Las Vegas Tourism Faces Significant Decline in 2025

Las Vegas, the entertainment capital of the world, is grappling with a notable downturn in tourism in 2025, a stark contrast to the bustling crowds of 2024. Data from the Las Vegas Convention and Visitors Authority reveals a 7.3% drop in visitor volume for the first half of 2025, with 19.1 million visitors compared to 20.6 million in the same period last year. Monthly declines have been particularly sharp, with June 2025 seeing an 11.3% decrease in visitors, plummeting to 3.1 million from 3.49 million in June 2024.

The ripple effects are evident across the city’s hospitality sector. Hotel occupancy rates have slid to 82% for the first half of 2025, down 2.1% from 2024, with June hitting a low of 78.7%—the weakest since August 2022. The iconic Las Vegas Strip, known for its vibrant energy, saw occupancy drop to 88.3% in June, a 14.6% year-over-year decline. Revenue per available room (RevPAR) also took a hit, falling 7.8% overall and 13.8% in June alone, while average daily room rates dipped 5.5% to $185.24.

Air travel to Las Vegas reflects similar struggles. Harry Reid International Airport reported a 4% decrease in passenger traffic for the first half of 2025, with international visitors, particularly from Canada and Mexico, dropping by 9.8% in June due to economic uncertainties and trade tensions. The gaming industry, a cornerstone of Las Vegas’s economy, saw Strip revenues decline by 4.8% in March and 3.9% in May compared to 2024.

Several factors contribute to this slump. The absence of major events like the 2024 Super Bowl, coupled with rising costs and global economic concerns, has dampened traveler enthusiasm. International visitors, a key demographic, have been deterred by U.S. policies and a strong dollar. However, there are glimmers of resilience—convention attendance in May 2025 rose by 10.7%, signaling sustained interest in Las Vegas as a business destination.

To counter the decline, local operators are rolling out incentives such as reduced resort fees and free parking to lure visitors back. Industry leaders remain cautiously optimistic, noting that Las Vegas still outperforms pre-pandemic benchmarks in some areas. As the city navigates these challenges, its ability to adapt and innovate will be crucial in restoring its status as a global tourism powerhouse.