For decades, Las Vegas has been a symbol of endless entertainment and economic resilience, a place where tourism drove growth even in uncertain times. But in 2025, cracks are showing. Visitor numbers are falling, long-standing businesses are shutting down, and locals are warning that the city is pricing itself out of reach for the very travelers who once kept it thriving.
Tourist Numbers Fall Sharply
The Las Vegas Convention and Visitors Authority recently reported that overall visitor volume is down more than 7 percent compared to last year, with June alone showing an 11 percent decline from the same month in 2024. International arrivals have been hit even harder, down around 13 percent. That drop has dragged hotel occupancy to its lowest level in years. If the trend holds, 2025 could mark the steepest annual decline in tourist arrivals since records began in the 1970s.
The High Cost of a Vegas Vacation
For many visitors, the issue isn’t just fewer events or international politics—it’s the price tag. Long-time Vegas regulars are increasingly frustrated by what they call “nickel-and-diming.” Everyday expenses that once seemed affordable are now driving sticker shock. Guests at major resorts have reported being charged $19 for bottled water, $57 to rent a kettle, and nearly $10 for a cup of coffee. Buffets that once symbolized value are now topping $100 per person.
Market analysts note that hotel rates are also up significantly, even as occupancy falls. The combination has pushed Las Vegas from being a playground for the average American traveler into territory more comparable to high-cost destinations like New York or San Francisco. As one hospitality professor put it, “We are a more expensive market now than we’ve ever been before.”
Events Can’t Fill the Gap
Las Vegas has always relied on conventions, sporting events, and headline entertainment to boost the economy. But this year, the calendar hasn’t provided the cushion many were counting on. With no Super Bowl or blockbuster convention to draw international crowds, hotels and casinos are struggling to offset the decline in everyday visitors.
Add in political and economic headwinds—ranging from U.S. trade disputes and tighter immigration policies to weaker exchange rates for foreign travelers—and the international market that once filled casino floors has thinned dramatically. Even Canadian tourism, historically the largest source of foreign visitors, has slowed to a trickle.
Workers and Local Businesses Feel the Pain
The slowdown isn’t just a problem for the casinos. Retailers, restaurants, and service businesses across Clark County are reporting weaker sales. Categories like food and beverage, apparel, and electronics have all posted declines this summer.
For workers, the downturn has been even more painful. Many tipped employees in restaurants, clubs, and casinos say their incomes have dropped by half or more compared to last year. Even with new tax exemptions designed to soften the blow, those reductions have left many struggling to make ends meet in a city where housing and living costs continue to rise.
The Closing of Icons
Perhaps nothing illustrates the turbulence better than the shuttering of two iconic properties. The Mirage, a Strip landmark since 1989, closed its doors in mid-2024, laying off around 3,000 workers. It is slated to reopen in 2027 as the Hard Rock Las Vegas. Not long after, the Tropicana closed entirely, with its site being redeveloped for a future stadium project.
These closures represent more than just business decisions. They mark the end of eras for institutions that helped shape Las Vegas’s identity. Their absence also ripples outward, hurting surrounding shops, restaurants, and service providers who relied on their steady stream of guests.
Downtown Shows Some Resilience
Not every part of the city is struggling equally. Downtown Las Vegas and the Fremont Street corridor have seen a modest rise in visitor traffic, with reports of up to a 6 percent increase. The appeal lies in lower-cost hotels, cheaper dining, and an atmosphere that feels closer to the “old Vegas” value tourists once loved.
Still, the question remains: can these gains downtown offset the dramatic declines on the Strip? For now, the answer looks uncertain.
A City at a Crossroads
Las Vegas is facing a pivotal test. Rising costs are alienating price-sensitive travelers, international tourism is faltering, and local businesses are caught in the squeeze. The closures of long-standing icons underscore that no brand is too big to fail in this new environment.
For decades, the city marketed itself as a place where everyone—from blue-collar workers to high-rollers—could find their version of fun. If Vegas is to weather this storm, it may need to rediscover that balance between luxury and accessibility. Otherwise, the flashing lights of the Strip risk shining over emptier sidewalks, fewer tourists, and an economy that no longer lives up to the city’s glittering image.
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