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Las Vegas experienced its lowest visitor count in four years during 2025, with tourism dropping to 38.5 million visitors, a 7.5 percent decline from the previous year, according to statistics released this week. Strip gaming revenue showed minimal growth, rising just 0.03 percent to $8.8 billion.
Tourism and gaming officials are eager to put 2025 behind them after a year marked by economic turbulence, a 43-day government shutdown, and a significant reduction in international visitors. Canadian tourists, in particular, stayed away amid boycotts of U.S. travel destinations.
“Despite a challenging environment, convention demand remained steady, the events calendar remained strong, and the destination continued to adapt in real time,” said Las Vegas Convention and Visitors Authority CEO Steve Hill in a statement. He characterized 2025 as one of the most complex operating periods Las Vegas has faced outside of the pandemic, with the destination developing a reputation for being overpriced as tourism declined during summer months.
The downward trend persisted throughout the entire year, with visitor numbers falling for 12 consecutive months. February, June, and July saw double-digit percentage drops. December’s 9 percent decline to just under 3.1 million visitors came as a surprise, considering the month featured major events including the sold-out National Finals Rodeo, two Las Vegas Raiders home games, and the Las Vegas Bowl on New Year’s Eve.
The convention sector showed resilience, with nearly 6 million attendees, almost matching 2024’s total. However, key hotel metrics suffered, with average daily room rates on the Strip falling almost 5 percent to below $200 per night. Strip hotel occupancy declined 3 percent, while revenue per available room—a key profitability indicator—dropped 8 percent to $163.52.
Truist Securities gaming analyst Barry Jonas noted that December’s disappointing results didn’t surprise the investment community, which had been monitoring Las Vegas’ challenges throughout the year. However, Macquarie Securities analyst Chad Beynon expressed concern that “softness from the international and leisure customer will persist this year.”
While the Strip struggled, Nevada as a whole achieved record gaming revenue of $15.8 billion, a 1.2 percent increase, with positive results from all other major markets in the state. Baccarat performance on the Strip was mixed, with December revenue falling nearly 21 percent to $156.7 million, though the full-year baccarat revenue increased 3.4 percent to $1.4 billion.
The Las Vegas locals market emerged as a bright spot in Southern Nevada’s gaming landscape. Downtown Las Vegas saw gaming revenue grow 2.1 percent to $951.2 million, while North Las Vegas increased 4.6 percent to $298 million. Laughlin posted a 2.4 percent increase to $493.6 million, Boulder Strip casinos jumped 3.8 percent to $996 million, and unincorporated areas of Clark County grew 1.2 percent to $1.9 billion.
Citizens Bank analyst Jordan Bender attributed some of December’s weakness to the timing of New Year’s Eve on a Wednesday but predicted a rebound for Strip resorts in January and throughout the first quarter of 2026.
Northern Nevada casinos also finished 2025 positively. Washoe County establishments generated nearly $1.1 billion in revenue, up 3.4 percent. Reno led with $786.2 million (3.6 percent increase), while Sparks casinos collected $182.2 million (2.6 percent increase). South Lake Tahoe casinos recorded $247.6 million in gaming revenue, a 1.5 percent increase.
Harry Reid International Airport reported its own challenges, with passenger volume declining for 11 consecutive months in 2025. The airport served just under 55 million passengers, a 6 percent decrease from the record 58.4 million in 2024. International passenger traffic fell 7 percent to 3.4 million, with December showing a concerning 22 percent decline—the fourth consecutive month of double-digit drops. Canadian carriers Air Canada and WestJet each experienced more than 20 percent passenger declines throughout the year.
Looking ahead, Hill expressed optimism for 2026. Las Vegas remains the U.S. market with the largest hotel room inventory, exceeding 150,000 rooms. The newly remodeled Las Vegas Convention Center has scheduled several major trade shows expected to bring a combined 1.2 million attendees, including CONEXPO, a major construction industry conference.
“Las Vegas operates at a scale that few destinations can match, and 2025 required us to remain nimble as conditions evolved,” Hill said, emphasizing the destination’s adaptability despite challenging circumstances.
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12 Comments
It’s interesting to see the gaming revenue growth was minimal, despite the tourism decline. This suggests the Strip’s casinos may need to rethink their strategies to better engage and retain customers.
Good point. The casinos may need to focus more on diversifying their offerings beyond just gaming to appeal to a broader range of visitors and boost revenue.
It’s concerning to see the downward trend persist for 12 consecutive months. This suggests deeper structural challenges that Vegas will need to address to reverse the decline. Diversifying the economy and finding new sources of growth will be crucial.
Agreed. The prolonged nature of the decline indicates a need for comprehensive, long-term strategies to revitalize the Vegas tourism and gaming sectors. Adapting to changing consumer preferences will be essential.
It’s concerning to see the tourism decline in Vegas, especially given the economic challenges the city has faced in recent years. Diversifying beyond gaming and finding new ways to attract visitors will be crucial for the Strip’s recovery.
Agreed. Vegas will need to get creative with its offerings to remain competitive as a destination. Focusing on conventions, entertainment, and non-gambling attractions could help draw more visitors.
The 43-day government shutdown must have had a significant impact on the Vegas economy. Reducing reliance on political factors and focusing on more sustainable drivers of tourism and gaming will be key for the city’s long-term resilience.
Definitely. Reducing vulnerability to external shocks like political events should be a priority for Vegas as it looks to stabilize and grow its tourism and gaming industries.
The CEO’s characterization of 2025 as one of the most complex operating periods for Vegas is telling. The city will need strong leadership and innovative thinking to navigate these challenges and position itself for a successful recovery.
Absolutely. Las Vegas will need to draw on its resourcefulness and adaptability to overcome the current difficulties and emerge as an even stronger destination. Collaborative efforts between industry, government, and the community will be key.
The reduction in international travelers, particularly Canadians, is a big hit for Vegas. With the city’s reputation for being overpriced, they’ll need to find ways to make it more affordable and accessible for a wider range of visitors.
Absolutely. Addressing the perception of Vegas as an expensive destination will be crucial. Offering more value-driven packages and promotions could help bring back international travelers.