September 3, 2025

Decline in Las Vegas Tourism Raises Concerns for Local Economy

News Summary

Las Vegas is facing a notable drop in tourism, with an 11.3% decline in visitors and increasing complaints about rising costs. Despite new hotels opening, hotel occupancy rates fell by 6.5%, and dining expenses have led to visitor dissatisfaction. Local business owners and officials express concern over the future as both hotel and airport traffic show significant decreases.

Las Vegas is experiencing a significant decline in tourism as rising costs and visitor complaints impact its appeal as a travel destination. In June 2025, the number of visitors dropped by 11.3% compared to the previous year, with only 3.1 million tourists visiting the city. This trend has raised concerns among local business owners and city officials about the future of tourism in the area.

The recent opening of two new hotels, the AC Hotel by Marriott and Element by Westin, aims to boost the local hospitality scene. This dual-branded property is the largest of its kind in downtown Las Vegas, featuring a total of 441 guest rooms — 322 in the AC Hotel and 119 in Element by Westin. The five-story hotel includes over 18,000 square feet of meeting space, dining options, seven entertainment suites, an outdoor pool, and a large terrace. Las Vegas Mayor Shelley Berkley praised the development, highlighting its modern design and non-smoking environment, which offers a serene alternative to the traditional gaming atmosphere.

Despite the introduction of new accommodations, tourism statistics show worrisome figures. Hotel occupancy rates decreased by 6.5%, and the average daily room rate dropped to $163.64. Visitors have expressed dissatisfaction over additional hotel fees that can total up to several hundred dollars, compounding their concerns about rising costs in the area. The decline in visitors has also been reflected in airport traffic, with nearly 300,000 fewer passengers recorded at Harry Reid International Airport in July 2025, marking a 5.7% drop.

The hospitality sector on the Las Vegas Strip has been particularly affected, with over 22.6 million visitors recorded by July 2025, down 2 million from the year before, resulting in an 8% decline in foot traffic. Analysts predict a further nearly 2% decrease in visitation during the upcoming Labor Day weekend. Many long-time visitors report that the rising costs—especially with regard to food and accommodations—are steering them away from the Strip. In fact, gaming revenue at Strip resorts has decreased in four out of the last seven months, confirming ongoing financial challenges for the industry.

Visitors have specifically complained about escalating dining expenses, sharing experiences of unexpectedly high bills, such as $425 for a dinner at Hell’s Kitchen. Despite these challenges, non-Strip casinos and downtown properties are performing relatively well, with average room rates remaining below $100 and experiencing slight revenue increases.

One notable change includes the upcoming farewell event for the Golden Gate casino’s signature dancing dealers, which reflects shifting visitor preferences towards electronic gaming. Additionally, the American Gaming Association forecasts that $30 billion will be wagered on the NFL season, demonstrating ongoing potential for betting revenue.

Meanwhile, the gaming industry is seeing expansion beyond Las Vegas. Acres Manufacturing Co. recently ventured into the historical horse-racing market in Alabama, signifying growth opportunities outside of the Nevada region. In a contrasting scenario, Macao is witnessing remarkable improvements in gaming revenue, showing triple-digit percentage increases, which highlights the competitive landscape for tourism and gaming.

Despite the economic challenges facing the city, Las Vegas still positions itself as a value destination, showcasing diverse options for visitors. However, the combination of escalating prices and negative feedback may hinder its reputation if changes are not made to address these concerns and adapt to shifting traveler preferences.

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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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