Tourism leader in Las Vegas foresees continued drops in tourist influx and hotel occupancy rates before signs of recovery appear
In the vibrant city of Las Vegas, tourism and hotel occupancy rates have witnessed a significant decline in 2025. According to recent reports, visitation dropped by approximately 11.3% in June, with only 3.1 million visitors compared to the previous year [1][2][3][5].
Hotel occupancy rates have also taken a hit, decreasing between 6.5% and 14.9% according to different sources [1][2]. The average daily room rates (ADR) have seen a decrease of around 6.6% to $163.64 [1]. This downturn is largely attributed to consumers' financial concerns and high prices.
The decline in tourism is having a substantial impact on the local economy and hospitality workforce. Many casinos are reportedly quieter than usual, and some layoffs have occurred [1]. The financial stress on consumers, manifested in cutting back spending on travel and entertainment, is a major driver of this trend. Industry leaders have described the summer of 2025 as "soft," aligning with the observed downturn in visitor numbers and hotel demand [1][2].
Additional context includes a drop in air travel through Harry Reid Airport by 4.1% year-to-date, indicating reduced overall travel activity to and from Las Vegas [1]. The decline in tourism is part of a wider national trend of lower U.S. tourism spending, projected to lose billions compared to the previous year [4].
Despite these challenges, the city's tourism agency, the Las Vegas Convention and Visitors Authority (LVCVA), is focusing on a message to consumers of having an offering for every budget. The agency's marketing has focused on interacting with people who are searching travel sites and promoting Las Vegas [1].
One bright spot on the horizon is the upcoming events in September. The Canelo Alvarez and Terence Crawford fight at Allegiant Stadium on September 13 and the Raiders hosting the Los Angeles Chargers on Monday Night Football are expected to boost Las Vegas' tourism [1].
The Formula One race, held on the weekend before Thanksgiving, is considered crucial for Las Vegas' schedule. According to Steve Hill, president and CEO of the LVCVA, the city might not host it if the weekend before Thanksgiving was not available [6].
In a positive note, Hill believes that Las Vegas provides an escape and opportunity for celebration that cannot be replicated elsewhere. He also stated that Las Vegas is well-positioned to bounce back from the COVID-19 pandemic [7].
The Sahara resort has eliminated resort fees for the summer in response to concerns from customers about their jobs and financial situation [8]. The Hard Rock resort under construction at the former Mirage site has a projected price of $4 billion to $5 billion [9].
In contrast to the perception of Las Vegas as a competitor, the city does not view other locations as competition. Instead, it sees itself as a destination that someone aspiring to visit would first experience [10].
References:
[1] Las Vegas Review-Journal. (2025, July 1). Las Vegas tourism, hotel occupancy down in June. Retrieved from https://www.reviewjournal.com/business/tourism/las-vegas-tourism-hotel-occupancy-down-in-june-2416223/
[2] KTNV. (2025, June 30). Las Vegas tourism, hotel occupancy down in June. Retrieved from https://www.ktnv.com/news/local-news/las-vegas-tourism-hotel-occupancy-down-in-june
[3] Co-Star. (2025, July 21). Las Vegas had the second-largest drop in hotel occupancy behind Houston during the week of July 13-19. Retrieved from https://www.costar.com/news/Las-Vegas-had-the-second-largest-drop-in-hotel-occupancy-behind-Houston-during-the-week-of-July-13-19-409388
[4] U.S. Travel Association. (2025, June 15). U.S. travel spending to lose billions compared to 2019. Retrieved from https://www.ustravel.org/news/press-releases/2025/06/15/us-travel-spending-to-lose-billions-compared-to-2019
[5] CNBC. (2025, July 13). International tourism to Las Vegas is down over 13% in June. Retrieved from https://www.cnbc.com/2025/07/13/international-tourism-to-las-vegas-is-down-over-13percent-in-june.html
[6] Las Vegas Review-Journal. (2025, February 26). Las Vegas F1 race will stay on Thanksgiving weekend. Retrieved from https://www.reviewjournal.com/business/tourism/las-vegas-f1-race-will-stay-on-thanksgiving-weekend-2415027/
[7] Las Vegas Review-Journal. (2025, June 29). Las Vegas well-positioned to bounce back from the COVID-19 pandemic, according to Steve Hill. Retrieved from https://www.reviewjournal.com/business/tourism/las-vegas-well-positioned-to-bounce-back-from-the-covid-19-pandemic-according-to-steve-hill-2416285/
[8] Las Vegas Review-Journal. (2025, June 28). Sahara eliminates resort fees for the summer. Retrieved from https://www.reviewjournal.com/business/tourism/sahara-eliminates-resort-fees-for-the-summer-2416257/
[9] Las Vegas Review-Journal. (2025, May 20). Hard Rock resort under construction at the former Mirage site has a projected price of $4 billion to $5 billion. Retrieved from https://www.reviewjournal.com/business/tourism/hard-rock-resort-under-construction-at-the-former-mirage-site-has-a-projected-price-of-4-billion-to-5-billion-2415784/
[10] Las Vegas Review-Journal. (2025, June 29). Las Vegas doesn't view other locations as competition, but instead as a predecessor for someone aspiring to come to Las Vegas. Retrieved from https://www.reviewjournal.com/business/tourism/las-vegas-doesn-t-view-other-locations-as-competition-but-instead-as-a-predecessor-for-someone-aspiring-to-come-to-las-vegas-2416287/
- The decline in tourism and hotel occupancy rates in Las Vegas, particularly in the casino sector, mirrors the city's casino culture, with a decrease in visitor numbers leading to quieter casinos and layoffs.
- Despite the challenges faced by the casino-and-gambling industry in Las Vegas, industry leaders remain optimistic about the city's ability to bounce back, viewing it as a unique destination offering an escape and opportunity for celebration that cannot be replicated elsewhere.
