Las Vegas tourism plummets amid local greed and U.S. politics

Las Vegas is recording declining numbers of tourists since the start of 2025, paying a tribute to years of increasing hidden charges from hotels and expensive F&B. While the negative image of the USA as a tourist destination for international visitors adds to the gloom.

Las Vegas tourism industry increasingly suffers from excessive pricing and fees practices. While international travelers avoid the USA as they feel not particularly welcomed by the current federal government.

Las Vegas tourism chases the rich

More and more visitors complain openly about hidden charges such as resort fees or parking charges. These fees in a range of US$40 to US$60 add to skyrocketing hotel prices and service charges. Some tourists wonder how it is possible for example to pay US$20 for a bottle of water. General complaints point to excessive drink and food prices in casinos and entertainment venues. They often exceed prices in cities like New York or LA.

Such policies create the perception that Las Vegas is no longer a good-value destination. This was for a long time the “bread and butter” of the tourism industry in the world’s capital city of gambling and entertainment. This policy has been deliberately implemented from the 2000s as Las Vegas shifted away from its gambling roots to focus on luxury entertainment, dining, and sports.

High-end shows, like the F1 Grand Prix (2023) and Super Bowl 2024, drew criticism for displacing locals and pricing out regular tourists. This “gentrification” of the Strip now alienates traditional middle-class tourists.

Arrivals decline accelerated in June 2025

Last year, Las Vegas still managed to record a growth in arrivals of 2.1% at 41.67 million. It is still behind record year 2016 with 42,94 million visitors. Or even the year 2019 when Las Vegas recorded 42,52 million travelers.

International arrivals counted only for 12% of total arrivals, equivalent to 5.02 million visitors in 2024.

Canada and Mexico alone generate 52% of all international visitors, equivalent to 2,62 million arrivals. Europe is the largest overseas market representing 1.22 million arrivals. Top European countries are the UK (0.55 million), Germany (0.19 million) and France (0.087 million). While in the rest of the world, top inbound markets are Australia (0.28 million), South Korea (0.17 million) and Brazil (0.13 million).

According to latest data on Las Vegas, the first half of 2025 recorded a sharp decline in visitors arrivals. With 19.1 million arrivals, Vegas recorded a decline of 7.3% over the same period of 2024. June 2025 recorded the second biggest drop in arrivals for the year at -11.3% compared to the same month of 2024. February 2025 so far saw the worst decline at -11.9%.

Hotel occupancy down

Hotel occupancy was down -2.1% from January to June, hitting an average of 82%. In June, the occupancy reached around 78.7%, marking the lowest since August 2022 .

The average room rate was down -5.5% at US$185.24 during H1 2025. June 2025 shows an acceleration of that decline. The average room rate reached US$163.64, down -6.6%. Revenue per available room is down -7.8% for the first half of 2025 and dropped -13.8% in June.

Visa wait times, strict immigration policies, and a current unwelcoming image continue to discourage visitors from key overseas markets.

Chinese and European tourists — once growing demographics in Vegas — have pulled back significantly. While numbers are not available yet for international markets, an indicator is the data from Las Vegas Harry Reid International Airport. International passengers’ movements were down -1.4% in the first six months of 2025. However, total international passengers movements dropped -9.8% between June 2024 and 2025. Double-digit declines in passengers arrival is signaled for Canada and Mexico.

Resorts are finally reacting

Many resorts and hotels are now reducing nightly rates by 30–60%. Downtown – off‑Strip- properties are the keenest to propose discounts on room rates. While some of the resorts along Las Vegas famed Strip eliminate resort fees on a temporary basis.

Resorts World Las Vegas eliminated its resort fees and offers free parking up to September 11, 2025. Another resort, Sahara Las Vegas has also promotional rates that include the elimination of its resort fee through October 31, 2025, though this requires booking by August 10.

Other hotels such as Venetian & Palazzo propose up to 33% off with dining or spa credits. Many hotels are indeed expanding packages with perks like meal credits, spa/dining vouchers, and happy hour pricing to attract budget-conscious travelers.

A positive evolution is also a new rule from the Federal Trade Commission that took effect in May 2025. The rule bans “unfair and deceptive pricing practices” and requiring hotels to disclose the total cost upfront.

Will Las Vegas be able to turn the corner and not be perceived anymore as over-commercialized and overpriced thanks to those initiatives ? While hotels and tourism stakeholder quickly react, the city however remains caught in the wider fallout of US political image. Except if the current US administration mellows its perception towards foreigners. 

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