Las Vegas Sees a Steep Drop in Summer Tourism, With International Visitor Numbers Dwindling Amid Trade Tariffs and Immigration Policy Shifts Under the Trump Administration

Published on August 19, 2025

Las Vegas, long renowned for its vibrant nightlife, luxury resorts, and world-class entertainment, has witnessed a steep decline in summer tourism, with international visitor numbers falling sharply. The shift can be largely attributed to a combination of factors, including the imposition of trade tariffs and sweeping changes in immigration policies during the Trump administration. These policies created barriers for potential travelers, especially from key international markets, resulting in a noticeable dip in the volume of tourists. As Las Vegas relies heavily on international tourism, these shifts have disrupted its tourism sector, posing challenges for businesses that thrive on global visitors.

Tourism in Las Vegas Faces Challenges Amid Economic Shifts: What’s Behind the Decline?

Las Vegas, the entertainment capital of the world, is experiencing a noticeable downturn in tourism this summer. Known for its extravagant casinos, world-class dining, and nonstop entertainment, the city has traditionally been a go-to destination for tourists from around the globe. However, recent trends show a significant drop in visitor numbers, particularly from international markets. This decline has raised concerns among local officials and businesses, who attribute it to several factors, including the economic repercussions of the Trump administration’s trade tariffs and immigration policies.

A Decline in Visitor Numbers: The Numbers Speak for Themselves

Las Vegas has always been synonymous with bustling resorts, exciting nightlife, and gaming experiences that attract millions of tourists every year. However, recent data paints a less-than-rosy picture for the city’s tourism industry. According to the Las Vegas Convention and Visitors Authority, just under 3.1 million tourists visited the city in June 2025. This marks an 11% decrease from the same time last year, highlighting a noticeable dip in tourism.

The biggest hit appears to be from international visitors, who accounted for a 13% drop in numbers. The decline in international tourism has particularly impacted hotel occupancy rates, which have fallen by approximately 15%. With fewer people visiting, local businesses and resorts are feeling the effects, as the city relies heavily on tourism to fuel its economy.

The Economic Influence of Trade Tariffs and Immigration Policies

Local officials and economists point to several key factors behind the downturn, with a significant portion of the blame being placed on the economic impacts of the Trump administration’s trade tariffs and immigration policies. These policies led to a strain on international trade and created uncertainty in the global economy. As a result, many foreign visitors have cut back on discretionary spending, which includes travel to places like Las Vegas.

Additionally, tighter immigration restrictions have made it more difficult for international tourists to visit the U.S. These factors have not only impacted Las Vegas but also several other cities that rely heavily on international tourism. While domestic tourism continues to be a driving force, it hasn’t been enough to offset the loss from international travelers.

Airline Traffic Declines: A Signal of Broader Issues

The drop in tourism numbers is also reflected in the performance of airlines flying into Las Vegas. Data from Canadian airlines shows a sharp decline in passengers traveling to Las Vegas’ Harry Reid International Airport. In June 2025, Air Canada saw a staggering 33% decrease in passengers compared to the same period last year, while WestJet experienced a 31% drop. Perhaps most alarming of all was the news that budget airline Flair Airlines reported a 62% reduction in passenger traffic.

These figures suggest that fewer international travelers are making their way to Las Vegas, with the rising cost of international flights and travel restrictions likely contributing to the drop in passengers.

Las Vegas Drops in AAA’s Labor Day Rankings

The decline in tourism is also reflected in Las Vegas’ drop in AAA’s annual ranking of top Labor Day destinations. In 2024, Las Vegas ranked sixth, but this year, the city fell to the very bottom of the list. The shift indicates that more travelers are opting for other popular destinations like Seattle and Orlando, Florida, which remain in the top two spots, with New York City climbing to third.

While this ranking shift could be due to various factors, including the rising costs of accommodations and entertainment in Las Vegas, it also highlights the growing competition from other cities that offer similar experiences at more affordable prices.

A Silver Lining: Local Gems Still Thriving

Despite the reports of declining tourism, not all aspects of Las Vegas are feeling the effects of this downturn. Some attractions are bucking the trend, continuing to draw visitors and maintain strong traffic numbers. One such example is the Pinball Museum, located just off the main Strip. Despite the broader decline in tourism, the museum continues to thrive, offering a collection of classic pinball machines dating back to the 1930s.

According to Jim Arnold, the museum’s manager, it has remained “recession-proof,” thanks to its free admission and parking, making it an affordable alternative for visitors looking for something unique to do in the city. The museum’s success showcases that while tourism in Las Vegas may be facing challenges, certain niches continue to attract visitors seeking authentic, non-commercialized experiences.

The Road Ahead for Las Vegas Tourism

As Las Vegas continues to adapt to the shifting tourism landscape, the city must look to diversify its offerings to ensure its long-term success. While it has always been a hub for high-end casinos and entertainment, the decline in international tourism signals the need for a more comprehensive strategy that appeals to a broader audience.

From strengthening domestic travel incentives to promoting off-the-beaten-path attractions, Las Vegas could benefit from creating a more varied and accessible tourism experience. By reimagining itself as a city that can cater to all types of travelers, from budget-conscious tourists to high rollers, Las Vegas may be able to recover from this summer’s downturn and regain its spot as a leading global destination.

Las Vegas has experienced a significant drop in summer tourism, particularly from international visitors. The decline is linked to trade tariffs and changes in immigration policies under the Trump administration, which created barriers for travelers, especially from key international markets. This downturn has posed challenges for the city’s tourism-dependent economy.

In conclusion, while Las Vegas faces a temporary setback in its tourism industry, it is important to recognize the resilience of the city. The downturn in international visitors, coupled with the challenges presented by economic policies, has created a tough environment for the city. However, Las Vegas has faced challenges before and has always managed to bounce back. With the right strategies and a bit of innovation, the city is likely to continue being a top destination for travelers around the world.