Ahead of a Los Angeles City Council committee vote on a proposal to increase the minimum wage for hotel and tourism workers, the head of Los Angeles World Airports said Monday that the increase would not affect LAX but warned it could have lasting impacts on the airport’s business partners.

LAWA CEO John Ackerman told the five-member Budget and Finance Committee that the proprietary department does not have a position on the proposal. However, he emphasized that airport partners are concerned about the added financial burden amid growing concerns of L.A.’s declining tourism industry.

“I’m telling you what our partners are telling us, and you know, I believe them. I don’t think they are bluffing,” Ackerman said. “We’ve already seen they need relief. We’ve seen their books.”

According to Ackerman, LAWA’s business partners — local and global — are struggling and may be less inclined to continue operating in Los Angeles long term.

Ackerman also gave a brief presentation to committee members Monday on LAWA’s proposed budget for the 2025-26 fiscal year. Highlights of the spending plan include operating expenses projected at $1.29 billion, a 9% increase over the 2024-25 fiscal year, as a result of higher staffing and passenger boarding costs.

He noted passengers coming to the airport are projected to decrease by 13% relative to 2019, as figures have yet to rebound to pre-COVID levels. Domestic and international tourism are anticipated to decline for 2025 compared to 2024 due to federal policies.

“We’re the third highest-cost airport in the United States for airlines, which impacts our competitiveness,” Ackerman said. “All of this puts additional pressure on our partners, as they rely on passenger volumes to fuel their business.”

In late April, Visit California reported that statewide travel dropped by 8.8% in February and 12.1% in March. Air travel to California from Canada dropped 15.5%, from Mexico 24.2% and from the United Kingdom 22.1%, according to the report.

The nonprofit develops and maintains marketing programs to boost tourism in California.

“Flight books from Canada to the US fell by over 70% in early 2025, prompting airlines to cut more than 300,000 seats from LAX through October,” Ackerman added.

The LA Tourism and Convention Bureau has anticipated year-over-year reductions in total international visitors to Los Angeles between 25% to 30%. Ackerman repeated that figure during his presentation to emphasize the need for unity during what he called a time of crisis.

In a bid to promote tourism, LAWA is building a robust sales team.

Additionally, LAWA has offered to take in city workers who may be laid off due to a nearly $1 billion budget deficit for the 2025-26 fiscal year. City officials are working to prevent or reduce 1,647 planned layoffs.

On Tuesday, the City Council’s Economic Development and Jobs Committee will consider draft ordinances required to effectuate the minimum wage increase for tourism workers.

The so-called Olympic Wage proposal would increase hourly wages for hotel and airport workers to $22.50 an hour in July, followed by a jump to $25 an hour by 2026, $27.50 an hour by 2027, reaching $30 by 2028 — when the Olympic and Paralympic Games arrive in the L.A. region. They would also receive a new $8.35 per hour payment to cover healthcare.

City officials have considered exemptions for LAX concessionaires with 50 or fewer employees, along with certain hotel owners under specific conditions.

Hoteliers and airport concessionaires criticized the proposal, saying it would raise labor costs and could force some businesses to shut down.

“Hotel employees in Los Angeles are paid the highest wages in the country, but right now their jobs are at risk,” Rosanna Maietta, CEO of the American Hotel and Lodging Association, said during a news conference at City Hall on April 29.

“City leaders are considering a damaging proposal that will jeopardize these jobs; it would devastate much needed tourism related tax revenue and lead to the closure of hotels that are desperately needed to successfully host the 2026 World Cup, the 2027 Super Bowl and the 2028 Olympics.”

Meanwhile, Kurt Petersen, co-president of Unite Here Local 11 — the union backing the minimum wage hike — said the measure would boost the local economy and support working families. In a statement, he said, “City leaders have an opportunity to ensure the Olympic and Paralympic Games benefit hard-working Angelenos, and this ordinance does just that.”