Is Las Vegas Facing Its Karma? Sin City Hits Lowest Tourism Season Since Turning Red

A view of the Las Vegas Strip looking southbound from Flamingo Road Thursday, Aug. 22, 2024. Photo by: Steve Marcus

Las Vegas, the glittering hub of entertainment and gaming, is grappling with a troubling trend as tourism has declined for the sixth consecutive month in 2025. According to the Las Vegas Convention and Visitors Authority (LVCVA), visitor numbers dropped by 12% in July compared to the same month last year, with approximately 3.1 million visitors recorded. This marks a significant downturn for a city that welcomed 41.7 million visitors in 2024, a 2.1% increase from the previous year.

The decline, often dubbed the "Trump slump" by local unions and officials, is attributed to a combination of economic pressures and policy changes. International visitor numbers, particularly from Canada and Mexico, have plummeted, with a 13% drop reported in June alone. Canada, Nevada’s largest international market, saw a 55% decrease in air passengers to Las Vegas, while AeroMexico reported a 63% drop from January to February. Stricter U.S. immigration policies and a new $250 visa integrity fee are cited as deterrents for foreign travelers.

Domestic tourism is also faltering, with a 6.5% decrease in visitors and a 4% drop in air traffic at Harry Reid International Airport in the first half of 2025. Traffic on Interstate 15 at the California-Nevada border fell by 4.3%, suggesting fewer visitors from Southern California, which accounts for nearly 30% of Las Vegas’s tourist base. High costs are a major factor, with complaints about exorbitant prices—such as $175 meals and $26 bottles of water—driving budget-conscious travelers to regional casinos or alternative destinations.

Hotel occupancy has taken a hit, dropping to 66.7% in early July, a 15% decline from the previous year, while average daily room rates fell 6.6% to $163.64. Resorts are responding with aggressive promotions, including waived resort fees and free parking at properties like Resorts World and Sahara Las Vegas. Despite the visitor drop, gaming revenue in Clark County rose 3.5% to $1.16 billion in June, indicating that those who do visit are spending more at the tables.

Local workers, particularly in hospitality, are feeling the pinch. Housekeepers and service staff report reduced hours and tips, with some facing layoffs. The Culinary Union, representing 60,000 workers, highlights the impact on its members, many of whom are immigrants concerned about new policies. Unemployment in Las Vegas surged to 5.8% in June, the third-highest among major U.S. metropolitan areas.

Industry leaders remain cautiously optimistic, pointing to strong convention bookings for the next 16 months and upcoming events like concerts by Paul McCartney and the 2026 FIFA World Cup. However, economists warn that the decline could signal broader U.S. economic woes, as Las Vegas has historically been a bellwether for consumer confidence. With inflation, high interest rates, and geopolitical tensions curbing discretionary spending, the city’s tourism-dependent economy faces an uncertain road ahead.

To counter the slump, the LVCVA is promoting budget-friendly activities and free attractions, while analysts suggest that a broader economic recovery is crucial for reversing the trend. For now, Sin City’s iconic allure is being tested, as travelers weigh the cost of its glitz and glamour against more affordable alternatives.