Vegas Tourism Takes Hit as Visitor Numbers Drop 6.5% in Early 2025

There has been a significant decrease in visitors to the state of Nevada by 2025, with total visitors to Las Vegas spiking downward with a 6.5% drop in the first four months of 2025, representing almost 1 million fewer than the 2 million visitors in 2024. February had the worst decline at 12%, with March seeing 8%, and April produced 5%. The loss of the Super Bowl to New Orleans and broader concerns over consumer confidence have played significant roles in this contraction.

"Right now, this feels like a pretty modest slowdown," said Steve Hill, CEO of the Las Vegas Convention and Visitors Authority (LVCVA). "It is driven somewhat by Canada, but it's largely a domestic issue around consumer confidence and consumer sentiment."

Harry Reid International Airport has experienced a 3.6% decline in passenger traffic, with international arrivals, particularly from Canada, experiencing a sharp decrease. Analysts attribute this drop to concerns about tariffs and past U.S. policy proposals that have dampened cross-border interest. The decline in foreign visitors is also affecting Nevada's prized outdoor tourism industry. Senator Catherine Cortez Masto has raised alarms, noting the issue could jeopardize $8.1 billion in outdoor recreation-related economic activity. "I'm trying to highlight this because most people don't realize the impact tourism and travel have on the economy," she said.

On the Strip, average nightly hotel rates have fallen by 5.5%, while occupancy sits at 85.5% — slightly lower than in 2024. This comes as the number of available rooms shrinks due to the closures of The Mirage and Tropicana.

To counteract the slump, Resorts World Las Vegas has launched a free parking initiative through Aug. 28, a notable shift away from the paid parking model MGM Resorts initiated in 2016. Also, Resorts World partnered with Zoox to introduce a driverless robotaxi service, which would be a first for a Strip resort, expecting a public launch late this year.

The LVCVA has adopted a $460 million fiscal 2026 budget, in which they expect a 5% decline in room tax revenue. In addition, it has passed SB459 to expand gaming availability by allowing private gaming salons with lower minimums.