businesses

The surge in soccer fans this summer was bad for some businesses in Los Angeles.

World Cup host cities had lofty economic expectations for the summer tournament. But the city’s hotels only got a 1% bump in occupancy, according to a report published this week by Hospitality Education and Research Organization, a project of the Hotel Assn. of Los Angeles.

Seventy-two percent of surveyed hotels said the tournament hurt their 2026 finances, and 48% called the impact “extremely negative.” Just 2% said it met projections.

Downtown occupancy reached 66% in June, down from 71% a year earlier, the report says. Room nights fell between 10% and 12%.

Hotel guests at the Metropole restaurant just opposite the main lobby at the Hotel Indigo in downtown Los Angeles in May.

(Genaro Molina / Los Angeles Times)

Ahead of World Cup tournaments, FIFA holds large blocks of rooms. But FIFA canceled or released up to 70% of the hotel room blocks it had reserved in host cities, including Los Angeles.

“We understood that we were maybe going to be disappointed with attendance going into the World Cup simply by the volume of cancellations that came out of the room block agreement,” said Jackie Filla, president and CEO of the Hotel Assn. of Los Angeles.

The disappointing turnout led to staff reductions. Of the hotels surveyed 82% reduced seasonal staff and more than six in 10 reported reducing employee shifts, scheduled hours, or permanent staff.

Hotels did raise prices, with the average daily rate hitting $228, the highest of any comparable L.A. event in three years. But occupancy was 71%, well below the 83% recorded during Taylor Swift’s Eras Tour.

A visitor walks in the lobby of the Hotel Indigo in downtown Los Angeles.

(Genaro Molina / Los Angeles Times)

The survey drew 58 responses from 210 hotels, and the analysis was done by travel-data firm Rove using CoStar and AirDNA data. International visitors were also scarce, with Los Angeles welcoming 700,000 international arrivals in June and July — roughly 80,000 visitors below 2024 levels for the same period, the report says.

“We particularly didn’t see a lot of foreign visitors and that’s something that was disappointing,” Filla said. “Foreign visitors do spend three times the amount of money as the average domestic traveler.”

Short-term rentals, meanwhile, gained. Their demand rose 23% and revenue 21% versus July 2024, while hotel revenue fell 3.3%. Airbnb, the tournament’s official fan accommodation, offered new hosts $750 incentives.

The city is currently weighing a temporary proposal to ease its short-term rental rules through the end of 2028 to accommodate tourists. “That will really, truly undercut the business of hotels,” Filla added. “We saw some of that with the World Cup.”

The worry is carrying over to the Olympic Games, set to be hosted in Los Angeles in 2028. Six in 10 surveyed hoteliers expect an Olympic rental surge to hurt their bookings and rates, the report says.

The World Cup “gave us false hope to recover from a negative year,” one Los Angeles hotelier said, according to the report. “I also feel [the] same thing will probably happen for [the] Super Bowl and Olympics.”

When Brandon Hurst first decided to sell his plants on TikTok Live in 2023, the 32-year-old Sylmar resident didn’t know what to expect. He said he thought he could sell at least 30 plants, but instead sold 250.

Now, three years later, the internet creator, who goes by Brandon the Plant Guy, sells up to 5,000 plants a week, works out of a 3,000-square-foot greenhouse in Sylmar and has a staff of 13. He credits much of this success to the exposure he’s received on TikTok.

“I’d be out of business if it wasn’t for TikTok,” said Hurst. “I would have ended the business and gone back to working the desk job that I was working prior. I was already on that path, that was where we were headed. And then TikTok really did turn that around.”

Hurst is one of the 920,000 California-based businesses using the social media platform to reach new customers and grow their brands, according to new data from consulting firm PF Global.

In 2025, TikTok helped generate $12 billion in advertising and merchandise sales for those businesses and supported 52,000 jobs in the state, said the PF Global report, which was commissioned by TikTok.

Nationwide, economic activity on TikTok last year helped contribute $81 billion to some 8.5 million U.S. businesses, the report said.

The surge in activity reflects a growing trend toward online commerce, as more small businesses and consumers turn to social media platforms like TikTok to buy and sell goods.

“We enable American culture, American creators, American businesses, to reach an audience around the world,” said Nicole Mason, TikTok’s head of U.S. public policy, said during a presentation on Wednesday morning.

The new report comes as TikTok is increasingly eager to tout its economic impact as a newly formed U.S. joint venture. In January, the company was taken over by three managing investors: Silver Lake, Oracle and Emirati investment firm MGX, each holding 15%, with ByteDance retaining 19.9% of investments. This transition came after TikTok’s Chinese parent company, ByteDance, was under pressure to divest its ownership in the app’s U.S. operations or face a nationwide ban, due to security concerns.

Last month, TikTok also settled a $400-million lawsuit from the U.S. Department of Justice, ending a 2024 lawsuit alleging the company violated federal children’s privacy laws.

TikTok, which operates its U.S. headquarters in Culver City, where it employs several hundred workers, is mostly known for its viral, short-form vertical videos. But, over the years, the platform has become a hub of curated viral content and a central part of many businesses’ marketing strategies.

The app also has features like TikTok Live, where businesses can host live shopping events, and TikTok Shop, which serves as a direct-to-consumer online marketplace.

For its study, PF Global surveyed more than 11,000 adults in the U.S. and 5,000 businesses. The firm also conducted five case studies with U.S. small businesses and TikTok creators and interviewed over 600 people around the country. The data set combined that survey data with government statistics, industry research and TikTok’s own internal data.

PF Global recently published a similar economic report for the U.K. and is working on reports for 10 other European countries with TikTok.

Neil Ross, a partner at PF Global, said a common global theme is that TikTok users are more likely to see something on the platform and go out and do it.

“People around the world are using it as a kind of digital front door to work out where to go, what to shop, what experiences to have,” Ross said.

The U.S. report states that 27 million Americans “visited an independent shop, cafe or restaurant for the first time after seeing it on the platform.”

The app’s roots date to 2014, when an app called Musical.ly was launched in Shanghai. In 2016, Chinese tech company ByteDance launched a similar platform in China called Douyin.

As the apps grew in popularity, ByteDance picked up on their potential. It purchased Musical.ly in 2017 and combined all these platforms into one, named TikTok. Over the next few years, the app began its rapid ascent, hooking in users with a curated algorithm and viral trends. Today, 200 million Americans use TikTok every month, according to PF Global.

“On a daily basis, TikTok powers real economic impact across the United States, helping entrepreneurs grow their businesses, reach new customers, and create jobs across the country,” said Adam Presser, TikTok’s chief executive in a statement.