Hotel occupancy rates in Las Vegas have declined to approximately 66.7% in July compared to the same period last year

Tourism in Las Vegas has taken a noticeable hit in the first half of 2025. According to the Las Vegas Convention and Visitors Authority (LVCVA), overall visitation to the city is down more than 6%, with April alone seeing just over 3.3 million visitors — a 5.1% decrease compared to the same month last year. Similarly, Harry Reid International Airport reported 4.7 million passengers in April, marking a 3.4% year-over-year decline. International arrivals in June dropped more than 13%, while domestic travel fell 6.5%, based on data from CoStar.

The downturn has impacted the city's service workers, many of whom had anticipated a boost from President Trump’s recent move to eliminate taxes on tips. The measure, included in the recently signed “Big Beautiful Bill,” exempts up to $25,000 in annual tips from personal income taxes, retroactive to January. However, with fewer tourists, tip-based income has still dropped sharply. Jacob Soto, a 22-year-old supervisor at Pinkbox Doughnuts, told the Journal that his weekly credit-card tips have fallen from $175–$200 to $100–$150 — not enough to supplement his $15/hour base pay. “I kinda rely on tips at the end of the day,” he said.

Hotel occupancy also reflects the city’s slowdown. Rates in early July hovered around 66.7%, a significant drop from the same time in 2024. The Strip, typically lively and bustling, now feels noticeably emptier. Tourists are increasingly deterred by rising costs, including high resort fees. “Vegas is not fun anymore,” said Amrita Bhasin, a retail entrepreneur, who noted hotels often tack on fees as high as $50 per night, making visits even more expensive.

The higher prices are affecting tourists’ behavior as well. Wally Weidner, a 67-year-old visitor from Wisconsin, said he’s rethinking how much he tips. “Just because prices went up doesn’t mean I should pay more tip,” he said. Menu prices have surged across the city — at Mon Ami Gabi on the Strip, a cheeseburger and fries now costs $30.95 before tax and tip, nearly double the $16.95 price from four years ago.