Viva less Vegas?: New report shows sharp tourism decline in Sin City


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Summary

Tourism decline

Las Vegas visitation fell over 11% in June compared to the previous year and is down 7.3% for the year. Hotel occupancy also dropped by about 7% in June.

Rising costs

Some visitors and industry executives attribute part of the decline in tourism to increased costs associated with visiting Las Vegas. According to the Las Vegas Review-Journal, travelers have expressed frustration with expenses such as hotel resort fees, parking, and higher food prices.

Industry outlook

Industry executives are not expressing major concern over the visitation decline, according to the article. They anticipate that upcoming events, including the World Cup, will help boost tourism.


Full story

“What happens in Vegas stays in Vegas,” but it looks like tourism isn’t happening because new data shows it’s not staying in Las Vegas. The new numbers are prompting some to wonder why so few people are visiting Sin City. 

How bad are the numbers?

According to CDC Gaming, Las Vegas visitation fell more than 11% in June, compared to the year before, and it’s down 7.3% for the year. Hotel occupancy also dropped, about 7% in June compared to 2024. 

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Oliver Lovat, CEO of Denstone Group, a Las Vegas-based real estate company, told the publication that the city relies on discretionary spending. Something many people currently aren’t doing.

“Vegas relies on that. The only factor that correlates with Las Vegas visitation is consumer confidence, and that’s down,” he said. “When consumer confidence goes up, visitation will go up again. So let’s not overreact.”

Vegas officials say the majority of the decline is in the lower-income bracket. They say those who earn more are still traveling to Vegas normally.

Why aren’t people taking vacations?

In April, Bankrate released its annual summer vacation survey. While most Americans said they were planning a summer vacation, fewer than half planned to travel.

The surveyors asked those who didn’t plan to travel if it was the cost of traveling. About 70% of them said that everyday life was just too expensive.

Is Vegas changing?

While taking any type of vacation costs money, taking one to Vegas is expensive and many visitors are annoyed at the steep prices. Some have reported coffee as expensive as $9 and buffets as high as $100 in recent years.

In the past, Las Vegas was accessible for most people, with cheap flights and hotels, so you could spend most of your time — and money — gambling. However, this may be changing. 

Now, hotels are charging for everything, including parking, early check-in and even mandatory resort fees. This is leaving many travelers upset over getting nickel-and-dimed.

“I love paying for an experience, but if you are going to nickel and dime me, in my mind, what you’re doing is saying, ‘I will prey on your ignorance,’” Dee Ellis told the Las Vegas Review-Journal. “I think consumers, as a whole, we are getting tired of being nickel-and-dimed.”

Even the gambling is getting expensive, with $25 table minimums more prevalent than before. Some say Vegas is becoming too expensive for many people. 

“I think Vegas is kind of pricing itself out,” Bill Perry told the Las Vegas Review-Journal. “You don’t feel welcome at all when you’re charged every time you turn around [after] you already put out a lot of money just to be there.”

Casino operators say things are getting pricier for them, too. Executives say Vegas still offers people value, and compared to other places, it can still be relatively cheap. 

What about international tourists?

Las Vegas is a popular destination for tourists outside the U.S., especially for Canadians. However, Canadian tourism to Vegas has fallen nearly 20%, which is believed to be caused in part by recent political tensions.

Vegas isn’t alone in having fewer international tourists. Florida, a state in which tourism accounts for 10% of its GDP, has also seen a drop

While the biggest part of the tourism season is still happening right now, Florida has already reported a 3.4% drop in Canadian tourists. However, in some areas of the state, Canadian tourists were down about 20%. This could be an issue for Florida since Canadians make up 28% of the state’s tourists. 

Does Las Vegas have a problem?

Although the numbers aren’t moving in the direction most businesses want, they aren’t worried. The current industry consensus on The Strip is that business will bounce back soon. Executives believe the heavy event calendar and strong convention business later in the year will lead to a strong year for the city. 

Other executives are looking to next year as a big moneymaker. The city is set to host some big events, including Paul McCartney, the Backstreet Boys, Wrestlemania and the World Cup. 

“There are a lot of international visitors saving up to come to the U.S. for the World Cup next summer,” Lovat said. “I am less alarmist about the figures than other people are. Vegas still provides a huge range of entertainment and programming.”

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Why this story matters

Declining tourism in Las Vegas highlights changing consumer spending habits, rising travel costs and challenges for the hospitality industry, with potential economic impacts for the city and similar destinations.

Tourism decline

According to CDC Gaming, Las Vegas visitation fell more than 11% in June compared to the previous year, suggesting shifting travel preferences and potential economic challenges for local businesses.

Rising costs

Many visitors and industry observers report that increased fees, higher hotel and dining costs and costly gambling minimums are deterring lower-income tourists and changing the perception of affordability.

Economic and industry adaptation

Hospitality executives and analysts express expectations of recovery through events and conventions, while acknowledging that adapting to changing consumer demands and international trends is crucial for future growth.

SAN provides
Unbiased. Straight Facts.

Don’t just take our word for it.


Certified balanced reporting

According to media bias experts at AllSides

AllSides Certified Balanced May 2025

Transparent and credible

Awarded a perfect reliability rating from NewsGuard

100/100

Welcome back to trustworthy journalism.

Find out more

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