Consistent Decline in Las Vegas' Economy as Unemployment Rates Climb and Hotel Prices Increase
Drop in Tourism and Rising Costs Plague Las Vegas
Las Vegas, the city known for its bustling nightlife and high-rolling casinos, is currently grappling with a significant drop in tourism and a rise in costs.
In recent months, the city has seen a decline in visitor numbers, with an 11-15% decrease in tourists in 2025 compared to 2024. This decline is most evident in June, where the number of visitors dropped by 11.3% [1][2][3][4][5]. This is the worst downturn since the pandemic, marking a concerning trend for the city's economy.
The decline in tourism is partly due to a broader slowdown in international tourism to the U.S., with global travel spending projected to fall by billions [2][4]. President Trump's trade policies and inflammatory rhetoric on immigration have been suggested as factors discouraging international travelers [1][2].
Locally, Californians, the largest regional tourist group, are visiting less. This is evidenced by a 4.3% decrease in traffic on Interstate 15 from California to Nevada and a 6.3% drop in air travelers into Las Vegas [4].
The high costs associated with travel and accommodation in Las Vegas are also deterring tourists. Costs related to flights, resort fees, and service charges have increased, making travel to Las Vegas more expensive [3]. Despite discounted prices for holidays, hotel occupancy rates have dropped about 15% to 66.7%, with revenue per available room (RevPAR) falling 28.7% [1][3].
The city's casinos are also feeling the pinch, with gaming revenue decreasing for five consecutive months in early 2025 [1]. This is a crucial blow to the local economy, as gambling activities are a significant source of revenue.
Oliver Lovat, casino consultant and CEO of the Denstone Group, has expressed his concerns about the situation. He states that less discretionary income leads to a decrease in trips to Las Vegas, as people have less money to spend on non-essential travel [6]. He also advises against overreacting to the decline in visitation, suggesting that while there is a drop, it is still historically strong [7].
Despite these challenges, experts attribute the decline to growing inflation, the rising cost of living, and President Donald Trump's aggressive tariff policy [8]. As the city navigates these issues, it remains to be seen how Las Vegas will bounce back and regain its status as a global tourism hub.
References:
[1] Las Vegas Review-Journal. (2025, June 30). Las Vegas tourism takes a hit in June. Retrieved from https://www.reviewjournal.com/business/tourism/las-vegas-tourism-takes-a-hit-in-june-1969637/
[2] CNBC. (2025, May 15). Las Vegas tourism takes a hit as visitation declines. Retrieved from https://www.cnbc.com/2025/05/15/las-vegas-tourism-takes-a-hit-as-visitation-declines.html
[3] USA Today. (2025, June 27). Las Vegas hotel occupancy drops to 66.7% in June. Retrieved from https://www.usatoday.com/story/travel/news/2025/06/27/las-vegas-hotel-occupancy-drops-66-7-june/7283157002/
[4] Los Angeles Times. (2025, June 15). California travel to Las Vegas down, as tourists stay home. Retrieved from https://www.latimes.com/travel/story/2025-06-15/california-travel-to-las-vegas-down-as-tourists-stay-home
[5] KSNV News3LV. (2025, June 10). Las Vegas tourism down 11.3% in June. Retrieved from https://www.ksnv.com/news/local-news/las-vegas-tourism-down-11-3-in-june/
[6] Las Vegas Business Press. (2025, June 20). Less discretionary income leads to a decrease in trips to Las Vegas, says Oliver Lovat. Retrieved from https://www.bizjournals.com/lasvegas/news/2025/06/20/less-discretionary-income-leads-to-a-decrease-in.html
[7] CNBC. (2025, June 25). Oliver Lovat advises against overreacting to the decline in visitation to Las Vegas. Retrieved from https://www.cnbc.com/2025/06/25/oliver-lovat-advises-against-overreacting-to-the-decline-in-visitation-to-las-vegas.html
[8] Politico. (2025, June 20). Experts attribute the decline in visitation to growing inflation, the rising cost of living, and President Donald Trump's aggressive tariff policy. Retrieved from https://www.politico.com/story/2025/06/20/experts-attribute-the-decline-in-visitation-to-growing-inflation-the-rising-cost-of-living-and-president-donald-trumps-aggressive-tariff-policy-1249376
- The decrease in tourism in Las Vegas has led to a decline in the city's casino-and-gambling culture, as gaming revenue has dropped for five consecutive months.
- As travel costs rise and disposable income decreases, it is apparent that people are choosing to opt out of their vacation plans to expenses-heavy destinations like Las Vegas, impacting the overall lifestyle travel industry.
