Thousands of hospitality and tourism workers in San Diego will soon have more money in their pockets as the city’s new hospitality minimum wage increase takes effect.

The City Council approved the Hospitality Minimum Wage Ordinance last September. The new law applies to amusement parks, hotels with at least 150 rooms and large event venues, including the Civic Theatre, Pechanga Arena, Petco Park and the San Diego Convention Center.

The ordinance will increase the minimum wage incrementally over the next four years, reaching $25 an hour by 2030. The previous minimum wage was $17.25 per hour.

Effective DateHotels & Amusement ParksEvent CentersJuly 1, 2026$19.00 per hour$21.06 per hourJuly 1, 2027$20.50 per hour$22.00 per hourJuly 1, 2028$22.00 per hour$23.00 per hourJuly 1, 2029$23.50 per hour$24.00 per hourJuly 1, 2030$25.00 per hour$25.00 per hourJuly 1, 2031Adjusted annually based on the prior year’s increase in the cost of living (CPI)Adjusted annually based on the prior year’s increase in the cost of living (CPI)A graph by the City of San Diego shows the Hospitality Minimum Wage Rates.

Supporters say the increase is needed to help workers keep up with San Diego’s high cost of living.

Audio-visual technician Andi Guillen said many workers have struggled to make ends meet.

“It should never have to come to the point where a technician has to pick up 100 shifts at 100 different properties and donate plasma just to have gas money.”

Some business leaders, however, say the higher labor costs could be passed along to customers through higher prices.

“Just going to be in this vicious cycle where we’re going to keep many increased wages, but costs are continuing to still go up,” said Chris Cate, the President and CEO of the San Diego Regional Chamber of Commerce.

The Chamber of Commerce argues the new law does nothing to address San Diego’s affordability crisis and says it hopes the city will do more to address the region’s cost of living.

This story was originally reported for broadcast by NBC San Diego. AI tools helped convert the story to a digital article, and an NBC San Diego journalist edited the article for publication.