Las Vegas Tourism Suffers Sharp Decline, Biggest Drop Since 1970

Las Vegas tourism saw its sharpest annual decline since 1970, losing 3.1M visitors in 2025. Midweek slowdown, international drops, and airline cuts signal mounting economic pressure.

Las Vegas is experiencing its most significant tourism downturn in over five decades, with 2025 visitor numbers plummeting by 7.5% a loss of approximately 3.1 million tourists, marking the sharpest annual decline outside the pandemic since record-keeping began in 1970 . The slowdown has intensified into 2026, with major hotel chains reporting declining revenues and airlines slashing capacity.

The visitor contraction is starkly visible at Harry Reid International Airport, where passenger traffic fell 6% in 2025 and December traffic dropped 10.3%, typically a peak holiday month . U.S. carriers have scheduled 7% fewer seats into Las Vegas for the first quarter of 2026 compared to the previous year.

International markets have been hit particularly hard. Canadian arrivals have plunged nearly 30%, with airlines cutting capacity by approximately 30-40% amid political tensions and tariff disputes. Brazil saw a 33.3% drop, Germany 29.2%, the Netherlands 15.7%, and the UK 9.6%. International visitors typically stay longer and spend more, amplifying the economic impact.

The downturn follows a K-shaped consumer spending pattern, where higher-income travelers continue visiting while budget-conscious households pull back. Midweek revenue per available room fell 11% in 2025, forcing hotels to offer promotions and dining credits. MGM Resorts reported weakness at value-oriented properties like Luxor and Excalibur; while Caesars Entertainment saw Las Vegas profits drop approximately 20%.

Workers are feeling immediate effects, with tips declining significantly and extra shifts disappearing. Some part-time staff have seen hours cut from 40 to 30 per week. The Culinary Union, representing 60,000 hospitality workers, has dubbed the situation the "Trump slump," citing political uncertainty and immigration policy concerns deterring international visitors.

While UNLV's Center for Business and Economic Research projects a modest rebound to 40.1 million visitors in 2026, officials remain "cautiously pessimistic" as the city grapples with affordability perceptions and reduced flight schedules.