Transforming the Gateway to L.A.:

The Economic Benefits of a Sustainable Tourism Model

A new study, released by the Los Angeles Alliance for a New Economy (LAANE), examines the impact of two major achievements on Century Corridor: (1) the Living Wage Ordinance, which went into effect in July 2008; and (2) the successful negotiation of collective bargaining agreements at four of the 12 Century Corridor hotels. A coalition of community members, workers, and clergy leaders joined together to transform thousands of low wage hotel jobs into good, quality jobs.  With the support of the Mayor and City Council, their efforts have resulted in a Living Wage Ordinance and four union contracts.

Benefits to the community

• An additional $23.9 million in the local economy from increased wages and additional revenue generated by increased spending over the first four years.
• 106 new jobs in L.A. County from the increased revenue over the first four year
• Decreased reliance on public assistance by hotel workers
• Reduced public health costs from increased health care coverage by hotel workers
• Development of a job training program for local residents

Benefits for workers:

• The average worker affected by the Living Wage Ordinance is projected to receive an additional $4,141 in wages over the first four years of the ordinance.
• Century hotel workers who are covered by union contracts will receive, on average, an additional $13,002 in wages and benefits over the first four years of their contracts.
• More workers will have access to affordable family health care coverage
• Union contracts also provide for a pension plan, increased paid time off, commitments to diversity in hiring, and safer, reduced workloads.

Benefits for the industry:

• The Century Corridor hotel market will be able to compete with other hotel submarkets that paid higher wages.
• Higher worker retention rates
• Infrastructure investment
• Initial design of a conference center in order to lure more visitors to the region

To view the full report, click here.