San Diego approves US$25 minimum wage for tourism workers

San Diego City Council has voted unanimously to raise the minimum wage for specific hospitality and tourism workers from US$17.25 to US$25 per hour by 2030, phased in over several years and starting July 2026, as reported by NBC 7 San Diego. 

The measure will impact hotels with at least 150 guest rooms, accounting for approximately 103 hotels (or 27%) of the city’s total 385 hotels, motels, and bed-and-breakfast businesses. 

Additionally, amusement parks, and event centers will be impacted. 

Venues impacted by the proposal include Petco Park, Pechanga Arena San Diego, the San Diego Convention Center, and Civic Theatre, along with large hotels such as the Manchester Grand Hyatt and Marriott Marquis.

Some entities are exempt from the requirement, which include San Diego State University venues, specifically Viejas Arena and the Cal Coast Credit Union Amphitheatre, because the university is owned by the state of California. The San Diego Zoo is also exempt from the measure, but SeaWorld San Diego is not.

Breakdown of the Increase

Pay increases will be raised by employer type and implemented annually through 2030:

• Event centres: US$21.06 in 2026, US$22 in 2027, US$23 in 2028, US$24 in 2029 and US$25 in 2030.
• Hotels and amusement parks: US$19 in 2026, US$20.50 in 2027, US$22 in 2028, US$23.50 in 2029 and US$25 in 2030.

The phased rollout decision from the council comes after hearing from nearly 100 speakers during public comment. The measure passed unanimously, with eight council members present voting in favor (8-0), while Councilmember Raul Campillo was absent.

Opposition and Support Over Economic Impact

The hike received mixed views, with both support and opposition highlighting different perspectives on how the change would affect workers, businesses, and San Diego’s economy.

Opposition came from business leaders who warned the hike could hurt tourism and push automation.

Chris Cate, president of the San Diego Regional Chamber of Commerce, called it “shortsighted,” arguing it would raise costs for both businesses and families without solving affordability. The San Diego Padres also opposed the plan, with COO Caroline Perry warning it would drive up expenses for fans and nearby businesses.

On the other side, support for the wage increase centered on both personal and community benefits. 

Advocates noted that higher wages would provide workers with greater financial stability, enabling them to afford essentials like rent and groceries, while also increasing their ability to spend locally, which could help sustain small businesses and strengthen the city’s economy.

The city’s Independent Budget Analyst also noted potential benefits for workers but warned of possible economic risks, maintaining a neutral stance overall.

Minimum Wage Background and Cost of Living

The minimum wage within San Diego has been rising since the council adopted the Earned Sick Leave and Minimum Wage Ordinance in 2016, increasing from US$10.50 to its current rate of US$17.25. 

This local rate exceeds California’s US$16.50 hourly rate and is far above the federal US$7.25 per hour minimum.

Despite the increases in the minimum wage, the cost of living in San Diego has also increased. 

A single person working full-time in San Diego County would need to earn US$30.71 per hour to support themselves, according to the Massachusetts Institute of Technology’s Living Wage Calculator. 

The same calculator shows that a household consisting of two adults and one child would need to earn US$49.13 per hour.

Related Content: 

California cities raise minimum wage from July 1 

British Columbia increases its minimum wage to US$17.85

Chicago’s minimum wage to increase amid new labor laws

Bank of America raises minimum wage to US$24 per hour in U.S. Locations