Connect with us

Business

'I don't trust America.' Trump's tariffs, detentions take a toll on local tourism

Published

on

'I don't trust America.' Trump's tariffs, detentions take a toll on local tourism

On Tuesday, a trickle of visitors traversed the sidewalks of star-studded Hollywood Boulevard, which is usually bustling this time of year with families and students on spring break trips. Parked open-air tour buses and vans were largely empty.

But Jose Ayon, manager at La La Land, a souvenir and gift shop, was not surprised. Foot traffic has struggled to rebound after the pandemic shutdowns and now global tariffs imposed by the Trump administration could make matters worse.

That morning, Ayon said, several vendors that supply mugs, chocolates, plates, magnets and other knickknacks to the store told him that they would hike prices as much as 30%.

“It’s pretty concerning,” said Ayon, who has worked at the store for 10 years. “Everyone in the back is panicking.”

Advertisement

In the face of market turmoil, Trump on Wednesday paused some of the tariffs he had imposed on most countries, while escalating duties on China.

But the twists and turns in the trade war have shaken Wall Street and deepened anxieties among business owners in Los Angeles and nationwide who fear a rise in prices and a disruption in their supply chains.

The fallout for tourism to L.A.

Among the casualties in the ongoing trade hostilities is tourism. Amid news of visa cancellations and deportations, state and local tourism officials are increasingly worried about the potential adverse effects on travel to Los Angeles and California.

“California’s message to all visitors remains the same: You’re welcomed and respected,” Caroline Beteta, president of Visit California, the state’s marketing agency, said in a statement.

Jackie Filla, president of the Hotel Assn. of Los Angeles, said local hoteliers are scrambling to keep foreign visitors coming.

Advertisement

“The way we are perceived globally, is we are blowing up not just our economy but everyone else’s economy,” Filla said. “People don’t think it’s good, they don’t think it’s fair, so why would they go to America?”

The worries are rippling across the local tourism and hospitality industry that employs about 510,000 Angelenos and supports more than 1,000 local businesses, according to the Los Angeles Tourism and Convention Board.

International visitors are crucial to the regional industry because they tend to stay longer and spend more, tourism officials say. Canada and Mexico, which send the most visitors, were hit early on with steep tariffs — some of which remain in place, even after Trump announced Wednesday that he would pause some global tariffs for 90 days.

A Canadian backlash

Canadians, furious over Trump threats to annex their country, are boycotting American products and canceling travel plans south of the border, including scrapping visits to popular winter destinations such as Palm Springs.

That’s especially concerning because Canadians account for a large share of bookings — 770,000 guest nights annually in Los Angeles, Filla said.

Advertisement

The recent two-week detention of a Canadian on a work visa by immigration authorities did not help matters, Filla said. At least one major hotel brand has paused marketing for all of its U.S. properties in reaction to angry comments on its social media accounts, she said.

“How do we attract people from other countries when the tide of media they’re getting is, ‘You may be snatched off the street?’” Filla said. “But we need them to come here, it’s very vital to our economy.”

Aside from fewer visitors, local hotels are bracing for price increases on cleaning products, technical equipment for elevators, golf simulators, spas and other amenities, food imports and a host of other goods because of tariffs, she said.

They are also worried about businesses canceling conferences and cutting travel expenses, and families forgoing vacations because of heightening economic pressures. Hotels that employ unauthorized immigrants also have been rattled by deportation threats.

Adam Burke, president and chief executive of the Los Angeles Tourism and Convention Board, said his organization is “concerned about any factors that could negatively impact perceptions of the U.S. as a preferred travel destination.”

Advertisement

California is the No. 1 travel destination in the U.S., with international visitors spending $26.5 billion last year, a 17.5% increase over 2023, according to Visit California.

That growth is slowing, however. In March, the organization revised its projections for 2025 visitor spending in California to $160 billion, down from $166 billion it had originally. That represents 2.3% annual growth, down from an earlier projection of 6.2%.

The U.S. as a whole is expected to be even more hard hit. Tourism Economics, a Philadelphia-based travel data company, expects international travel to the U.S. to decrease 5% this year, with a 15% decline in travel from Canada.

One bright spot: California is seeing less negative sentiment and a proportionally smaller decline in consideration for travel, according to Visit California, citing data from market research firm YouGov.

Along Hollywood Boulevard on Tuesday afternoon, Canadian tourist Harpreet Kaur, 24, perused shops with her cousins and uncle in tow. Kaur, who lives in Nova Scotia, said Trump’s threats to turn the nation’s northern neighbor into the “51st state” have made people angry.

Advertisement

Kaur was on a two-week trip to see L.A. and visit cousins in Bakersfield.

“I’m not sure what’s going to happen in the future,” she said. “I wanted to see them before anything drastic happens. I don’t trust America, as a tourist.”

Business has been slow all year at Hollywood City Tours, owner Moses Marjanian said. First it was the fires, which caused tourists to cancel their trips because they thought the inferno had reached the Hollywood sign and other major attractions.

“We had a very slow January and February,” he said. “But it’s been carrying on all the way until now. I’m guessing it’s because of the tariffs. Our business is probably down over 30%.”

Marjanian started his company 11 years ago, weathering the pandemic, Hollywood strikes, inflation and other business challenges.

Advertisement

But this is “the worst it’s been,” he said.“We’re giving our tour guides a lot more days off because we’re running less tour buses and they’re not going out full,” he said.

Marjanian believes the decline in bookings is also a result of deportation threats.

“There’s a lot of Hispanic customer base that we have that aren’t out and visiting as much as before,” he said. “Because of the uncertainties they’re facing, they’re probably not spending as much money anymore as they figure out what the future brings.”

Advertisement

Business

In a first for the country, voters in Monterey Park ban data centers

Published

on

In a first for the country, voters in Monterey Park ban data centers

Residents of Monterey Park voted overwhelmingly to ban data centers on election day, making the San Gabriel Valley city the first in the nation to do so by public vote.

As of Wednesday, 86% of votes were in favor of Measure NDC, the city ban, according to the Los Angeles County registrar-recorder/county clerk.

Other cities and towns have passed moratoriums on data centers, as a wave of opposition sweeps the country. But the Monterey Park vote can only be overturned by another ballot measure, making it the most permanent data center ban in a jurisdiction.

Monterey Park’s City Council had already banned data centers by ordinance, after a proposed 247,000-square-foot data center met an outpouring of public anger and concern. The developer withdrew that plan.

Advertisement

That facility would have been less than 500 feet away from the nearest home, and would have used three times the electricity of the entire 60,000-person city. Residents said it would have caused noise and air pollution and driven up electricity rates.

“This ensures long-lasting protections for current and future generations,” Amy Wong, co-founder of the group San Gabriel Valley Progressive Action, said of the vote. “It means that future city councils cannot overturn a data center ban, even if data center developers wanted to spend money to fund pro-data center candidates.”

The measure had no formal opposition. The developer of the proposed facility, investment firm HMC StratCap, said it wouldn’t engage in the ballot fight when it withdrew in March.

The Data Center Coalition, an industry trade group, expressed disappointment in the vote.

“It sends a signal that the area is closed for business, both for data centers and for other significant economic development projects,” state policy director Khara Boender said.

Advertisement

“It deprives local residents of the opportunity to compete for jobs and investment, while also causing the area to relinquish substantial long-term economic investment, high-wage jobs, and critical tax revenue to neighboring areas or other states.”

SGV Progressive Action worked with hyperlocal groups including No Data Center Monterey Park to rally support for the measure.

The group is now focused on stopping data center proposals in the City of Industry and fighting a move by City of Industry, Santa Fe Springs, Vernon and City of Commerce to welcome data centers and other industry with fast-tracked permitting and tax incentives.

City of Industry, in the San Gabriel Valley, and Vernon, south of downtown L.A., are primarily industrial areas, each with around 300 permanent residents. They are employment centers, and tens of thousands of workers commute in daily.

There has been little vocal opposition to data centers among the few residents of these cities. Wong said the protest is primarily coming from the surrounding neighborhoods.

Advertisement

“If a data center gets built in City of Industry, residents across the region would bear the brunt of pollution and increased utility costs,” Wong said, noting that it is surrounded by 16 other cities and unincorporated communities.

Data center proposals have been limited in California compared to Virginia, Texas, Georgia, Illinois and Arizona, which sit at the center of a recent boom in hyperscaler facilities to power artificial intelligence.

California has the third-most data centers in the country, with 300, but high electricity rates, expensive land and regulatory hurdles mean that fewer, and smaller, facilities are currently planned than in other hotspots.

That doesn’t mean opposition hasn’t been fierce. In Coachella and Imperial County, residents are showing up in droves to protest local proposals.

In the San Gabriel Valley, Montebello, El Monte and Baldwin Park have all enacted temporary moratoriums, and Alhambra recently banned data centers as part of a zoning code update.

Advertisement

Wong said she hoped the ballot measure vote would galvanize the opposition. “The vote is a testament to the people power of our region,” she said. “Our region is worth protecting, and we won’t let data centers determine our future.”

Continue Reading

Business

Rent-hike ban to protect fire victims ends despite gouging concerns

Published

on

Rent-hike ban to protect fire victims ends despite gouging concerns

A rule intended to prevent rent gouging in the wake of the Eaton and Palisades fires has lapsed in Los Angeles County, possibly exposing some renters to hikes.

The executive order that blocked rent increases was issued by Gov. Gavin Newsom amid the devastating wildfires last year. Under the order, landlords couldn’t increase rents by more than 10% above their prefire levels.

The rule, which was supposed to be temporary and was repeatedly extended, ended Friday after a vote to extend it again failed to garner enough votes. Supervisor Lindsey Horvath, whose district includes Pacific Palisades, sounded the alarm in a motion to extend price protections that failed to pass at the Board of Supervisors’ May 19 meeting.

“These price gouging protections continue to be necessary as construction and rebuilding continue, and as thousands of people remain displaced,” the motion said. “Families which signed short-term leases could face drastic price increases of 50% or more without further price gouging protection.”

Advertisement

Los Angeles County is home to more than 1 million rental properties, though not all of them needed protection from the new rule. There are already stricter rent increase caps for many residences, depending on the location, type and age of the building. Despite the rent control in the region, the people of Los Angeles pay among the highest rents in the country.

It is uncertain whether renters will face rapidly rising rents now that the protection has lapsed. But some real estate experts and policymakers said there was no need for the temporary rule that was part of the governor’s state of emergency.

Supervisors Kathryn Barger, Janice Hahn and Holly Mitchell abstained from voting on the motion to extend the protection, while Supervisors Hilda Solis and Horvath supported it.

“I abstained because I did not see sufficient evidence to justify extending this emergency ordinance, nor did I see evidence to eliminate it entirely,” Hahn said.

Barger’s office said she supported allowing the protections to sunset while waiting to see whether new information emerged.

Advertisement

“Market data already shows countywide rents are only about 2% above pre-emergency levels and rental inventory has grown,” Barger representative Helen E. Chavez Garcia said. “The Supervisor is also mindful of the burden these ongoing protections place on small property owners throughout the county.”

Mitchell did not immediately respond to a request for comment.

There haven’t been steep rent hikes in neighborhoods within three miles of the Palisades fire, according to a Times analysis of data from Zillow, the property listing company.

In ZIP Codes within three miles of the Palisades fire, rent increased 4.8% from December 2024 to April 2025. In areas around the Eaton fire, which destroyed swaths of Altadena, rent jumped 5.2% in the same period.

In L.A. County, ZIP Codes farther from the fires saw only about a 2% increase.

Advertisement

A landlords representative, Jesus Rojas of the Apartment Owners Assn. of Greater Los Angeles, told the supervisors during public comment at the meeting that the county’s rent-gouging rules have “long outlived the emergency they were intended to address” and are now being “wrongfully used to harm thousands of rental housing providers throughout the county.”

“There is no proof that multifamily rental housing providers are hugely increasing rents for impacted homeowners,” Rojas said.

Indeed, there are strong signs that the property market in the Los Angeles area has at last begun to cool.

L.A. metro-area rent prices recently fell to a four-year low, with the median rent slipping to $2,167 in December.

Meanwhile, condominium sales had their slowest start of the year in decades. Condo sales in Los Angeles have plummeted to a 20-year low, with fewer than 2,000 units sold in January and February — the worst start to the year since 2005.

Advertisement

Newsom defended the price-gouging protections shortly after they went into effect.

“In the days following the Los Angeles firestorms, we worked quickly to protect Los Angeles survivors from any form of exploitation,” he said in February 2025. “The state has the tools in place to not only block price gouging during this emergency, but also to prosecute bad actors.”

The Los Angeles County Department of Consumer and Business Affairs said it received more than 2,000 complaints after the fires, alleging that retailers and landlords were taking advantage of people put in hardship by their losses, and sent out more than 2,000 cease-and-desist letters to businesses and landlords for alleged price gouging, said Morine Merritt, who oversees department investigations into consumer and real estate fraud.

“Close to 90% of the complaints that we received involved allegations of rent increases,” Merritt said in an interview. Now that the fire-related protections have expired, existing laws and “regular market conditions determine price increases for goods and services, including rents,” she said.

Crackdowns on fire-related rent gouging have been rare, said Chelsea Kirk of the activist organization the Rent Brigade, which analyzed L.A. County’s rental market in the year after the fires. It reported 18,360 potential examples of price gouging in listings but said that few lawsuits had been filed by authorities so far.

Advertisement

Last week, Rent Brigade announced what it said was the first private civil lawsuit brought by a family that claimed to be rent-gouged in the aftermath of the wildfires. Plaintiffs Randall and Candy Renick, whose Altadena home was damaged, said they were charged nearly three times the maximum permitted rate for nearly 10 months. They seek restitution of $96,000 plus civil penalties and attorneys’ fees.

The rental market has probably stabilized since the fires, Kirk said, but other families may still be “locked into illegal rents” that they agreed to pay when they were in a rush to find housing after they were displaced.

Continue Reading

Business

Read Nick Bilton’s Letter to Scott Pelley

Published

on

Read Nick Bilton’s Letter to Scott Pelley

Dear Mr. Pelley:

I meant what I said in my letter last week to the 60 Minutes team: joining 60 Minutes is the honor of my career and I am grateful to be working alongside the people who have contributed to the most important television journalism brand this country has ever produced. While I’m new to 60 Minutes, I’ve devoted my career to investigative journalism and storytelling. I started this job excited to collaborate and to benefit from the wisdom and experience of the 60 Minutes veterans, with you among them. For that reason, one of the first things I did in my new role was call you to talk and invite you to dinner. It is a profound disappointment that you rejected that overture and chose ambush instead. Yesterday, you hijacked my first meeting with staff to disparage me, my qualifications, and my intentions with remarkable incivility and contempt. I welcome a diversity of viewpoints and respectful debate among the team, but this was nothing of the sort. Yesterday’s performative display of hostility enacted in front of the staff instead of in a civil, private conversation-demonstrated that you have no interest in contributing to the future success of the show, or approaching my new tenure with a mind open to collaboration and progress. I am here to deliver first-in-class news programming, not to make headlines about newsroom drama. I am eager to work alongside those who share this goal.

Despite yesterday’s misconduct, I had hoped that in sitting down with you today we could find a path forward together. You made clear that you are not interested in such a path.

Your antipathy to the future of the show has come through loud and clear. And I have heard you. I therefore write on behalf of CBS News, Inc. (“CBS”) to inform you that your employment with CBS is terminated for cause effective immediately. Enclosed is your formal termination letter.

Sincerely,

Nick Bilton

Executive Producer, 60 Minutes

Continue Reading
Advertisement

Trending