Las Vegas Continues to Lose Customers Due to Pricing and Policies

In June, Southern Nevada experienced its sixth consecutive monthly drop in visitation, marking the first double-digit percentage decline since February 2021. This trend has continued throughout the summer, and many are wondering why there are fewer and fewer tourists visiting Las Vegas. 

Las Vegas Continues to See Less Visitors

The Las Vegas Convention and Visitors Authority (LVCVA) is set to release July’s visitation data this week, but early signs suggest it will be no improvement over the previous six months. Hotel occupancy has declined by 2.1 percentage points to 78.9%, while the average daily room rate has dropped 5.5% to $185.24. Passenger traffic at Harry Reid International Airport is down 4.1% and has decreased every month since January. Additionally, revenue per available room, a key measure of profitability that includes both gaming and non-gaming income, has fallen 7.6%.

Year-to-date, visitation has declined each month compared to last year, averaging a 7.3% drop and totaling 19.6 million visitors so far. In June, nearly all tourism metrics saw declines, except Clark County’s gaming revenue. This has already had a significant impact on the local economy, as the Las Vegas Strip gaming revenue has dropped significantly this summer.

Overpricing Might Be to Blame

Leora Azoulay, president of Incentives by Design Inc. in Las Vegas, attributes the downturn to resort executives who remain inflexible on pricing, despite growing consumer frustration over the high cost of everything from hotel rooms to beverages. In an interview, Azoulay noted that several industry professionals support implementing some form of moratorium on resort fees. She emphasized the importance of doing whatever it takes to bring visitors back, pointing out that there is currently a widespread perception that Las Vegas is overcharging its guests.

The perceived overpricing seems to be supported by a recent X poll that shows almost 90% of people think Vegas is too expensive for tourists.

Azoulay observed that it’s widely reported that Las Vegas is currently struggling, with a significant decline in tourism. While acknowledging there may be political factors involved, she emphasized that visitors are feeling burned out, noting that each time resort fees increase, the level of service appears to decline.

Falling Service Quality and the Political Side of Things

Speaking of lowering services, Azoulay’s words seem to be supported by Lena Napoleone, general manager of New York-based Gastaldi USA Inc. The company specializes in creating customized travel itineraries, particularly for European visitors, and Napoleone says that one of the biggest difficulties she has is explaining to her foreign clients exactly what a resort fee pays for when they’re charged.

Napoleone criticized the widespread practice among US hotels of adding resort fees, calling many of the included charges unreasonable. She pointed out that amenities like free local calls offer little value to international travelers and described such additions as somewhat insulting.

Finally, the lower number of Canadian tourists this year should also be mentioned as a factor playing in the diminished visitor numbers that Las Vegas is seeing currently. Tourism from Canada has slumped this summer as passenger arrivals on Canadian airlines saw a 33% decrease in passenger numbers compared to the same month last year. Meanwhile, WestJet saw a 31% decrease, while Low-cost carrier Flair reported a dramatic 62% drop.

One reason for the drop in Canadian tourists to the US could be because of President Donald Trump’s comments and policies towards the country, as he has already been blamed for the Vegas tourist slump. Canada is traditionally Las Vegas’ largest international market, so the recent tariffs that the president imposed on the US’s northern neighbors, along with his comments about Canada being the US’s 51^st state, have likely cooled Canadian’s enthusiasm for travelling to the country.