Las Vegas Tourism Takes a Hit in 2025, As Fewer Visitors and Lower Hotel Revenues Impact the City

Published on February 26, 2026

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Las Vegas, a city that thrives on tourism, saw its biggest decline in visitors since the pandemic in 2025, as the total number of visitors dropped by approximately 3.1 million. This decline brought the number of visitors to around 38.5 million for the year, the lowest since the recovery from the pandemic began. According to data from the Las Vegas Convention and Visitors Authority (LVCVA), which has been tracking statistics since 1970, this represents the sharpest drop in visitors outside of the pandemic years, highlighting the ongoing challenges faced by a city that heavily depends on tourism revenue.

The sharp downturn in visitor numbers was most noticeable during December 2025, a month that typically sees an influx of holiday crowds. However, despite the usual surge in visitors, the slump in travel was clear, with visitor volume falling by 9.2% compared to the previous year. This was a significant blow to the city’s tourism and hospitality sectors, as Las Vegas continues to rebuild and stabilize post-pandemic.

Decline in Hotel Performance: Occupancy, ADR, and RevPAR All Drop

As expected, the decline in visitors had a direct impact on Las Vegas hotels. In December 2025, key performance metrics like the average daily rate (ADR), revenue per available room (RevPAR), and hotel occupancy saw significant drops. The ADR fell by 5.1%, while the number of occupied room nights decreased by 7.3%. Meanwhile, RevPAR experienced an 11.8% drop compared to December 2024.

This pattern continued throughout the year. Hotel occupancy dropped 3.3 percentage points to 80.3%, while the ADR fell by 5%, and RevPAR decreased by 8.8% from 2024 levels. The drop in hotel performance is one of the most critical indicators of the downturn in Las Vegas’ tourism market, as hotels are the city’s primary revenue generators. Lower occupancy rates and decreased spending per guest suggest that fewer people are opting for longer stays or higher-end experiences.

Air Travel Decline: Harry Reid International Airport Sees Fewer Passengers

The effects of the tourism downturn were also evident in air travel. Harry Reid International Airport, one of the busiest airports in the U.S., saw passenger numbers drop by about 6% in 2025, despite a total of nearly 55 million passengers, making it the third-highest annual total ever recorded at the airport. However, this was still a decline from the record peak seen in 2024. Furthermore, December 2025 airport traffic experienced a 10.3% drop, with international arrivals seeing the steepest decline.

The airport’s struggles with lower international traffic reflect broader trends in global travel, where several countries and regions saw a decline in outbound travel due to economic factors and shifting travel patterns. Canada, in particular, experienced a sharp fall in travelers heading to the U.S. In 2025, Canadian arrivals to the U.S. dropped by 22-25%, with some data showing even larger drops in early 2026.

Factors Affecting the Decline: High Prices, Economic Uncertainty, and International Tensions

The sharp decline in international visitors, especially from Canada, can be attributed to a variety of factors. Economic uncertainty, high travel prices, and political tensions between the U.S. and Canada have all contributed to fewer Canadians traveling to Las Vegas. Trade tensions and public statements regarding Canada’s status in relation to the U.S. (such as discussions about turning Canada into the 51st state) have further complicated relations, prompting many Canadians to reconsider or cancel their trips to the U.S. In January 2026, Canadian returns from the U.S. dropped 24.3% compared to the same period in 2025.

In addition to political and economic reasons, higher travel costs and ongoing inflation in the U.S. have led many tourists to seek more affordable travel options. With the cost of flights, accommodations, and daily expenses on the rise, travelers are opting for destinations that fit better within their tighter budgets.

Business Tourism Holds Steady, But Leisure Travel Struggles

Despite the challenges in the leisure travel sector, business tourism remained relatively stable in 2025. Approximately six million convention attendees visited Las Vegas, almost matching the previous year’s numbers. However, as leisure travel continues to support the city’s tourism economy, its recent decline has highlighted the importance of price sensitivity and consumer budget-consciousness.

Las Vegas Tourism’s Road to Recovery: A Changing Landscape

While the drop in visitor numbers is a setback for Las Vegas, there are still opportunities for recovery. The city’s convention and business tourism sectors are holding strong, providing stability to the broader economy. At the same time, there is increasing attention on local tourism efforts to attract visitors, including targeted campaigns to promote cultural events, dining experiences, and unique entertainment options.

As international tensions ease, travel restrictions relax, and inflationary pressures ease, Las Vegas may see a resurgence in leisure travelers. Moreover, a focus on providing more affordable travel packages could help the city tap into new demographics of visitors.

For tourism professionals and visitors looking to explore Las Vegas in 2026, understanding the current trends and planning will be key to navigating the tourism landscape.