July 25, 2025

Las Vegas Faces Sharp Declines in Hotel Performance

News Summary

Las Vegas is experiencing a significant downturn in hotel performance, with occupancy rates and revenue per available room plummeting amid economic uncertainty. Visitor numbers at Harry Reid International Airport have declined, and analysts attribute this drop to factors such as increasing caution among travelers and reduced international visitation. In response, local hotels are rolling out promotions to draw more visitors. Despite the current challenges, there is cautious optimism for recovery as events are scheduled to attract tourists back to the city.

Las Vegas is facing significant challenges as hotels experience sharp year-over-year performance declines amid growing economic uncertainty. Travel Weekly reports that the city has recorded one of the steepest declines in hotel performance across the United States this summer, impacting overall tourism metrics.

Data shows that passenger totals at Harry Reid International Airport fell almost 3.7% through May, signaling a drop in visitor numbers. In June, hotel occupancy rates plunged 14.9%, marking the steepest monthly decline this year. From June to early July, occupancy dipped further by 16.8% to 66.7%. Additionally, revenue per available room (RevPAR) dropped by 28.7% to $102.75 during the same period.

As a result of Las Vegas’ poor hotel performance, national metrics have also been affected. The overall RevPAR performance for hotels in the U.S. was flat for the week ending July 5. Visitor volume in Las Vegas declined 6.5% year over year, totaling 3.4 million visitors as of May 2025.

Analysts attribute this downturn to multiple factors, notably increased uncertainty and a significant drop in international visitors, especially from Canada. National policies enacted during the Trump administration, including tariff policies, have contributed to economic uncertainty that affects consumer spending on luxury entertainment. While inflation rates remain low, supply chain disruptions and higher consumer prices have put a strain on tourist budgets.

Recently introduced policies, such as a new “visa integrity fee” for foreign tourists, are expected to discourage international travel to the U.S. Furthermore, the passage of the “Big Beautiful Bill” has increased taxes on gambling winnings, impacting both residents and visitors in Las Vegas.

The rising perception of local resorts as overpriced has compounded the issue. Tourists are encountering hidden fees and price hikes that detract from the experience that once characterized Las Vegas as a value destination. Guests are facing a range of new fees, along with less favorable gaming conditions, further diminishing the allure of the city.

In response to these challenges, Las Vegas properties are rolling out promotions to attract more visitors. Some resorts, such as Resorts World Las Vegas, have introduced packages that eliminate resort fees and provide dining credits through early September. Other hotels, like the Sahara Las Vegas and Caesars Entertainment, are also offering discounts and credits to enhance affordability.

Despite the current downward trends, experts express cautious optimism regarding future growth potential, especially with meetings and trade shows scheduled from September 2025 onward. To bolster its outreach efforts, the Las Vegas Convention and Visitors Authority has increased marketing spending by 30% to draw more tourists into the city.

The impact of these developments is evident in the employment sector as well. Employment in Las Vegas’ hospitality sector has dwindled from 305,179 in May 2024 to 298,384 as of February 2025, coinciding with the state’s highest unemployment rate in the country at 5.9%. Moreover, Nevada has seen a decrease in the number of active workers post-pandemic, further straining the local economy.

The ongoing economic headwinds are largely attributed to national policies perceived as harmful to tourism and hospitality in Las Vegas. Nevertheless, there are expectations for improvements over the coming months as stakeholders adapt to the current challenges and work towards revitalizing the tourism sector.

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Additional Resources

Author: STAFF HERE LAS VEGAS WRITER

LAS VEGAS STAFF WRITER The LAS VEGAS STAFF WRITER represents the experienced team at HERELasVegas.com, your go-to source for actionable local news and information in Las Vegas, Clark County, and beyond. Specializing in "news you can use," we cover essential topics like product reviews for personal and business needs, local business directories, politics, real estate trends, neighborhood insights, and state news affecting the area—with deep expertise drawn from years of dedicated reporting and strong community input, including local press releases and business updates. We deliver top reporting on high-value events such as Electric Daisy Carnival, World Series of Poker, and Consumer Electronics Show. Our coverage extends to key organizations like the Las Vegas Chamber of Commerce and Three Square Food Bank, plus leading businesses in hospitality and entertainment that power the local economy such as MGM Resorts International, Caesars Entertainment, and Las Vegas Sands. As part of the broader HERE network, we provide comprehensive, credible insights into Nevada's dynamic landscape.

STAFF HERE LAS VEGAS WRITER

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