Las Vegas, often seen as a bellwether for the travel industry, is currently grappling with a significant decline in international visitation.
This downturn began in March, coinciding with rising tariffs and President Donald Trump’s contentious rhetoric towards Canada.
What started as a decline on the Strip is now reflected across the tourism landscape, signaling broader issues within the national travel sector.
Industry experts indicate that Las Vegas tourism and consumer spending are likely to continue their downward trend throughout the summer months.
A recent warning from tourism professionals highlighted two critical factors contributing to this decline: increased fees on nonimmigrant travel visas and an 80 percent cut in federal funding for programs that encourage international travel to the U.S.
Both measures are part of the Trump administration’s “Big, Beautiful Bill,” which could have long-term adverse effects on visitor numbers.
Geoff Freeman, CEO of U.S. Travel, emphasized that the benefits gained from previous investments in Brand USA, which promotes international visitation, are threatened by these recent cuts.
He articulated concern that rising fees could deter foreign travelers already wary of America’s welcome environment and escalating prices.
These policy changes may also impact the U.S. as it gears up to host the FIFA World Cup in 2026 and the Summer Olympics in Los Angeles in 2028.
While Las Vegas is not a host for the World Cup, it stands to gain from the influx of visitors from nearby destinations like Los Angeles and the Bay Area.
Despite the current challenges, leaders within the Las Vegas resort industry maintain a degree of optimism.
As reported, tourism volume on the Strip has decreased by 6.5 percent through May, equating to over 1.2 million fewer visitors compared to last year, according to the Las Vegas Convention and Visitors Authority.
Barry Jonas, a gaming analyst at Truist Securities, noted that executives from 11 major gaming companies—including MGM Resorts International and Caesars Entertainment—reported no fundamental issues affecting consumer behavior.
Jonas indicated that room bookings on the Strip are showing signs of improvement as the fall approaches, following a turbulent summer.
MGM is currently in the midst of a multimillion-dollar renovation of the MGM Grand, anticipating an uptick in business trends by year-end.
However, Strip gaming revenue has seen a decline of over 1 percent in the first five months of 2025, including a 3.3 percent drop in May.
Average daily room rates have dropped nearly 5 percent, with hotel occupancy decreasing by more than 1 percent during this period.
Concerns remain about international visitation through Harry Reid International Airport, with the Clark County Department of Aviation reporting a downturn in passenger numbers.
International passenger counts, which had exceeded 3.2 million in 2024, are declining, reflecting a downward trend for the last four months.
Significant year-over-year declines were recorded in May by the three Canadian airlines that provide direct flights to Las Vegas, with Air Canada down almost 22 percent, Flair seeing a 64 percent drop, and WestJet experiencing a 34.6 percent decrease.
The department is set to release June passenger totals at the end of July, with expectations of another decline.
The National Travel and Tourism Office reported a 1 percent decrease in international airline passengers in June, with non-U.S. citizens visiting the U.S. down by more than 6.6 percent compared to June 2024.
Overall passenger numbers at Reid Airport have declined by almost 3.7 percent through May.
Despite the dip in Canadian visitation, MGM executives indicated that visitors from other countries continue to arrive in Las Vegas.
In a related development, Sen. Todd Young (R-IN) recently blocked a motion by Sen. Catherine Cortez Masto (D-NV) for unanimous consent in the Senate to reverse a tax code adjustment affecting gamblers’ deductions on losses, reducing the allowance from 100 percent to 90 percent.
Young proposed that the Senate consider his bill exempting religious-based colleges from an endowment tax in exchange for supporting Cortez Masto’s bill, which was viewed as an unrelated issue by the Nevada senator.
Sen. Ron Wyden (D-OR) expressed support for the gaming tax adjustment but did not agree with the proposal regarding religious schools, effectively ending the debate.
Young may have collateral damage to consider back home, where Indiana generates nearly $3 billion in gaming revenue and ranks as the seventh-largest gaming state in 2024 per the American Gaming Association.
Indiana hosts 13 casinos, seven of which are operated by major companies such as Caesars Entertainment, Boyd Gaming, and Full House Resorts.
Cortez Masto criticized the failure to pass the gaming tax amendment as a “shame,” noting that it was being obstructed by unrelated proposals.
A few days prior, Rep. Dina Titus (D-NV) introduced a bipartisan measure in the House aimed at addressing the gambling withholding tax issue.
In the realm of sports, the NBA made its annual Summer League debut in Las Vegas, showcasing an opening night match that was aired live on ESPN featuring the Dallas Mavericks, owned by the Miriam Adelson family, and their No. 1 draft pick, Cooper Flagg.
Patrick Dumont, the Cowboys’ governor and CEO-in-waiting of Las Vegas Sands, was present at the Thomas & Mack Center for the game.
Just a day before this event, the outlook for an NBA-ready arena in Las Vegas, which was in discussions for an anticipated expansion team, faced hurdles when Tim Leiweke, CEO of Oak View Group, was indicted on a federal conspiracy charge related to decking a bid for a University of Texas basketball arena.
Despite Leiweke’s denials of the allegations, he stepped down as CEO and took on a vice chair role within the company.
Oak View has been looking to establish a 20,000-seat NBA facility in Las Vegas since 2022, although the primary location on the south end of the Strip fell through earlier this year.
They have since considered a new site at the Rio Las Vegas, as well as land on the north Strip associated with Resorts World Las Vegas.
In light of these developments, the NBA and Las Vegas face an uncertain future.
The Sporting Tribune has listed both Las Vegas and Seattle as prime candidates for NBA expansion teams.
The NBA’s board of governors is expected to discuss expansion topics in their upcoming summer league meetings, although some franchise owners are hesitant about immediate expansion plans.
Vegas Golden Knights owner Bill Foley proposed to share the T-Mobile Arena, a 20,000-seat venue that opened in 2014, with an NBA team, suggesting a $300 million investment for upgrades to the facility.
Foley made these comments in an interview on Nevada Week on Vegas PBS, where he discussed his vision for the arena’s potential future as a multi-sport venue.
The T-Mobile Arena, which was co-financed by entertainment powerhouse AEG and MGM Resorts International, originally cost $375 million to build.
In other industry news, Caesars has launched a mobile wallet application aimed at sports betting customers to enhance their experience.
This upgrade to the Caesars Sportsbook platform allows users from states outside of Nevada to manage funds and rewards seamlessly while visiting Caesars properties in Las Vegas, Reno, Laughlin, and Lake Tahoe.
The mobile wallet works across 19 states where Caesars operates sports betting, enabling Nevada customers to transfer funds when visiting those states.
Furthermore, the American Gaming Association has announced the 2025 Gaming Hall of Fame class, set to honor three individuals at the Global Gaming Expo in October at The Venetian Expo.
The honorees include financial executive David Berman, who has led over 100 mergers and acquisitions valued at $125 billion; Ann Simmons, recognized for her work in strategic planning and consulting; and Charlie Lombardo, a veteran slot machine executive who has played pivotal roles in several prominent casinos.
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