Los Angeles is gearing up to host the 2028 Olympic Games — but a new report warns the city may not have enough beds for the tidal wave of tourists headed to watch the world’s best athletes compete.
Lodging demand for the LA28 Games will blow past available hotel capacity in Los Angeles and Orange counties on the busiest competition days, potentially leaving as many as 320,000 estimated visitors scrambling for a place to stay, according to a report from Deloitte.
The analysis found that on 13 of the 19 competition days, there might be a lodging shortage for spectators — and offers a potential fix. The report suggests expanding short-term rental options, think Airbnb-style stays, could soak up most of the overflow.
The games are expected to draw a jaw-dropping 15 million visitors, unleashing one of the biggest tourism surges Southern California has ever seen.
If short-term rental supply were doubled, the report argues, the region could house an additional 282,000 visitors on peak days — covering a whopping 87% of the projected shortfall.
That surge would translate into a projected $488 million in direct economic activity, including 5,300 jobs and $120 million in combined tax revenue, according to Deloitte.
In just the first 24 hours of registration for the LA28 Ticket Draw, organizers racked up more than 1.5 million sign-ups — an impressive show of interest more than two years before the cauldron is even lit.
“Excitement for the LA28 Olympics is already high and now the numbers are clear: demand for lodging could exceed capacity, and tourists need more options for a place to stay,” said Airbnb Senior Public Policy Manager Justin Wesson.
“Short-term rentals are a simple and sustainable solution to not only accommodate more visitors in the L.A. area, but also generate millions in direct economic activity that would benefit the city, counties, and local communities.”
Backers argue that loosening short-term rental rules — even temporarily — would not only prevent sticker shock and price gouging during the Games, but also spread Olympic spending beyond major hotel hubs to neighborhood restaurants, shops and small businesses.
“The LA28 Games are expected to bring millions of visitors to LA and will create one of the largest tourism surges and economic opportunities we’ve ever experienced,” said Stuart Waldman, President of Valley Industry and Commerce Association.
“Reasonable short-term rental rules are the practical solution to expand LA’s accommodation capacity without the cost of new construction.”