The real reasons Las Vegas is losing visitors

By Mohamed Dabo

Yahoo Finance

Las Vegas is experiencing a notable downturn in tourism, with hotel occupancy, visitor numbers and spending all slipping.

Industry data points to several key reasons behind the shift, including rising costs, fewer international travelers, and broader economic uncertainties.

Drop in international visitors and hotel occupancy

According to the Las Vegas Convention and Visitors Authority, hotel occupancy dropped to just 66.7 percent in early July—a sharp fall from the previous year—and international visitor numbers plunged by more than 13 percent in June alone.

Domestic arrivals also fell by around 6.5 percent, and traffic through Harry Reid International Airport declined nearly 4 percent overall.

Soaring prices and hidden resort fees

Tourists are increasingly deterred by the high cost of visiting. Reports highlight eye-watering prices such as $33 bagels and $26 bottles of water, onerous parking and resort fees, and surprise charges for early check-ins and basic amenities.

One visitor remarked people felt they were “getting taken for a ride” as nickel-and-dimed pricing became widespread.

Economic anxiety and geopolitical factors

Rising inflation, economic instability and geopolitical tensions are impacting consumer confidence.

Experts link this to what’s been dubbed the “Trump slump” in tourism, marked by tariffs, strained international relations, and increased visa fees for visitors to the US.

Senator Jacky Rosen also warned of an 8 percent drop in international visits, partially blamed on travel deterrents like aggressive immigration policies.

Why is travel to Las Vegas dropping?

The slide in Las Vegas tourism is tied to multiple factors.

The sharp decrease in overseas visitors—who typically stay longer and spend more—is a major blow. Convention traffic remains strong, up about 10 percent, but leisure travel has softened, with weekday hotel occupancy dipping below trend.

This suggests that while business visitors help, they can’t fully compensate for falling vacation travel.

How pricing is pushing visitors away

As Las Vegas pivots towards a luxury model with high-end entertainment and premium resort offerings, many mid-range travelers are being left behind. Massive mark-ups on everyday items and hidden fees have led to visitor backlash.

One analyst called it a “gouge,” resonating with comments from tourists fed up with resort extractions before even entering the casino floor.

Economic headwinds and policy hurdles

Beyond prices, macroeconomic concerns are curbing travel budgets. Economists forecast a slow contraction in gaming revenue as discretionary income tightens.

Meanwhile, visa integrity fees of $250 for non‑visa waiver visitors and global travel restrictions have discouraged inbound tourism.

Ultimately, Las Vegas is at a crossroads. The iconic city is losing some of its broad appeal due to high costs and international travel hurdles.

Without adjustments to pricing strategies and efforts to re—engage mid‑market and overseas visitors, the decline in tourism could deepen—even if larger-scale conventions remain robust.

"The real reasons Las Vegas is losing visitors" was originally created and published by Hotel Management Network, a GlobalData owned brand.