Las Vegas is famous for neon lights, casinos, and many attractions. But the city faced a hard year in 2025. Visitor numbers dropped more than any year since the COVID-19 pandemic. The Las Vegas Convention and Visitors Authority (LVCVA) reported a 7.5% decline compared to 2024.
This drop meant roughly 3.1 million fewer visitors. The total fell to about 38.5 million for the year. This was the lowest number since the recovery began. The LVCVA started tracking statistics in 1970. Since then, this was the sharpest drop outside of the pandemic years. It shows the challenges for a city that depends on tourism money.
December 2025 usually brings holiday crowds, but the slump was clear. Visitor volume fell 9.2% from the year before. Hotel numbers suffered too. The average daily rate (ADR) dropped 5.1%, and occupied room nights decreased 7.3%. Revenue per available room (RevPAR) fell 11.8% compared to December 2024.
Hotel performance followed this pattern for the full year. Occupancy declined by 3.3 percentage points to 80.3%. ADR fell 5%, and RevPAR decreased 8.8% from 2024 levels.
The impact went beyond hotels. Harry Reid International Airport saw passenger numbers drop about 6% in 2025. The total was nearly 55 million. This was the third-highest annual total ever, but it was down from the 2024 peak. December airport traffic fell 10.3%, and international arrivals dropped the most.
Business tourism stayed stable. About six million convention attendees came, which nearly matched the prior year. But leisure travel supports the economy, and it weakened. Prices remained high. Consumers in the U.S. watched their budgets and chose cheaper options. Economic doubt also played a role.
A big cause was the drop in international visitors. This was true for Canada, which is the largest foreign market for Las Vegas tourism. Canadian arrivals to the U.S. fell about 22-25% in 2025. Some data show bigger drops in early 2026. Trade tensions caused this. The Trump administration set high tariffs. There were also statements about making Canada the 51st state. These issues made many Canadians cancel trips or go elsewhere. They chose spots within Canada, Europe, Mexico, or the Caribbean. In January 2026, Canadians returning from the U.S. dropped 24.3% compared to the year before. Other international returns rose during that time.
MGM Resorts and Caesars Entertainment reported lower profits and revenues in Las Vegas. Caesars noted a 20% drop in profits.
Airlines cut flights. U.S. carriers planned 7% fewer seats to Las Vegas in the first quarter of 2026. Major Canadian airlines reduced capacity by 30%. They expect demand to stay low.
Las Vegas started its first city-wide ad campaign in 2025 to bring people back. Industry experts think the city needs to do more. Hotels may need to lower prices on rooms and experiences to get visitors back.
Andrew Woods, the director of the Center for Business and Economic Research at the University of Nevada, noted that the trend shows U.S. consumer caution rather than a total economic crash. "Budget-conscious travelers are choosing other destinations," the expert said.
Las Vegas starts 2026 with challenges. Economic pressures and political issues affect travel. However, it has a strong convention sector, and it can help to adapt and recover. The city may need stronger marketing and good value deals to grow again.
