Hospitality Industry Feels the Pinch as Workforce and Tourism Decline
A new report from Unite Here, the largest hospitality union in North America, paints a stark picture of an industry under strain. Over the past year, the sector lost 98,000 jobs. Union leadership directly links this downturn to the current administration's stringent immigration enforcement and its broader impact on the nation's appeal to visitors.
"We need immigrant workers. They are an important part of our workforce, my members, my neighbors," said Wade Lüneburg, political director for a Minneapolis local. He described the treatment of workers as "abhorrent," noting that fear of enforcement has kept some authorized employees from their jobs. Earlier this year, sixteen airport workers who had passed federal background checks were detained by immigration authorities.
The consequences extend beyond the workforce. International tourism revenue fell by $1.2 billion, with 2.5 million fewer visitors coming to the U.S. in 2025 even as global travel increased. This decline is felt locally: Minnesota saw a 15% drop in international air travelers, and small businesses in Minneapolis reportedly lost millions in revenue this January.
"The economic ramifications are much further-reaching," said Unite Here President Gwen Mills, citing scenes of enforcement violence and anti-immigrant rhetoric that discourage domestic and foreign travel alike. The slowdown is national: Las Vegas tourism dropped 7.5%, and Washington D.C. saw a record number of restaurant closures.
On the ground, workers feel the change. "You can feel that business has slowed down," said Shaleah Taylor, a guest room attendant in Las Vegas. In Atlantic City, hotel housekeeper Moana Molly said understaffing has worsened as coworkers left and applications dried up.
The Department of Homeland Security defended the policies. Spokesperson Tricia McLaughlin stated, "Removing these criminals from the streets makes communities safer and more welcoming for business owners, customers, and for tourists." A White House spokesperson pointed to domestic unemployment figures, suggesting no shortage of American workers.
Yet for those in the industry, the data reflects a daily reality of thinner crowds, lighter tips, and a pervasive tension that is reshaping hospitality.