Why tourists are fleeing Las Vegas in the summer of 2025
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28 Jul 2025 •
Reading time: 4 minutes Las Vegas, the global symbol of entertainment, luxury and excess, is going through a period of unprecedented uncertainty. Once besieged by millions of visitors every month, the gambling capital is now seeing a sharp drop in visitor numbers. As the figures decline month after month, local authorities admit that the worst may still be to come.
A growing tourism crisis
Each month of 2025 reinforces the same alarming observation: Las Vegas is experiencing a steady decline in visitor numbers. In March, arrivals fell by 7.8% compared to March 2024, with approximately 3.39 million visitors compared to 3.68 million a year earlier. April saw a further decline of 5.1%, representing 180,000 fewer visitors for the month. In May, the decline reached 6.5%, representing more than 1 million fewer visitors cumulatively to date.
Las Vegas Convention and Visitors Authority (LVCVA) President Steve Hill warns that the situation is likely to get worse before it gets better, despite some temporary measures such as the planned elimination of resort fees. He also points out that revenue per available room (RevPAR) has fallen by 14%, which could be more significant than visitor numbers alone.
Hotel occupancy rates have fallen: occupancy rates dropped from 85.3% to 82.9% between March 2024 and March 2025. Gaming revenues on the Strip fell by 4.8% in March.
Despite this challenging environment, the convention sector is holding up well. In March, trade show attendance increased by around 10%, and several major events (health conventions, Bitcoin Conference, etc.) provided a temporary boost.
What are the causes of the decline?
Rising prices are a major factor: average room rates rose by nearly 70% between 2015 and 2024, from around $124 to $209 per night. Added to this are hidden fees (resort fees of up to $50 per day) and extravagant costs such as $9 coffee, $100 buffets and $279 VIP tickets.
At the same time, international visitors are declining, particularly those from Canada, down by around 20%, due to the unfavourable exchange rate, US immigration policies and tense diplomatic relations. This international decline is weighing heavily on a sector that depends on foreign travellers.
Who is suffering the most from the decline?
According to Steve Hill, high-end customers remain relatively unaffected, but visitors in the middle segment, who once formed the core of the mass market, are the ones reducing their presence the most. It is this erosion of the ‘middle market’ that risks causing a domino effect on the entire local economy, from casinos to restaurants to employment.
This decline in tourist traffic is having a direct impact on the incomes of service professionals. Workers such as croupiers, waiters and tattoo artists report that their tips have fallen by up to 50%, despite a recent tax exemption on tips of up to $25,000.
Towards an uncertain future… but not without hope?
Steve Hill remains convinced that the collapse is temporary, linked to geopolitical tensions and economic uncertainties.
“The last couple of months haven’t been quite as good, and things are down a little bit, as everybody knows. The top of the market is still doing fine and not having any difficulty, but folks around the country are concerned about their jobs and their financial situation, causing them to hesitate.”
But he also warns that if the average customer continues to desert, hotel groups will have to readjust their strategy, or even reposition their offering according to the target profile.
“But as the bottom of the market has suffered a little more, you will start to see the numbers happen that affect the entire city and you’ll start to see some of the properties that have six, eight or nine hotel resorts manage them differently depending on who their target audience is.”
Some downtown casinos, such as Downtown or those on Fremont Street, are taking advantage of this situation to attract customers looking for more affordable rates and an authentic atmosphere. These include options with no hidden fees, free concerts, and rates that are much lower than on the Strip.
Las Vegas faces a critical turning point in 2025: indicators are falling, visitors are deserting the city, and the tourism economy is under strain. There are many reasons for this: rising prices, declining international visitor numbers, and political and economic uncertainty. While luxury seems to be holding up, it is the mass market that is fleeing, threatening to drag the entire commercial chain into a downward spiral. It remains to be seen whether Las Vegas will be able to reinvent itself and regain its balance.