Las Vegas Tourism Drops 7% in 2025 Amid Rising Costs, Inflation

Las Vegas has experienced a significant and sustained decline in tourism throughout 2025, with visitor numbers dropping around 7-12% compared to the previous year, signaling economic challenges for a city heavily reliant on tourism. Rising costs, including hotel rates often exceeding $300 per night, expensive drinks, and resort fees, have made the city less affordable, pushing some visitors to seek accommodations in nearby rural areas or opt for budget-friendly international destinations. While hotel occupancy and gaming revenues have fallen, convention attendance and non-gaming tax revenues show some resilience, reflecting ongoing efforts to diversify the local economy. The downturn is attributed to inflation, geopolitical tensions, a cooling job market, and reduced international arrivals due to visa restrictions, all contributing to waning consumer confidence and discretionary spending. Industry analysts warn this slump could serve as an early indicator of broader economic troubles nationally, with layoffs in hospitality sectors already occurring. Despite these challenges, some resorts are actively countering the trend by offering promotions like waived resort fees and free parking to attract visitors.