennsylvania State University based these figures on an average minimum wage of $10.10 per hour nationally similar to a proposal that was blocked in the Senate.
AAHOA Chairman Pratik Patel said the study’s findings highlight a potentially "destructive impact on entry-level workers and job opportunities" in hospitality.
"As an industry, we should not be faced with such a significant economic hit as these are risks we simply cannot afford to take," said Katherine Lugar, AH&LA CEO.
The Congressional Budget Office previously said the implementation of a minimum wage of $10.10 per hour could result in the loss of 500,000 jobs nationwide.
The study also looked specifically at Los Angeles where hotel worker groups have been pushing for a minimum wage of $15.37 an hour.
It said hotel values in Los Angeles could eventually drop by $20 million if the proposal became law.
A separate study estimates 40% of LA hotel workers live below the poverty line.
TravelMole Editorial Team
Editor for TravelMole North America and Asia pacific regions. Ray is a highly experienced (15+ years) skilled journalist and editor predominantly in travel, hospitality and lifestyle working with a huge number of major market-leading brands. He has also cover in-depth news, interviews and features in general business, finance, tech and geopolitical issues for a select few major news outlets and publishers.
Vegas’s Billion-Dollar Secrets – What They Don’t Want Tourists to Know
Visit Florida’s New CEO Bryan Griffin Shares His Vision for State Tourism with Graham
Chicago’s Tourism Renaissance: Graham Interviews Kristin Reynolds of Choose Chicago
Graham Talks with Cassandra McCauley of MMGY NextFactor About the Latest Industry Research
Destination International’s Andreas Weissenborn: Research, Advocacy, and Destination Impact
Graham and Don Welsh Discuss the Success of Destinations International’s Annual Conference
Graham and CEO Andre Kiwitz on Ventura Travel’s UK Move and Recruitment for the Role
Brett Laiken and Graham Discuss Florida’s Tourism Momentum and Global Appeal
Graham and Elliot Ferguson on Positioning DC as a Cultural and Inclusive Global Destination
Graham Talks to Fraser Last About His England-to-Ireland Trek for Mental Health Awareness
Kathy Nelson Tells Graham About the Honour of Hosting the World Cup and Kansas City’s Future
Graham McKenzie on Sir Richie Richardson’s Dual Passion for Golf and His Homeland, Antigua
ADS PRO 
Airlines suspend Madagascar services following unrest and army revolt
TAP Air Portugal to operate 29 flights due to strike on December 11
Qatar Airways offers flexible payment options for European travellers
Airbnb eyes a loyalty program but details remain under wraps
Air Mauritius reduces frequencies to Europe and Asia for the holiday season