Las Vegas Tourism Industry Hit by Immigration Enforcement

Nik Fes - Sep 01, 2025
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Las Vegas, usually brimming with tourists, now sees fewer faces, impacting both businesses and workers. The Las Vegas Convention and Visitors Authority (LVCVA) states that June 2025 saw an 11.3% dip in overall visitors compared to last year, while international arrivals dropped even more, by 13%.

Some call this the "Trump slump," pointing to policies from the Trump administration, like stricter immigration and trade tariffs, as reasons behind the fall. With fewer guests in hotels, conventions, and planes, those working in Vegas are feeling the pinch.

A Tourist Slowdown in Vegas

The LVCVA's numbers from June 2025 are not encouraging: about 3.1 million people came to Vegas, compared to 3.49 million the year before. International tourism, crucial for the city, fell by 13%. Canada, a major source of international visitors, saw significant declines, with Flair Airlines seeing a 55% drop and Air Canada a 13.2% drop from May to June. Less travel from Mexico and Southern California is also apparent. Hotel occupancy decreased to 82.9% from 85.3%, and conventions saw weaker attendance, indicating larger economic troubles for a city that relies on tourism for a quarter of its jobs.

Impact of the “Trump Slump”

Hospitality workers and their union representatives feel the Trump administration's policies have directly caused these issues. Ted Pappageorge, leading the Culinary Workers Union Local 226, representing 60,000 workers, remarked that discouraging international visitors has had clear effects. The union, with 45% immigrant members, notes growing concern among workers due to more immigration enforcement. Norma Torres, a housekeeper with DACA status, has experienced reduced hours and job cuts, worrying about her future employment and legal status in the U.S.

Adding to this, trade disagreements and changing tariff deadlines haven't helped relations with partners such as Canada. Also, a proposed $250 visa "integrity fee" and bonds between $5,000 and $15,000 for some visitors create financial and bureaucratic problems. As a result, some international visitors are choosing other destinations, like Mexico, which has recorded an 11.6% increase in Canadian tourists in 2025.

Economic Fallout and Worker Struggles

Fewer tourists negatively impact Las Vegas workers, especially those earning tips. Around 180,000 area workers rely on gratuities, but lower visitor numbers have led to reduced income. A tattoo artist, talking to the Wall Street Journal, mentioned that earnings fell from $3,000–$6,000 to $1,500 monthly due to the absence of Canadian clients, who once constituted 30% of his business. Layoffs at major resorts like MGM Grand and Fontainebleau, along with reduced hours for part-time staff, increase instability. Pappageorge said that 25% of unionized resort employees are part-time, making them more vulnerable to the slump and seasonal shifts.

The larger U.S. tourism industry is also suffering. The World Travel & Tourism Council (WTTC) predicts international visitor spending will fall by $12.5 billion in 2025, from $181 billion to $169 billion, a 22.5% drop. WTTC President Julia Simpson warned that while other countries are welcoming visitors, the U.S. is instead creating barriers, adding that recovery could take a while without efforts to rebuild trust among travelers.

Las Vegas Tourism at a Crossroads

The troubles in Las Vegas mirror a larger national trend, with the U.S. experiencing a $50 billion travel trade deficit as Americans spend more abroad than foreign visitors contribute. Businesses are reacting with some discounts as a result of the current visitor numbers. Brand USA's "America the Beautiful" campaign seeks to reignite global travel interest, especially through carefully crafted promotions. Yet, a substantial funding reduction, specifically from $100 million to just $20 million, presents considerable challenges in truly reversing current downward trends.

Moreover, the Culinary Workers Union is championing revised policies designed to ease stringent visa requirements and advocating for reduced tariffs. Their argument is that the hospitality sector—which includes a striking 25% immigrant workforce in Nevada alone—simply cannot operate effectively without genuinely inclusive policies. As Pappageorge stressed, "This industry cannot function without immigrant workers," thereby underscoring how current immigration enforcement actions negatively impact both tourists and the essential local workforce.

The Path Forward

Las Vegas's recent tourism downturn should serve as a clear signal. To facilitate a robust recovery, various stakeholders are actively pushing for simplified visa procedures, strategic diplomatic initiatives aimed at restoring trust with international allies, and sustained investments in crucial tourism infrastructure. The upcoming 2026 FIFA World Cup, along with the 2028 Olympics, presents distinct opportunities for a significant rebound; however, this potential depends critically on proactively addressing the underlying policies that are currently deterring visitors. For the immediate future, Las Vegas must contend with a tough recovery, with workers and businesses feeling the effects of a decline directly tied to national policy decisions.

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