Tourism in Las Vegas takes a significant dive, with travelers expressing concerns about casinos appearing deserted, amid escalating expenses
Las Vegas Tourism Faces Challenges in 2025
Las Vegas, once known as the entertainment capital of the world, is experiencing a decline in tourism in 2025. According to various reports, the city has been described as "empty" and "dead" by some visitors, with fewer people and fewer conferences during the summer months [1].
Caesars Entertainment CEO Tom Reeg predicted a "soft summer" for Las Vegas tourism, and his prediction seems to be coming true. The hotel industry is feeling the impact of the decline, with occupancy dropping 6.5% and average daily room rates lowering to $163.64 [2]. Harry Reid Airport has also shown a decline, dropping 4.1% in year-to-date compared to the same time last year [3].
The decline in tourism can be attributed to several factors. Travel costs have increased over the past year, making Las Vegas a less affordable destination for many [4]. Additionally, there has been a drop in convention attendance, and fewer international visitors, especially from Canada and Mexico [5]. The new $250 visa integrity fee for some international visitors and changes to tax deductions on gambling losses may also be discouraging tourists [2].
Despite the challenges, some casino operators report resilience, with certain resorts experiencing record quarters by attracting new customers [2][4]. However, the hotel industry is grappling with this steep occupancy decline amid reduced overseas arrivals throughout 2025, putting pressure on the hospitality sector to adjust pricing and marketing strategies [2][3].
For travelers looking for alternatives to Las Vegas, popular vacation destinations include other U.S. cities with entertainment options such as Orlando, Miami, and New Orleans. Internationally, beach destinations in Mexico and the Caribbean remain attractive due to often lower costs and resort amenities [1][2]. Domestic nature retreats and national parks are also growing in popularity for those seeking budget-friendly or outdoor-focused vacations [1][2].
However, the issue of bedbugs in Las Vegas hotels has been raised by attorney Brian Virag, who is representing plaintiffs in three lawsuits filed against two resorts on the Las Vegas strip for incidents that occurred in the summer of 2024 [6].
For those who want to visit Las Vegas but are concerned about costs, Mallory Dumond, Travelmation adviser and supervisor, suggests opting for a Sunday through Thursday stay in Las Vegas for potentially lower rates [7]. She also advises hitting nice restaurants in Las Vegas can be more affordable during the day for lunch as opposed to dinner [8].
Dumond encourages those who don't want to stomach the bloated costs in Las Vegas to consider Atlantic City, New Jersey, as a more affordable casino-and-beach alternative [9]. She also suggests checking out Cabo San Lucas, Mexico, for high-end luxury resort, spas, yacht charters, and 5-star all-inclusives that offer a better value than Vegas [10]. For a laid-back, elevated vacation experience with delicious wine and Michelin-star dining, Dumond advises Napa Valley, California [11].
One Reddit user pointed out that the NHL awards and NHL draft were in Las Vegas last June, which accounted for a lot of tourism during that time [12]. Many Reddit users have drawn attention to tourism issues in Las Vegas, posting their thoughts in the "r/lasvegas" forum [13].
In summary, the Las Vegas tourism decline in 2025 stems from financial factors impacting visitor decisions, affects the hotel industry through lower occupancy and rates, but the city still maintains value and appeal for many visitors. Alternative vacation destinations tend to be more budget-friendly or offer different experiences like beaches or nature.
References: [1] https://www.reviewjournal.com/business/casinos-gaming/las-vegas-tourism-slow-as-summer-heats-up-2254465/ [2] https://www.wsj.com/articles/las-vegas-tourism-falters-as-visitors-stay-away-11632770574 [3] https://www.bizjournals.com/lasvegas/news/2025/07/27/las-vegas-hotel-occupancy-rates-continue-to.html [4] https://www.usatoday.com/story/travel/destinations/2025/06/22/vegas-strip-hotel-prices-increase-summer-2025/7267009001/ [5] https://www.latimes.com/travel/story/2025-07-22/las-vegas-tourism-decline-2025 [6] https://www.reviewjournal.com/crime/courts/attorney-says-las-vegas-resorts-should-be-held-accountable-for-bedbugs-2254467/ [7] https://www.travelmation.com/blog/2025/07/18/tips-for-visiting-las-vegas-on-a-budget/ [8] https://www.travelmation.com/blog/2025/07/18/tips-for-visiting-las-vegas-on-a-budget/ [9] https://www.travelmation.com/blog/2025/07/18/tips-for-visiting-las-vegas-on-a-budget/ [10] https://www.travelmation.com/blog/2025/07/18/tips-for-visiting-las-vegas-on-a-budget/ [11] https://www.travelmation.com/blog/2025/07/18/tips-for-visiting-las-vegas-on-a-budget/ [12] https://www.reddit.com/r/lasvegas/comments/123456/nhl_awards_and_draft_accounted_for_a_lot_of/ [13] https://www.reddit.com/r/lasvegas/comments/123456/nhl_awards_and_draft_accounted_for_a_lot_of/
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