News Summary
Las Vegas is experiencing a troubling decline in tourism, with a significant drop in air travel at Harry Reid International Airport and falling hotel revenues. Reports indicate both domestic and international travel numbers falling sharply, leading to reduced occupancy rates and lower average hotel room prices. The hospitality industry is feeling the pinch as rising costs discourage visitors. Local businesses are closing or laying off employees, and industry experts are raising alarms over the implications for the economy. A town hall discussion is scheduled to address these pressing tourism challenges.
Las Vegas is witnessing a significant decline in tourism, which is raising alarms among industry stakeholders. Reports indicate a steady decrease in air travel to the city, with Harry Reid International Airport experiencing six consecutive months of declining passenger traffic.
In May 2025, fewer than five million passengers traveled through the airport, which is a 3.9% decrease compared to the same month the previous year. The downturn is particularly evident in international travel. Air Canada has seen a 21.7% drop in passenger numbers, while WestJet reported an even steeper decline of 34.6%. Domestic air travel also faced setbacks, with Southwest Airlines reporting a slight decrease of 0.3% and Spirit Airlines suffering a significant plunge of 42.4% due to ongoing financial struggles.
This decline in tourist numbers has resulted in a decrease in hotel revenues across the city, highlighted by Las Vegas Strip hotels reporting an occupancy rate of 85.3% in May 2025—down 3.2% from previous figures. Furthermore, the average hotel room rates dropped from $198.20 in May to $163.64 in June 2025, marking a substantial 11.3% decrease compared to the same month last year.
Local business operators are concerned, as rising costs at hotels and restaurants deter potential visitors. The Bellagio Hotel recently faced criticism for its pricing strategies, notably charging an additional $25 for room service meals when served on plates. Meanwhile, some establishments, including local businesses like the Poker Palace in North Las Vegas, are being forced to shut down, leading to announced layoffs.
Experts suggest that the declining tourism can be attributed to a combination of high prices, inflation, and additional fees. These factors have altered perceptions of Las Vegas, moving it away from its image as a luxury destination. The trend continued into July 2025, with Harry Reid International Airport reporting 4.8 million passengers, marking a 5.7% decrease from July 2024. Domestic passenger numbers fell by 5.9% to 4.4 million, while international visitors decreased by 3.8%, totaling 279,726 passengers.
Canadian travel is proving to be a particular concern. During this downturn, WestJet reported a decrease of 33.6%, and Air Canada experienced a 24.5% drop in passenger counts. Overall, the first half of 2025 saw total passenger traffic decline by 4.4% to 32.4 million, with domestic travel down 4.6%.
While larger shows continue to draw audiences, smaller productions face challenges as attendance is projected to decline by 10-20%. New entertainment projects, including a daytime Bob Marley show at Mandalay Bay, are reportedly on hold amid the current tourism slump.
To address the implications of these trends, a town hall discussion is scheduled to take place, focusing on the impacts of declining tourism. Anticipated visitor numbers will also be shared with stakeholders following the conversation.
The ongoing challenges faced by Las Vegas tourism impact not only the travel sector but the economy as a whole, making the situation critical for local businesses and residents who rely on tourism for their livelihoods.
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Additional Resources
- News 3 LV: Las Vegas Tourism Slump Insights
- Wikipedia: Tourism in Las Vegas
- Hindustan Times: Declines in Las Vegas Tourism
- Google Search: Las Vegas tourism decline
- Review Journal: Drop in Passenger Counts
- Encyclopedia Britannica: Las Vegas
- News 3 LV: Smaller Shows Face Threat
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.
