Business
Tourists love Los Angeles. Could the fires change that?
Travelers flying into Los Angeles last weekend were greeted by an apocalyptic sight: billowing clouds of smoke and the red-orange glow of flames against the glittering expanse of city lights.
The stark panorama, and shocking, ubiquitous video of the wildfires, were at sharp odds with images of sun-kissed beaches and glamorous Hollywood that L.A. relies on to draw the flocks of tourists who pump billions of dollars into the local economy each year.
As firefighters begin to bring under control the blazes that laid ruin to Pacific Palisades, parts of Malibu, and the hillside town of Altadena, tourism officials are looking for signs of what short- and long-term toll the disaster may take on L.A.’s prowess as a tourism destination.
“We’re very nervous,” said Jackie Filla, president and CEO of the Hotel Assn. of Los Angeles.
“The first-blush look is obviously there’s a precipitous drop off in shorter-term reservations — people who were supposed to be here this week and next week. We’re seeing some long-term drop-off as well — not as much, but it’s certainly a trend we’re concerned about.”
By some measures, the fires struck as tourism in L.A. finally had recovered fully from the blow dealt by COVID-19. In 2023, the last full year for which statistics are available, Los Angeles tallied $40.4 billion in total tourism revenue, a record. That included 49.1 million visitors, a 3% dip from its 2019 pre-pandemic high.
Filla noted that no L.A County hotels or major tourist draws have been damaged in the fires and major conferences and conventions — a critical component of the tourism industry — are scheduled to go on as planned. The lineup includes the Society of Thoracic Surgeons, whose leadership voted Wednesday night to go ahead with their annual meeting later this month in downtown L.A. and to donate $100,000 to relief efforts.
And another major event, the Grammy Awards, are still scheduled for Feb. 2 in downtown’s Crypto.com Arena.
In normal times, organizers and attendees at these meetings and awards shows would book rooms without hesitation. However, with tens of thousands of people now displaced by the fires, the equation has become more complicated. “We’re very closely monitoring our conventions and conferences,” Filla said, because “everybody is concerned about not taking rooms away from the evacuees, but we have the capacity to do both.”
Occupancy in Los Angeles hotels, which typically hits a low point in January, jumped from 59.3% to 65% as the Palisades and Eaton fires raged in the week that ended Jan. 11 “due to displacement demand from the fires,” lodging industry analyst CoStar found. The biggest surge came over the first three days of the blazes, when average daily rates in the area’s luxury hotels jumped by 22.7% over last year — a rise that may have been driven by evacuees moving into high-priced suites during what is normally a slow time, the company’s senior director of analytics Isaac Collazo said.
The city of Los Angeles includes about 44,000 hotel rooms; the county, roughly 100,000. L.A. County Sheriff Robert Luna said Thursday that about 88,000 people were under evacuation orders.
It remains to be seen whether the region’s recovery will be more like the New Orleans following Hurricane Katrina in 2005, Napa Valley’s rebound after a major wildfire in 2017 or Maui’s ongoing recovery effort since destructive wildfires in 2023.
In the aftermath of Katrina, travel to New Orleans fell to less than half its former level, then gradually recovered. It wasn’t until 2016 that the number of visitors to the city returned to pre-Katrina levels.
Napa and Sonoma counties, by contrast, bounced back relatively quickly after fires blackened more than 110,000 acres and killed 24 people in fall 2017. The fires left most vineyards and tourism infrastructure undamaged and by early 2018 hotel occupancy and revenue were ahead of the year before, according to a local tourism organization, Visit Napa Valley. Local and state officials said the recovery was aided by vigorous marketing, including spending by Visit California, the state’s main marketing organization.
On Maui, where a fire in August 2023 claimed 102 lives and leveled most of Lahaina Town, a major tourist destination, recovery is ongoing. Visitor arrivals in November 2024 remained about 15% below their levels in 2022. Officials there are now pushing hard to bring tourists back following an initial period of mixed messages in which some were calling for travelers to stay away as the community tried to rebuild.
At Visit California, the state’s leading tourism organization, President and CEO Caroline Beteta said in a statement that “we need to make sure travelers understand that their visit helps the community — not hurts — and that the city’s hotels and businesses will be ready to welcome them.”
Beteta acknowledged that “we’re already hearing from restaurants and hotels saying they’re being impacted,” and said her team is at work on a recovery campaign stressing that “everyone, especially California residents, should consider planning a trip to Los Angeles to support its economic recovery.”
Adam Burke, president and CEO of the Los Angeles Tourism & Convention Board, also known as Discover Los Angeles, said, “it’s premature to really understand what the implications are going to be,” but until then, “we’re trying to use our platform to help those who have been directly affected.”
In the longer term, Burke said, he’ll be looking closely at data on web searches for Los Angeles as a destination, international bookings, airport arrivals and hotel occupancy. He noted that in a typical year, hotel tax revenues add more than $300 million to the city’s general fund — money that could helpful fuel recovery efforts.
Despite the devastation of the fire areas, the vast majority of the region’s best-known tourism spots were undamaged by the fires. Though many parks and museums closed because of air quality or other concerns, several have reopened, including Griffith Park, the L.A. Zoo and Autry Museum of the American West on Thursday.
Overall consumer demand typically drops in the aftermath of a natural disaster, since fewer outside visitors to an area will lead to a reduction in leisure, hospitality and entertainment spending, said Raphaelle Gauvin-Coulombe, an assistant professor of economics at Middlebury, who was co-author of a study last year examining satellite data to understand fire activity and its effect on labor markets in counties across the U.S.
Leisure and hospitality is a sector that is particularly important for L.A. County, amounting to about 13.5% of the workforce, much higher than the median across counties, which hovers around 6%, Gauvin-Coulombe said. She did note, however, that destinations with more diverse economies — like that of Los Angeles — tend to be more resilient than those that are heavily dependent on one sector.
The disaster may also force the industry to contend with a shrinking labor force in the region, with fires tending to cause out-migration, she said. A slowing of employment growth can last for three years after a fire, she added.
“When people are traveling, they consider everything,” said Ray Patel, president of the Northeast Los Angeles Hotel Owners Assn. “It’s all perception to the guest. They might go, ‘oh, it’s too many fires.’ ”
It’s an understandable impulse, he said: “We all want to put our heads down at night and make sure we feel safe.”
As Los Angeles looks to stabilize its tourism industry in the wake of the fires, it can rely on an important asset many cities don’t have — its tourism board has staff at seven offices abroad who work with counterparts in Australia, the United Kingdom, India and China.
At a moment when dramatic television images threaten to overshadow the facts of L.A. geography, Burke said, “we’re already working with the travel trade in real time,” aiming to “educate people around the world about why it’s still safe to responsibly travel to Los Angeles.”
Business
Polymarket Bets on Paris Temperature Prompt Investigation After Unusual Spikes
Early in April, Ruben Hallali got an unusual alert on his phone: The evening temperature at Paris Charles de Gaulle International Airport had jumped about 6 degrees Fahrenheit in seconds.
Mr. Hallali, the chief executive of the weather risk company Sereno, had set up notifications for extreme weather swings. Then, nine days later, it happened again.
“It was an isolated jump, at one single station, early in the evening,” said Mr. Hallali, who added that he noticed another strange coincidence about the spikes: The timing was just right for somebody to reap a windfall on the betting site Polymarket.
He wasn’t the only one who sensed a problem. Météo-France, the country’s national meteorological service, filed a complaint last week with the police and local prosecutors, saying it had evidence that a weather sensor at Charles de Gaulle, the country’s largest airport, may have been tampered with.
The temperature swings, experts said, coincided with a period of unusual activity on Polymarket, one of the leading online prediction markets, which allow users to wager on the outcome of virtually anything.
One increasingly popular area is weather betting, where speculators can make real-time wagers on temperature readings, rainfall totals, the number of Atlantic hurricanes in a year and much more — with payouts in the thousands of dollars and higher.
As the stakes rise, so has the temptation to tamper with the instruments used to generate weather readings in hopes of engineering a lucrative outcome. Experts warn that this could have dangerous ripple effects, like degrading the information that underpins safe air travel.
Temperature data is used in a host of calculations at airports, helping determine correct takeoff distance, climb rate and whether crews need to apply frost treatment to planes. It’s crucial to airport safety, Mr. Hallali said.
“The Charles de Gaulle incident is not an isolated curiosity,” Mr. Hallali said. “It is what happens when financial incentives meet fragile data infrastructure.”
On April 6, the temperature reading at Charles de Gaulle jumped from 64 degrees Fahrenheit to 70 degrees at 7 p.m., before slowly falling over the next hour, according to data from Météo-France.
On April 15, the recorded temperature climbed even more sharply, from 61 degrees at 9 p.m. to 72 at 9:30 p.m., then dropping back to 61 a half-hour later.
In both instances, the spikes set the high temperature for the day, the metric on which some Polymarket wagers rest.
Laurent Becler, a spokesman for Météo-France, said the service contacted the police after noticing the discrepancies in temperature data. He declined to comment further on the case, saying it was under investigation.
Mr. Hallali said that after the first instance, experts and commenters on the French weather forum Infoclimat began to search answers. Theories were floated, including user error. But after the second spike, commenters zeroed in on the unusual Polymarket wagers, which totaled nearly $1.4 million over the two days, according to the company’s data.
The sums bet on April 6 and 15 were hundreds of thousands of dollars higher than on typical days this month.
It is not the first time that strange bets on prediction markets have raised accusations of insider trading.
On Thursday, a U.S. Army special forces soldier who helped capture President Nicolás Maduro of Venezuela in January was charged with using classified information to bet on outcomes related to Venezuela, making more than $400,000 on Polymarket. Late last year, another trader on the site made roughly $300,000 betting on last-minute pardons from President Joseph R. Biden Jr. before he left office.
Polymarket did not immediately respond to a request for comment. While the site used to tie some bets to temperature readings at Charles de Gaulle, this week, after Météo-France filed its complaint, the platform began using temperatures taken at another airport near the city, Paris-Le Bourget, according to recent bets on the site.
Representatives for Charles de Gaulle airport declined to comment beyond saying that the case was under investigation. The airport police also declined to comment. The Bobigny Public Prosecutor’s Office, which is handling the case, declined to answer questions about the investigation but said that no complaint had been filed against Polymarket.
As to how the instruments could have been tampered with, a number of theories have been offered online, including by use of a hair dryer or a lighter. Mr. Hallali said that the precision of the spike on April 15 suggested the use of a calibrated portable heating device, although he declined to speculate about what kind.
“Markets are expanding into every domain where an outcome can be observed, measured, and settled,” he said. “As these markets multiply, so does the surface area for manipulation.”
Business
California’s jet fuel stockpile hits two-year low as war strangles oil supplies
As the war in Iran strangles the flow of oil around the globe, California’s jet fuel reservoirs are running low.
The state — which refines much of its own fuel in El Segundo and elsewhere but still relies on crude oil imports — has seen its jet fuel stock decline by more than 25% from last year’s peak to a level not seen since 2023, according to data from the California Energy Commission.
The supply is shrinking as a global shortage is already affecting travelers’ summer plans with canceled flights and higher fares. It could even affect plans for people coming to Los Angeles for the 2026 World Cup, which starts in June, said Mike Duignan, a hospitality expert and professor at Paris 1 Panthéon-Sorbonne University.
“People don’t know exactly how this is going to escalate,” he said. “There’s a huge black cloud over the sea for the World Cup and the travel slump that we’re seeing is all linked to this oil shortage.”
As fuel supplies shrink, flight prices are rising. Airlines are adding baggage surcharges to cover fuel costs. Several routes leaving from smaller California hubs, including Sacramento and Burbank, have already been canceled.
Air Canada has suspended flights for this summer, cutting routes from JFK to Toronto and Montreal.
“Jet fuel prices have doubled since the start of the Iran conflict, affecting some lower profitability routes and flights which now are no longer economically feasible,” the airline said in a statement last week.
Europe had just more than a month’s supply of jet fuel left last week, the International Energy Agency said. In an effort to cut costs, the German airline Lufthansa slashed 20,000 flights from its summer schedule this week.
Without a fresh oil supply flowing through the Strait of Hormuz, the situation is unlikely to improve, experts said. The oil reserves countries and companies have in storage are helping fill shortfalls, but the squeezed supply chain could still wreak economic havoc.
“When there’s a shortage somewhere, everything is affected,” said Alan Fyall, an associate dean of the University of Central Florida Rosen College of Hospitality Management. “Airlines are being cautious, and I would say that is a very wise strategy at the moment.”
California’s jet fuel stock reached its lowest levels in two and a half years at 2.6 million barrels last week, down from a peak of more than 3.5 million barrels last year.
The California Energy Commission, which tracks fuel inventory, said the state’s current jet fuel stock is sill sufficient.
“Current production and inventory levels of jet fuel are within historical ranges,” a spokesperson said. “Although supply is tight, no structural deficit has emerged yet. The present tightness reflects short‑term global market stress. As long as refinery operations remain stable, California is positioned to meet regional jet fuel needs.”
Europe has been affected more directly because it relies on the Middle East for the vast majority of its crude oil and many refined products, experts said. California gets crude oil from the Middle East but also from Canada, Argentina and Guyana.
The state has the capacity to refine around 200,000 barrels of jet fuel per day, most of it from refineries in El Segundo and Richmond.
The amount of crude oil originating in the state has been declining since the early 2000s, as state regulations and drilling costs have led to more imports.
California has become particularly vulnerable to supply-chain shocks like the war in Iran, says Chevron, one of the companies that provides jet fuel in the state.
“The conflict in the Mideast Gulf has exposed the danger of California’s decision to offshore energy production,” said Ross Allen, a Chevron spokesperson. “Taxes, red tape and burdensome regulations cost the state nearly 18% of its refinery capacity in just the past year, and we urge policymakers to protect the remaining manufacturing capacity.”
In 2025, 61% of crude oil supply to California’s refineries came from foreign sources, according to the California Energy Commission. Around 23% came from inside the state, down from 35% five years ago.
The state’s refining capacity has also been declining, said Jesus David, senior vice president of Energy at IIR Energy. The West Coast region’s refining capacity has decreased from 2.9 million to 2.3 million barrels a day since 2019, he said.
“California’s had issues prior to the war,” David said. “Nothing new has been built over the past 30 years, and California has closed a lot of capacity.”
The result is higher prices for both gasoline and jet fuel in the state. Jet fuel at LAX costs close to $15 per gallon this week, compared with almost $10 at Denver International Airport and $11 at Newark International Airport.
Gasoline prices have also been hit hard by the global conflict. Average gas prices in California are close to $6 a gallon, around $2 higher than the national average.
The West Coast is a “fuel island” because it’s not connected by pipelines to the rest of the country, United Airlines chief executive Scott Kirby said in an interview last month. That means oil and refined products have to be brought in by ships.
“Fuel price is more susceptible to supply weakness on the West Coast than anywhere else in the country,” Kirby said.
Some airlines might not survive the turmoil if oil prices don’t level out soon, he said. Spirit Airlines, a budget carrier based in Florida, is reportedly facing imminent liquidation if it isn’t bailed out by the Trump administration.
Business
Nike to Cut 1,400 Jobs as Part of Its Turnaround Plan
Nike is cutting about 1,400 jobs in its operations division, mostly from its technology department, the company said Thursday.
In a note to employees, Venkatesh Alagirisamy, the chief operating officer of Nike, said that management was nearly done reorganizing the business for its turnaround plan, and that the goal was to operate with “more speed, simplicity and precision.”
“This is not a new direction,” Mr. Alagirisamy told employees. “It is the next phase of the work already underway.”
Nike, the world’s largest sportswear company, is trying to recover after missteps led to a prolonged sales slump, in which the brand leaned into lifestyle products and away from performance shoes and apparel. Elliott Hill, the chief executive, has worked to realign the company around sports and speed up product development to create more breakthrough innovations.
In March, Nike told investors that it expected sales to fall this year, with growth in North America offset by poor performance in Asia, where the brand is struggling to rejuvenate sales in China. Executives said at the time that more volatility brought on by the war in the Middle East and rising oil prices might continue to affect its business.
The reorganization has involved cuts across many parts of the organization, including at its headquarters in Beaverton, Ore. Nike slashed some corporate staff last year and eliminated nearly 800 jobs at distribution centers in January.
“You never want to have to go through any sort of layoffs, but to re-center the company, we’re doing some of that,” Mr. Hill said in an interview earlier this year.
Mr. Alagirisamy told employees that Nike was reshaping its technology team and centering employees at its headquarters and a tech center in Bengaluru, India. The layoffs will affect workers across North America, Europe and Asia.
The cuts will also affect staffing in Nike’s factories for Air, the company’s proprietary cushioning system. Employees who work on the supply chain for raw materials will also experience changes as staff is integrated into footwear and apparel teams.
Nike’s Converse brand, which has struggled for years to revive sales, will move some of its engineering resources closer to the factories they support, the company said.
Mr. Alagirisamy said the moves were necessary to optimize Nike’s supply chain, deploy technology faster and bolster relationships with suppliers.
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