Tourism in Las Vegas, long regarded as the city that never sleeps and the economic engine of Nevada, is facing a summer downturn that has city officials, union leaders, and business owners sounding the alarm. According to the Las Vegas Convention and Visitors Authority, the number of tourists visiting the city dropped by 11% in June 2025 compared to the previous year, and the decline is even sharper among international travelers, who fell by 13%. Hotel occupancy has also taken a hit, down about 15% from June 2024. These figures, reported by both the Associated Press and The American Prospect, highlight a season of struggle for the city’s famed resorts, casinos, and convention centers.
The impact is being felt far and wide. Mayor Shelley Berkley described the situation bluntly, stating that tourism from Canada—Nevada’s largest international market—has slowed from a torrent “to a drip.” The story is much the same for visitors from Mexico. “We have a number of very high rollers that come in from Mexico that aren’t so keen on coming in right now. And that seems to be the prevailing attitude internationally,” Berkley told reporters earlier this month, as cited by The Canadian Press. She also pointed to the rising costs of food, hotel rooms, and attractions as further deterrents, explaining, “People are feeling that they’re getting nickeled and dimed, and they’re not getting value for their dollar.”
For many, the reasons behind the slump are clear. Ted Pappageorge, secretary-treasurer of the powerful Culinary Workers Union, has called it the “Trump slump.” He attributes the downturn to the Trump administration’s tariffs and strict immigration policies, which he says have created a climate of fear and resentment among both international and domestic travelers. “If you tell the rest of the world they’re not welcome, then they won’t come,” Pappageorge said, as reported by the Associated Press. The union leader added, “We were on track to have a banner year. That has now been completely turned around.”
The numbers from Canadian airlines tell a stark story. Air Canada’s passenger count to Las Vegas dropped by 33% in June compared to the same month last year. WestJet saw a 31% decline, while low-cost carrier Flair experienced a staggering 62% drop. Travel agents north of the border are also seeing a significant reduction in clients interested in visiting the United States—and Las Vegas in particular. Wendy Hart, a travel agent from Windsor, Ontario, remarked, “Politics, for sure,” was the main reason for the downturn, speculating that President Trump’s comments about making Canada the 51st state have hit a nerve. “The tariffs are a big thing too. They seem to be contributing to the rising cost of everything,” Hart said.
The effects of this tourism slump are being felt across the local economy. Clark County, which encompasses Las Vegas and its surrounding metropolitan area, is responsible for 75% of Nevada’s state budget, largely thanks to tourism and hospitality. Last year, Las Vegas tourism generated nearly $88 billion, a 3% increase over 2023. Yet, the state’s budget for fiscal year 2025 is $46.9 billion, and the current downturn threatens to erode this vital revenue stream. The American Prospect reports that mortgage defaults in Clark County increased by almost one third in the first half of 2025 compared to the same period last year, with 1,290 default filings. Evictions are also on the rise, climbing from 3,911 in January to 4,244 in July, according to Princeton University’s Evictions Lab. Homelessness has been on the rise since 2023.
Business confidence in southern Nevada has plummeted to a 16-year low, with economists at the University of Nevada, Las Vegas, noting a “decidedly pessimistic sentiment on local business conditions, U.S. economic conditions, and the local economy.” Local business leaders, surveyed for the university’s quarterly report, forecast more unhappiness ahead, citing lower expectations for hiring and home prices, and an overall sense of economic uncertainty.
Some businesses, however, are finding ways to weather the storm. Derek Stevens, owner and CEO of Circa Resort and Casino, acknowledged that international visits have dipped—especially from Canada and Japan—but emphasized that gaming numbers, particularly sports betting, remain strong. “It’s not as if the sky is falling,” Stevens said. Circa has introduced cheaper package deals to attract more budget-conscious travelers, and Stevens remains optimistic: “There have been many stories written about how the ‘end is near’ in Vegas. But Vegas continues to reinvent itself as a destination worth visiting.”
On the ground, not everyone is noticing the downturn. Alison Ferry, a visitor from Donegal, Ireland, told The Associated Press she found the casinos and the Strip to be “very busy. It has been busy everywhere that we’ve gone. And really, really hot.” Meanwhile, attractions like the Pinball Museum, which offers free parking and admission, have not seen a slowdown. Manager Jim Arnold credits their continued success to affordability, saying, “We’ve decided that our plan is just to ignore inflation and pretend it doesn’t exist. So you still take a quarter out of your pocket and put it in a game, and you don’t pay a resort fee or a cancellation fee or any of that jazz.”
Yet, the broader economic picture remains challenging. The Trump administration’s policies are not only affecting tourism but are also making life harder for professional gamblers. Starting next year, a new spending law will prevent gamblers from deducting all their losses, a move that could severely impact a core segment of Las Vegas’s customer base. Promised relief for workers, such as the No Tax on Tips legislation, has had little real-world effect, according to The American Prospect.
Governor Joe Lombardo, a Republican, is steering Nevada toward economic diversification, seeking to reduce reliance on tourism by fostering growth in tech and manufacturing. He has introduced tax abatements for companies such as Tesla and Crocs, aiming to attract aerospace, defense, battery, and robotics factories. Just this month, Lombardo awarded a $4.7 million abatement to Crocs for an e-commerce fulfillment center in North Las Vegas, expected to create 70 jobs with hourly pay of $34.03. “These investments reflect our ongoing commitment to creating good-paying jobs for Nevadans and building a strong, diverse economy in our state,” Lombardo said in a statement.
However, there are complications. Tesla, after receiving substantial tax breaks, laid off 693 workers in Sparks, Nevada—including 668 at the Gigafactory. Lithion Battery, a lithium-ion battery manufacturer, faces a 30% tariff on equipment imported from China and struggles to secure visas for essential Chinese experts. Even as tech and manufacturing jobs increase in Reno, many available positions require advanced credentials that the current workforce may lack. Meanwhile, Nevada’s GDP was down for the first quarter of 2025, mirroring a national trend seen in 38 other states.
Looking ahead, there are glimmers of hope. Economists and business leaders point to upcoming events such as the Las Vegas Grand Prix in November, the National Finals Rodeo in December, and the Enhanced Games in May as potential catalysts for a tourism rebound. Still, concerns linger about the chilling effect of immigration enforcement, with accounts of international visitors detained or denied entry making headlines and raising questions about the city’s global appeal.
As Andrew Wood, director of the University of Nevada’s Center for Business and Economic Research, put it: “I’m not ready to say where we’re headed. It feels like we’re on a knife’s edge.” For Las Vegas, a city built on risk and reinvention, the stakes have rarely been higher—or the outcome more uncertain.
