Tourism leader in Las Vegas predicts continuous drops in tourist numbers and hotel occupancy before any recovery
Las Vegas, known for its vibrant tourism and hospitality industry, is currently grappling with a significant downturn in 2025. The commercial casinos and hotels are experiencing a notable decline, with visitor numbers dropping by approximately 6.5% through May, representing nearly 1 million fewer tourists compared to the same period in 2024.
This decrease is due to a combination of economic headwinds, global uncertainties, and reduced international travel. The impact on the sector is evident in the hotel occupancy rates and average daily room rates.
Hotel occupancy rates have dropped from 88.6% last year to around 85.5% through May and further to about 66.7% in early July, marking the steepest drop among the top U.S. tourism markets. For June 2025 alone, hotel occupancy fell by nearly 15%, with further declines reported into early July reaching around 17%.
The average daily room rates have decreased by about 5.5% compared to the previous year, reflecting weaker demand. The temporary closure of major properties like The Mirage and Tropicana has also reduced the available room supply. The decline in international visitors, especially a 13.2% decrease in June, has compounded these issues, affecting casino business and hotel stays in particular.
These statistics collectively indicate that Las Vegas is currently facing a tough environment in tourism and the hospitality sector. The Las Vegas Convention and Visitors Authority (LVCVA) expects visitation to be down even more year-over-year and revenue per room to see further erosion when the June numbers are released.
Despite these challenges, Las Vegas is well-positioned for the future, particularly starting in September with events like the Canelo Alvarez and Terence Crawford fight at Allegiant Stadium. The city is also preparing for the Formula One race, scheduled for the weekend before Thanksgiving, which is one of the slowest weeks of the year.
The LVCVA is focusing on a message to consumers that they can have a great time in Las Vegas on any budget. The CEO of LVCVA, Steve Hill, has spoken to commercial real estate executives about the decline in tourism and the city's overpricing concerns.
The Hard Rock resort under construction at the former Mirage site has a projected cost of $4 billion to $5 billion. The proliferation of gaming across the country and igaming is not seen as competition by Las Vegas, but rather as a predecessor for visitors aspiring to come to Las Vegas. Las Vegas remains unique in providing an escape and opportunity for celebration with intensity that cannot be replicated elsewhere.
References:
- Las Vegas Review-Journal
- CNBC
- Bloomberg
- Reuters
- USA Today
- The decline in the finance and gaming industry in Las Vegas, as apparent in the hotel occupancy rates and average daily room rates, can be attributed to the combined factors of economic instability, global uncertainties, and reduced international travel.
- In an attempt to mitigate the impacts on the Las Vegas tourism and hospitality sector, Steve Hill, the CEO of the Las Vegas Convention and Visitors Authority (LVCVA), has been communicating with commercial real estate executives, emphasizing the decrease in tourism and the city's pricing concerns, while also promoting that Las Vegas can offer a great time for visitors on any budget.
