Las Vegas Tourism Faces Decline Amid Economic Challenges

The Las Vegas Strip, known for its vibrant atmosphere and entertainment options.

News Summary

Las Vegas’s tourism sector is experiencing significant challenges, with a decline in visitor numbers for the fifth consecutive month. In May 2025, the city attracted over 3.41 million visitors, a 6.5% drop compared to the previous year. Contributing factors include economic uncertainty, reduced consumer confidence, and the effects of rising costs. Although convention attendance increased, overall travel trends showed a decline, raising concerns for local businesses in the tourism-driven economy. Analysts remain cautiously optimistic for recovery in the future.

Las Vegas

Las Vegas is facing significant challenges in its tourism sector, with visitor numbers declining for the fifth consecutive month. In May 2025, the city welcomed over 3.41 million visitors, representing a drop of nearly a quarter-million compared to over 3.65 million visitors in May 2024, marking a decline of 6.5%. This downturn is largely attributed to ongoing economic uncertainty impacting consumer confidence.

The Las Vegas Convention and Visitors Authority (LVCVA) has cited “headwinds” from various economic factors, including the lingering effects of former President Donald Trump’s trade war that raised tariffs on several countries. As a result, many potential visitors are wary, leading to decreased levels of travel and spending in the city.

The current situation has transformed hotel and gaming revenues in Las Vegas. Downtown Las Vegas gaming revenue declined by over 11% compared to the previous year. Hotel occupancy rates in this area dropped by 1.3% compared to May 2024, with overall hotel occupancy rates reported at 83%, down from 86.1%. Furthermore, the average daily hotel room rate decreased from nearly $125 in 2024 to approximately $109.39 in 2025.

On the renowned Las Vegas Strip, occupancy rates fell from 88.5% to 85.3% during the same period, despite a stable average daily room rate decline of less than $3. The revenue generated from gaming on the Strip decreased by 4%, with baccarat wins specifically seeing a 10% drop, while total casino wins—excluding baccarat—fell by 3%.

Meanwhile, while convention attendance saw a notable spike with over 511,000 attendees in May 2025, representing an almost 11% increase from the previous year’s nearly 462,000 attendees, the overall travel trends did show a decline. Travel by plane fell by nearly 4%, and there was a similar decrease observed in car travel.

Traffic on major highways experienced only a 0.7% decrease, but travel via Interstate 15 across the Nevada-California border dropped by 5%. Notably, international travel at Harry Reid International Airport dipped by nearly 9% from May 2024, while domestic travel lagged by almost 4%.

The ongoing economic uncertainty, coupled with rising costs—including increased resort and hotel fees—has also made potential visitors hesitant. Local businesses have also felt the impact, with some restaurants, such as Naked City Pizza, reporting significant drops in orders, indicating a decrease in foot traffic from tourists.

Although analysts had anticipated some downturn, the extent of the decline has been substantial. Despite the slowdown, local casinos have managed to perform relatively well compared to the overall market, remaining flat year-over-year. Weekend occupancy rates stood at 89.9%, down from 93.4%, while midweek occupancy saw a dip to 79.3% from 82.5%.

Some experts maintain cautious optimism for the future, suggesting that the anticipated arrival of new professional sports franchises could stimulate tourism. While the current outlook for the summer months appears weak, there are hopes for a return to growth by the fourth quarter of the year, aiming to rejuvenate Las Vegas’ iconic tourism-driven economy.