Las Vegas Tourism Faces Significant Decline Amid Trade Tensions

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The Las Vegas Strip is seeing a decline in tourists due to rising trade tensions.

News Summary

Las Vegas is experiencing a notable downturn in tourism, particularly from Canadian visitors, due to escalating trade tensions between the U.S. and Canada. A 9% decrease in international visitors has raised concerns for the local economy, which heavily relies on Canadian tourists. With Canada’s new tech tax and ongoing political issues, many Canadians are reconsidering their travel plans, impacting Las Vegas’s recovery from previous downturns. Local economists warn that continued trade frictions could lead to a substantial loss in tourism revenue and employment.

Las Vegas – Tourism in Las Vegas is facing a significant downturn as trade tensions between the United States and Canada escalate, leading to a reported 9% decrease in international visitors this year. The Canadian tourist market, which has historically been the largest demographic of international visitors to Las Vegas, is feeling the brunt of these geopolitical issues.

Recently, President Donald Trump announced the cessation of trade talks with Canada. This announcement came on the heels of Canada implementing a tax on technology companies, which took effect on Monday. As a result, many Canadian tourists are expressing uncertainty about their travel plans to the U.S., including Las Vegas. Reports from Harry Reid International Airport illustrate this shift in sentiment, with Canadian arrivals notably reduced.

Data indicates that air travel from Canada to the U.S. experienced a 13% decline in February 2025 compared to the same month the previous year, with predictions suggesting a potential 15% decrease over the entire year. Canadian visitors accounted for approximately 30% of all international arrivals to Las Vegas in 2023. On average, these tourists spent $1,189 per trip and stayed 5.5 days, highlighting their significant economic impact on the local tourism industry.

The Las Vegas Convention and Visitors Authority has expressed concern about the ongoing decrease in visitors linked to the current political climate. Local economist Mike PeQueen emphasized that Canada is the largest source of international visitors to Las Vegas. As the city’s tourism sector was beginning to recover from the COVID-19 pandemic, the recent escalation in trade tensions threatens that recovery.

As Canadian visitors report feelings of discomfort and hesitation regarding travel to the U.S., many have noted a stark difference at Canadian airports. A traveler reported a remarkable drop in traffic at Edmonton airport’s U.S. side, a reflection of the current sentiment impacting the choice to visit Las Vegas.

Should the trade tensions persist, experts warn that the economic repercussions could be profound. A 10% reduction in Canadian travelers to Las Vegas could result in a loss of 2 million visits and $2.1 billion in spending, potentially leading to the loss of approximately 14,000 jobs that are supported by Canadian tourism.

In response to the decline in Canadian visitors, some of Southern Nevada’s major employers are considering promotions aimed at attracting this important market. Despite the existing trade frictions, there is hope that Las Vegas’s attractive warm weather may lure more Canadians, many of whom remain fond of the city’s offerings.

Adding to the complexities of this situation is the stance of Canadian Prime Minister Justin Trudeau, who has encouraged citizens to explore domestic travel rather than the U.S. This shift in focus echoes broader sentiment within Canada, where many residents express national pride and advocate for a potential boycott of U.S. destinations, including Las Vegas, in reaction to perceived disrespect from U.S. policies.

Polls indicate an increasing number of Canadians are opting to forgo trips to the U.S. as potential retaliatory measures, with dissatisfaction towards U.S. policies growing. As trade discussions continue and proposed tariffs loom, the U.S. Travel Association warns that these factors could further diminish visitation and spending in tourism-dependent states like Nevada.

In summary, Las Vegas is experiencing a pronounced decline in tourism attributed to rising trade tensions with Canada. The ramifications of this trade dispute are significant, affecting not only visitor numbers but also the broader economic landscape of the city and its reliance on international tourism for sustained growth.