Las Vegas has captured the world’s attention and not for the usual reasons like the Strip, its casinos and even The Sphere and fascination about it.
It’s the continued monthly decline in tourism that has generated headlines across the globe and sparked debate about whether Las Vegas’ casinos are gouging its customers.
Posts about $26 bottles of water and expensive cocktails to go along with parking fees and resort fees that were added to the Las Vegas landscape over the last decade continue to fuel that narrative.
Tourism is down 8 percent for the year and the most recent report from the Las Vegas Convention and Visitors Authority showed a 12 percent decline in July. Nevermind, that gaming revenue on the Strip has held steady compared to last year. Las Vegas casinos that serve neighborhoods run by Station Casinos and Boyd Gaming continue to fare well and have seen year-over-year increases in gaming revenue, reflecting a different dynamic.
That’s playing out nationally where people appear to be staying closer to home rather than traveling and spending money at their local casinos.
Las Vegas has seen 2 million visitors fewer for the first seven months of the year compared to 2024 and the drop in hotel occupancy stands out in Las Vegas’ storyline, today. The July visitation was the lowest in that month since 2002.
Some resorts have laid off workers with the shortfall, but the casino industry and tourism officials aren’t panicking.
They are counting on a rebound this fall with the arrival of Las Vegas Raiders games at Allegiant Stadium and the crowds it brings. There’s a big fight this weekend that will be another draw.
Convention bookings for the fall and into 2026 are strong, according to casino executives. Some Wall Street analysts, however, are cautious on how quickly visitation can bounce back.
Barry Jonas, an analyst with Truist Securities, said given the latest numbers from Las Vegas and its room survey, investor expectations for the third quarter results are modest.
A report from J.P. Morgan shows Las Vegas Strip room rates down 12 percent on average during the fourth quarter of 2024 with December down 21 percent. Luxury demand on the weekend continues to fare the best. Room rate declines are an indication of lower demand and impact casino earnings.
The LVCVA has moved to change the global narrative by last week’s announcement of a $35 million national campaign to bring back visitors to Las Vegas. It started with an ad on the opening NFL game between Dallas and Philadelphia and includes billboards in Times Square in New York City and Sunset Boulevard in Los Angeles. The LVCVA has made sure to emphasize posting on its website some of the deals casino resorts are offering from discounted rooms to waiving resort fees in some cases.
LVCVA President and CEO Steve Hill has attributed the drop in visitation to the economy and people’s finances that has caused them to cut back on spending. A drop in Canadians traveling to Las Vegas has impacted that as well.
“You have seen a general downturn in tourism across the United States,” Hill said. “The core issue remains consumer sentiment. Our visitors might be worried about what happens with their job and financial situation, and that causes some hesitation in travel plans. Las Vegas is a very discretionary city and destination, particularly when we don’t have meetings in the summer and appointment visitation like your football or hockey team playing. The return of that in the fall is one of the reasons for our optimism.
“We don’t have a strong sports agenda and as strong a meeting agenda in the summer,” Hill said. “As we move into September, that starts to change. Two weeks from now we have the Canelo Crawford fight on Saturday and Raiders gaming on a Monday. Having those two things will start to make a difference.”
Hill addressed and discounted the negative headlines that paint the demise of Las Vegas as a tourist destination. He said convention business being up 2.1 percent over the year and how they are optimistic visitation will pick up over the next 16 months.
“I’m going to bet on Vegas,” Hill said. “Everybody knows that Las Vegas is the Entertainment Capital of the World. We still are. We’re all confident in the future of this city. We’re going through a downturn, and we’re not happy to be going through a downturn. We have met over the last couple of weeks with virtually every property across the destination. We’re excited about what we’re hearing, and we have some partnerships that we will be rolling out in the near future so stay tuned for that (for an ad campaign). The city is taking steps to address (the downturn).”
The LVCVA is spending $3.65 million to fund sporting events starting this year through 2020 as a way to bring in more tourists.
The NBA Cup returns to T-Mobile Arena in December for its third year. The LVCVA is also funding the return of early-season college football games from 2027 to 2030 after the successful 2024 game at Allegiant Stadium between LSU and USC.
The five football games are expected to draw more than 290,000 out-of-town visitors who will occupy more than 215,000 incremental room nights. The games will air live on ESPN.
Casino executives have been on the offensive to combat the narrative about Las Vegas and saying they’re doing their part to bring in more visitors.
Circa Resorts CEO Derek Stevens held an event Sunday night to talk about his promotion at the Golden Gate Casino that cuts into Las Vegas not offering value. Every night between 6 and 7 p.m., the Fremont Street casino will give free drinks and give away free play.
“I think the whole focus is on bringing value back,” Stevens said. “You can’t have more value than opening a bar and saying free drinks for everybody. I think things got a little too far away from what was acceptable for the tourists.”
Stevens declined to say resorts are price gouging customers but admits that some prices have gotten more expensive than they should. He said both value and the economy have contributed to the decline in visitation.
“Tourism is down in any tourist city you have, whether it’s Hawaii, San Francisco, Miami or Vegas. Tourism has taken a bit of a hit, which has something to do with the economy for sure,” Stevens said. “I also think maybe in specific situations the prices are just too high or flight costs are too high.”
Stevens said people are too quick to be negative about Las Vegas, which is coming off its best year in 2024. It’s not like 2025 has fallen off the cliff in terms of visitation as it has during recessions, he added.
“For historical purposes, this year instead of being great is going to be very good,” Stevens said.
Last week at a conference in New York, MGM Resorts International CEO Bill Hornbuckle debunked any suggestion that Las Vegas is dead and how they are countering any notion that customers are being gouged by cutting prices. He called Las Vegas fundamentals strong and expects improvement this fall and 2026.
“I read a headline the other day that Las Vegas is dead,” Hornbuckle said. “No, Las Vegas isn’t dead. We ran 98 percent this weekend. Full stop. We are not dead. We are far from dead. The drop off is at the lower end — the value-oriented folks who go to the Excalibur or Luxor. I will say this. We are putting on a push because we let the narrative get away from us in the context of value. We are putting out a push that Las Vegas is and remains a huge value for consumers at all levels.”
Hornbuckle said social media postings of $26 bottles of water and $12 Starbucks coffee don’t help and that MGM has been going through their prices to deal with that perception. Don’t, however, expect an end to resort fees and parking fees.
“Tonight, you can check in to New York New York or Excalibur for 85 bucks, including resort fee,” Hornbuckle said. “You can get a $5 beer and bet on a $5 table. We’ve looked at the marketplace, and we’re going to make a difference where the narrative is most important and where it helps.”
What will help change the narrative about Las Vegas visitation is events such as the return of the Raiders and concerts like Paul McCartney in October, Hornbuckle said.
“It goes on and on and continuing the fall event program with the convention foundation back in play will change the whole story,” Hornbuckle said. “We know our group business is strong in the fourth quarter and as strong as it has ever been in 2026 and 2027. We see what we’re booking today versus booked historically, and it’s bigger and better.”
Hornbuckle cited the bankruptcy of Spirit Airlines and its pulling back almost 400,000 seats as impacting summer visitation to Las Vegas and contributing to the current narrative.
“I think the overall dynamic and policy, if you think about visitation and people who are traveling and people who aren’t, driving traffic from Southern California has been meaningfully off. I know that the low-value market of Excalibur and Luxor has been impacted.”
