When the San Diego City Council’s Cost of Living Committee considered an item in June to raise the minimum wage for tourism workers to $25 an hour, a familiar narrative quickly took root: The business community opposed the proposal, and would spend millions of dollars to fight its implementation.
It’s a stale storyline: business vs. labor, and to be sure, the city’s entrenched interests came out swinging.
But in council chambers, a different narrative played out. Eight individuals from the business community stood in support of the proposal, carrying with them the backing of Business for Good San Diego, a nonprofit organization representing more than 100 San Diego businesses.
We were proud to stand beside San Diego’s workers, because we know it benefits us all when:
— Workers earn a living wage, supporting business success through stronger recruitment, better retention and a more motivated workforce. This kind of stability will help uphold our standards of service, so they match the beauty of our coastline
— We stand out against other destinations. The market for tourists is competitive in Southern California, and competition for skilled labor is just as fierce. Our neighbors in Long Beach and Los Angeles have already committed to wage increases, and San Diego can’t risk being left behind
— The local economy is strengthened when workers can afford to live near their workplace. This reduces commutes and the pollution that comes with them, increases local spending and boosts community connectivity.
Of course we know the tourism industry is vital to San Diego’s economic prosperity. But what is the tourism industry without the one in eight San Diegans employed in this sector?
The irony isn’t lost on us that the opponents of this law will spend millions of dollars to reverse its implementation at the ballot box, but aren’t willing to guarantee a wage to workers that still falls more than $5 below what MIT cites as a living wage in San Diego.
We all stand to benefit when we raise that wage.
— Mountains of research show that increasing minimum wages typically raises overall wages without harming employment outcomes.
— Increasing wages to an efficiency wage lowers turnover, improves employee morale and reduces hiring costs.
— Higher wages at the low end of the income spectrum boosts consumer spending and stimulates the local economy.
The groups opposing this will tell you that we don’t have a vested interest in this issue, because we’re not hotel owners.
But we are San Diegans. That alone sets us apart from many of the people who profit most from our tourism sector.
Hilton? It has over 2,000 rooms in San Diego. It is publicly traded. It earned $740 million of profit in the first six months of 2025. It is headquartered in Tysons, Va.
Hyatt? It also has over 2,000 rooms in San Diego. It’s publicly traded. It brought in over $6.6 billion in annual revenue globally in 2024. It is headquartered in Chicago, and managed by the billionaire Pritzker family in Illinois.
Marriott? It has over 1,500 rooms in San Diego. It is publicly traded. Its annual report brags: “We returned over $4.4 billion to our stockholders through a combination of cash dividends and share repurchase in 2024.” It is headquartered in Bethesda, Md.
These corporations don’t live here, raise families here or reinvest their windfalls here. When they publish corporate reports, send out shareholder dividends and buy back stocks, they tell a story of massive success to people who don’t live in San Diego. But council members hear a different story about how hard it is to succeed in the tourism industry. Which is it?
Business for Good was founded precisely because we know that the business community is not a monolith, and many of San Diego’s leading business owners care deeply about the workers who keep our region running.
If there’s one thing we want the City Council to hear as it considers this proposal, it’s this: being pro-business does not mean knee-jerking against any proposal that helps workers. Be pro-business. Be pro-worker. Hold both things at once. It’s possible. If you don’t believe us, stop by a meeting of Business for Good, and see for yourself.
Knab is co-founder of Business for Good, San Diego, and co-chair of its Advocacy Committee.