Visitors to Las Vegas fell 12 percent in July compared to the same time last year. It was the sixth month in a row, according to the Las Vegas Convention and Visitors Authority (LVCVA), that Sin City experienced a drop in visitation.
Key Takeaways
- Vegas tourism is declining amid a slowdown in international travel and more discerning domestic clientele.
- Gambling revenues were up slightly in July, even as hotel occupancy rates dropped.
- Vegas is hoping that events like the Sphere’s Wizard of Oz and F1’s Las Vegas Grand Prix will help buoy visitation.
For months, social media has been rife with posts declaring “Vegas is dead.” Along with a drop in international visitors, posters point out that rising resort fees, parking fees, and house advantage are making the gambling mecca less desirable.
Las Vegas casino revenues have been surprisingly resilient. Clark County casino revenues were up 3.24% in July, while the Strip raked in a 5.6% revenue increase, compared to July 2024. However, that was one of Las Vegas’ few silver linings. Hotel occupancy dropped to 76.1% in July versus last July’s 83.7%.
Meanwhile, RevPAR (Revenue Per Available Room) was $117.77 per day, down 12.1% from last July.
Overall, Las Vegas air travel was down 5.7% in July, with international travel down 3.8%. Canadian travel, however, has fallen off a cliff. America’s recent tariff policies have decidedly ticked off its neighbors to the north. Canadian airlines are reporting an 18% drop in passengers heading to Vegas.
LVCVA CEO Steve Hill noted, “A portion of our friends in Canada are not happy with us right now. We want them to come back, but we understand they may not be ready to do that.” Hill further acknowledged that Las Vegas was “going through a downturn,” but he was “confident in the future of this city.”
Despite his optimism, Hill has concerns about recent US policy changes that have the potential to further impact Vegas visitation.
Additional US policy headwinds
Recently passed legislation poses unique challenges for Las Vegas. Starting in October, international travelers applying for visas will be hit with an additional “integrity fee” of $250 per person.
Hill said, “You know, if you’ve got a family of four and you want to get a visa to come to the United States, it’s going to cost you about $1,150, and that’s reason enough for a lot of families not to come. And on top of that, it takes a long time to clear the visa process in those non-waiver countries.”
Meanwhile, the new legislation creates tax headaches for domestic gamblers. Gamblers used to be able to deduct 100% of their gambling losses from their gambling gains on their US tax returns. The new law only permits a deduction of 90% of gambling losses, meaning US gamblers could be paying taxes on money they did not win. Nevada’s representatives are seeking to restore the full gambling loss deduction.
In Sin City’s defense, the post-pandemic tourism boom makes comparisons difficult. And summer is notoriously slow for the desert resort town. That said, if numbers continue to languish in the fall, casino operators may need to revisit their ever-increasing fee models.
