Las Vegas Now Faces Ongoing Tourism Decline Amid Shifts in Travel Demand Across the United States, Here’s All You Need to Know

Published on November 26, 2025

Las Vegas has been an entertainment capital for years. However, it has now been ten months with a decline in tourism. In October, Las Vegas welcomed 3.41 million guests. This might seem like a large number, but it was significantly lower when compared to last year. We see a decline of about 155,000 guests. However, there were large declines last summer. Their is cautious optimism that the downturn has begun to level off.

September of the year was recorded as the month with the most severe declines in 2024. The number of tourists that month was 3.09 million, which was a decline of 8.8% from the previous year 2024. The number of guests that Vegas had in October saw a negative decline, but there is an indicator of a positive change. This might be the start of a gradual recovery of the tourism industry in Las Vegas.

Major Events Offer Hope for Rebound

Las Vegas tourism leaders anticipate that November’s numbers may reflect a more substantial recovery, thanks to major events such as the Las Vegas Grand Prix and the long Thanksgiving holiday weekend. These marquee occasions typically draw hundreds of thousands of spectators, pumping millions of dollars into the local economy across hotels, restaurants, casinos, and entertainment venues.

The city is banking on these high-profile events to reinvigorate demand, especially as the winter season approaches and tourism typically strengthens.

What’s Behind the Decline? The Summer Slowdown and Travel Trends

A combination of factors contributed to the prolonged slump in visitor numbers throughout 2025. Over the summer, tourists widely perceived Las Vegas as “overpriced”, prompting many potential visitors to reconsider or delay their trips. At the same time, the city experienced:

• Reduced demand from international travelers
• Fewer midweek stays
• Declines in conventions and business travel

However, October provided a glimpse into how business travel might help stabilize tourism. Major conferences such as Oracle CloudWorld, which attracted around 30,000 attendees, boosted midweek visitor numbers and demonstrated the key role corporate events play in sustaining the city’s tourism ecosystem.

Drop in Visitors from Key Regions

Several regions that typically drive strong visitor numbers to Las Vegas saw significant declines this year:

• California, historically Las Vegas’ largest feeder market, saw a notable drop in travel. Cars along the I-15 from California fell by 4.3% in June, reflecting decreased statewide travel interest.
• Canada, another vital source of tourists, saw lower visitation due to economic uncertainty and political shifts affecting outbound travel.
• The Midwest also showed declines, though less severe than other regions.

These downward trends collectively contributed to reduced foot traffic across the city’s resorts, attractions, and entertainment venues.

Casinos Thrive Despite Fewer Tourists

Interestingly, despite fewer visitors, casino revenues continue to climb. Casinos on the Las Vegas Strip posted an 8.2% increase in gaming revenue, driven by:

• Increased spending per visitor
• A higher proportion of high-value players
• Favorable outcomes at casino tables
• The enduring appeal of games like baccarat, which continues to draw major spending despite tourism fluctuations

This suggests that Las Vegas is attracting fewer—but wealthier—tourists, helping offset some losses in visitor volume.

Tourism Forecast: Signs of Recovery Ahead

Tourism analysts at the University of Nevada, Las Vegas, report that although the city may experience continued mild economic contraction through 2026 and 2027, a broader recovery is expected. Their projections indicate that Las Vegas could welcome over 40 million visitors in 2026, which is a full million more than 2025—though still not fully restored to pre-pandemic highs of 42 million visitors.

Forecasts hinge on global stability, with analysts noting that the tourism rebound is dependent on:

• No new severe COVID-19 variants
• Avoiding major financial crises
• Stability in global conflicts and economic conditions

If these conditions hold, Las Vegas may achieve steady, if gradual, tourism growth.

Resort Investments Signal Confidence in Las Vegas’ Comeback

Major Las Vegas resorts are proactively investing to attract visitors in a competitive environment. Notable efforts include:

• MGM Resorts investing $300 million in updated room renovations to enhance guest appeal
• Caesars Entertainment launching major discounts and promotional offers to boost occupancy

These aggressive moves underscore the industry’s confidence in a future rebound and reflect an understanding that travelers are increasingly seeking value, comfort, and curated experiences.

Visitor Numbers Still Lagging but Improving

By the close of October, Las Vegas had reached just over 30 million visitors for the year—still notably below targets but showing gradual month-to-month improvement. The city continues to focus on diversifying its attractions, improving pricing perceptions, and hosting major sporting and entertainment events to stimulate demand.

Las Vegas Pushes Toward Recovery

Although Las Vegas is still going through an undulating tourism landscape, the signs of recovery are steadily making themselves seen. Coverting the decried vertical drops is the return of scheduled major events, and hopefully, along with strategic investments and enhanced business travel, prolonged declines from the events of the previous year will become a distant memory. With the value and experience of upcoming attractions being balanced and optimized, Las Vegas will be able to reclaim and maintain its momentum for a prosperous year ahead from both international and domestic travelers.