Las Vegas Tourism Drops as Sin City Faces Economic Challenges

Las Vegas is experiencing economic difficulties as tourism numbers continue to decline and unemployment rises to among the highest rates in the nation. Las Vegas saw a 12% decline in visitors compared to a year ago, hosting about 3.1 million people, according to LVCVA data.

The crisis has been building throughout 2025, with the city welcomed about 1 million fewer travelers compared to the same period in 2024, marking a 6.5% year-to-date decline through May. This represents the sixth consecutive month of declining visitor numbers, signaling a sustained economic problem rather than a temporary dip.

High Prices Drive Away Middle Class

Industry experts point to aggressive price increases as a primary factor alienating traditional Las Vegas visitors. Resort fees soared, parking became a paid privilege even for guests, and everyday items like bottled water hit exorbitant prices, with reports of $26 charges at properties like the Aria.

“The whole town is slower,” said Crazy Horse 3 owner Nando Sostilio, whose strip club recently announced a slate of specials to draw more customers. Local businesses across the Strip are feeling the impact, with many implementing promotional campaigns to attract declining foot traffic.

International Tourism Collapses

The downturn has been particularly severe for international visitors. Traffic from Canada is down about 18%, which Hill attributed in part to friction caused by politics and tariffs. Canadian air travel to Las Vegas dropped by 55% for some carriers, and AeroMexico saw a 63% decrease compared to last year.

Political tensions and visa processing delays have created additional barriers. He also criticized a $250 U.S. visa fee for travelers from non-waiver countries, costs that can top $1,000 for a family of four, and long processing times that he said suppress demand.

Unemployment Soars

The tourism decline has directly impacted local employment. The Las Vegas-area’s unemployment rate in May, 5.5 percent, was second highest among metro areas with at least 1 million people, lower than only Fresno, California, at 7.8 percent, according to the U.S. Bureau of Labor Statistics.

The jobless rate has been climbing steadily, up from 5.5 percent in May, according to non-seasonally adjusted figures released this week by the Nevada Department of Employment, Training and Rehabilitation. This contrasts sharply with the national unemployment rate of 4 percent.

Gaming Revenue Mixed

Despite fewer visitors, gaming revenue has shown some resilience. Nevada casinos kept $1.36 billion from gamblers in July, up 4% from a year earlier, according to data from state regulators. The Las Vegas Strip drove the increase with $749 million, a 5.6% gain. However, this suggests visitors who do come are spending more per person while overall numbers continue declining.

Industry Response

Casino operators have launched aggressive promotional campaigns to combat the downturn. Recent examples include: Resorts World waiving resort fees and paid parking through Sept. 10, the Sahara Las Vegas Hotel offering free parking, late check-out and upgrades on select stays and other properties implementing value-focused packages.

Las Vegas Convention and Visitors Authority CEO Steve Hill remains cautiously optimistic, stating “We’re not happy with the downturn but the city’s taking steps to address that.” However, economists predict the challenges may persist through 2026.

Economic Indicator for Nation

The Las Vegas downturn is being watched closely as an economic bellwether. Economists say that what happens in Vegas matters nationally because it often reflects broader trends on consumer confidence and the overall health of the U.S. economy.

University of Nevada, Las Vegas economist Andrew Woods noted that “It tends to be a signal for potentially where the economy’s headed.” The sustained decline suggests broader consumer confidence issues that could impact other discretionary spending sectors nationwide.

See related article: Cedar Point, Six Flags Cut Staff as Attendance Drops Across Chain