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Key Takeaways
- The number of visitors to Las Vegas fell by 11% in June, and was down 7% through the first six months of this year.
- Over a whole year, 7% would be the largest decline in more than 50 years, bigger than the drop felt during the Great Recession.
- Experts have pointed to several reasons for the drop, from a lackluster U.S. economy to a decline in international travel and changing habits among generations.
Las Vegas, one of America’s most popular tourist destinations, is showing signs of a downturn. Data released at the end of July showed that visitor volume has declined in each of the first six months of the year.
In June, visitor traffic dropped 11% from last year, with hotel rates and revenue per room also slipping, according to the Las Vegas Convention and Visitors Authority (LVCVA).
What Happens in Vegas Stays in Vegas, But Less Is Happening Right Now
Officials at the LVCVA blamed weaker consumer confidence, ongoing economic uncertainty, and fewer big conferences for June’s steep decline.
Through the first six months of the year, the number of visitors to Las Vegas was down about 7.3% compared with the same time a year ago. If the trend continues, 2025 could see the sharpest annual drop since records began in 1970—bigger than 4.4% and 3% drops during the Great Recession in 2008 and 2009.
The analytics firm found that auto traffic and gaming revenue on the Las Vegas Strip were the only two metrics up year over year, as the city’s population is growing while visitor traffic is declining.
On its own, a drop in visitors doesn’t prove a recession is imminent. But combined with a shaky job market and retailers warning of weaker discretionary spending, it suggests Americans are tightening their wallets.
Other Forces Pulling Visitors Away From Vegas
In addition to the broader economy, there are other explanations for the decline in Las Vegas tourism. Flights into the U.S. from Canada and other countries have declined this year, partly due to rising tensions from trade disputes between the Trump administration and several foreign governments. Las Vegas Mayor Shelley Berkley has said the city is feeling the effects of Trump’s trade wars.
Technology could be another factor: Sports betting apps and online gaming mean people no longer need to travel to Vegas to gamble. Generational shifts add to the trend, with younger visitors drinking less, staying home more, and choosing different types of entertainment than older adults.
Bottom Line
Las Vegas tourism has often been taken as a barometer of America’s economic mood, and the latest data isn’t encouraging. Visitor numbers are down more than 7% so far this year, raising red flags about consumer confidence and discretionary spending.
While global travel tensions and shifting generational habits could be partly to blame, the steepest potential annual decline in half a century signals that what’s happening in Vegas is unlikely to stay in Vegas.
