Decline in Tourism Hits Las Vegas Economy Hard

Empty Las Vegas Strip reflecting the decline in tourism

News Summary

Las Vegas faces significant challenges as tourism plummets, with an 11% drop in visitors compared to the previous year. The decline is affecting hospitality, gaming, and conventions, causing local service workers to struggle with reduced hours and income. Hotel occupancy rates dropped by 6.5%, while convention attendance fell by 10.7%. Despite a slight increase in gaming revenue, the overall economic impact is severe, prompting local businesses to launch promotional campaigns to attract visitors and efforts to revitalize the tourism sector.

Las Vegas experienced a significant decline in tourism in June 2025, with visitor numbers dropping by 11% compared to the same month in 2024. This downturn is substantially impacting the Las Vegas Convention and Visitors Authority (LVCVA) and various tourism-dependent industries throughout the state, particularly affecting sectors such as hospitality, gaming, and conventions. Local service workers, reliant on tips for their income, are experiencing the brunt of these changes, as many find themselves facing reduced shifts and understaffing in the food service and accommodation sectors.

Hotel occupancy rates in Las Vegas saw a 6.5 percentage points decrease in June 2025, and revenue generated per available hotel room decreased by nearly 14%. This signals not only fewer bookings but also reduced spending from the visitors who did come. Convention attendance fell by 10.7%, which indicates weak demand for both business and leisure travel. While there was a slight uptick in gaming revenue in Clark County of 3.5%, this increase is largely viewed as a shift towards gaming expenses at the expense of other tourism-related services.

The overall decline in tourism has left Southern Nevada, and Las Vegas in particular, in a precarious economic state. Despite a small improvement in Nevada’s unemployment rate from 5.4% to 5.3% in August 2025, this change stems more from a reduction in the labor force than from new job growth, as the state lost approximately 6,000 private sector jobs within the month. Job cuts have predominantly affected the construction and accommodation and food services sectors.

Employees at significant resorts, including Caesars Palace, report struggling to secure enough hours for stable income due to the drop in tourism. Experts cite global economic uncertainty as a reason for caution among potential travelers, leading many to favor smaller cities and outdoor destinations over Las Vegas. Additionally, ongoing travel restrictions related to the post-pandemic recovery and lingering health concerns continue to hinder international tourism.

Las Vegas is also facing heightened competition from other entertainment hubs like California and Florida, which offer similar attractions at lower prices. Of particular note is the downturn in tourism from Canada, which has traditionally contributed significantly to Las Vegas’s economy. Canadians made up the largest segment of international visitors to the city, contributing approximately $3.6 billion to Southern Nevada’s economy in 2024 and supporting over 43,000 jobs. In June, this decline was underscored by a 33% decrease in Air Canada passenger numbers and a striking 62% drop from Flair Airlines.

Additional factors impacting visitor numbers include rising costs throughout Las Vegas, such as exorbitant resort fees and parking charges, leading to criticism that the city is losing its attractiveness to visitors. Concerns have been voiced by Las Vegas Mayor Shelley Berkley regarding the sharp decline in tourism and insufficient international visitation.

In response to this downturn, several Las Vegas resorts are implementing promotional campaigns, including significant discounts, to attract visitors. An example is the “Fabulous 5-Day Sale,” featuring considerable deals across multiple attractions. As the local economy continues to feel the effects of reduced tourism, businesses are experiencing diminished revenues and challenges in hiring and retaining staff.

Looking ahead, efforts are being made to revitalize tourism in the region, with plans for infrastructure projects and events like the Formula 1 Grand Prix aimed at drawing visitors back to Las Vegas. Despite the challenges, there is an industry-wide hope that these initiatives will pave the way for a resurgence in tourism in the near future.

Deeper Dive: News & Info About This Topic

HERE Resources

Las Vegas Gas Prices Projected to Spike After Refinery Explosion
Denny Hamlin Secures Championship Spot at South Point 400
Raiders’ Relocation Transforms Las Vegas into Sports Hub
Las Vegas Faces Growing Dispute Over Short-Term Rentals
Las Vegas High Wildcats Secure Victory Led by Tanner Vibabul
Laughlin Surges in Popularity as Affordable Alternative to Las Vegas
Rossi Ralenkotter, Former LVCVA Leader, Passes Away
Las Vegas Faces Flooding and Flight Disruptions from Priscilla
Las Vegas Job Market Stagnates Amid Tourism Decline
Filipino Town Designated as Clark County Cultural District

Additional Resources

STAFF HERE LAS VEGAS WRITER
Author: STAFF HERE LAS VEGAS 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.

Advertising Opportunity:

Stay Connected

More Updates

Would You Like To Add Your Business?

Sign Up Now and get your local business listed!