Tourism drop in Nevada raises economic concerns beyond casinos

By Steve Wolford

LAS VEGAS (KSNV) — The decline in tourism numbers is causing significant concern for Nevada’s economy, with impacts reaching beyond the hospitality industry.

Jimmy Singh, who runs Las Vegas Souvenirs and Gifts, said his business is suffering due to a combination of factors, including the F-1 street closures and tariffs on imported merchandise. “I saw that also, for now, that tourism is less than last years. We see like a 30 to 40-percent drop,” Singh said, noting a significant decrease in foot traffic and fewer international visitors.

Singh added that Canadian tourists, once a significant portion of his customer base, are notably absent. “Canada is more worst. Used to we have a lot of Canadians. Lot. Everywhere I see a Canadian. And now? No,” he said.

Tourism is crucial to Nevada’s economy, with a $98 billion impact, supporting over a quarter of all jobs, generating 22 percent of wages, and contributing 34 percent of tax dollars to the general fund, according to Applied Analysis and the Nevada Resort Association.

This results in a $3,000 reduction in the tax burden per household.

Alan Feldman, Director of Strategic Initiatives at UNLV’s International Gaming Institute, said the decline in tourist-driven revenues from gaming and resorts has lawmakers hesitant to raise taxes, leading to potential cuts in public programs. “I think in Nevada, the more historic response has been cutting programs, reducing programs,” Feldman said. “So it’s not just politicians who are concerned. I’m confident there are teachers who are concerned. There are library staff who are concerned. There are hospital staff who are concerned.”

The question remains whether this downturn is part of a cycle or a new normal. Singh expressed concern about changing perceptions of America among international tourists. “People think in a different way now. Used to say everybody love for America and now, a lot of them, they don’t,” he said.

The discussion on how to address the tourism decline will continue, with insights from Governor Joe Lombardo and Senator Jacky Rosen expected in the next installment of the “Las Vegas Reality Check.”