Las Vegas is grappling with a decline in tourism due to economic uncertainties, with fewer visitors arriving compared to previous years. Rising prices and concerns over financial stability have caused many potential tourists to hold back. However, the city’s convention events have sparked a remarkable boost, driving a significant increase in visitor numbers and hotel revenue. These events have proven crucial in counteracting the downturn, filling midweek hotel rooms and contributing to the city’s overall recovery, underscoring the importance of conventions in maintaining Las Vegas’ tourism and hospitality industries.
Tourism in Las Vegas has been facing notable challenges, with recent reports highlighting a sharp decline in visitor numbers. In May 2025, the Las Vegas Convention and Visitors Authority (LVCVA) reported a 6.5% drop in tourism compared to May 2024, equating to around 3.4 million visitors. This continues the trend from April, which saw a smaller decline of 5.1%.
The downturn in tourism has been primarily attributed to ongoing economic uncertainty in Southern Nevada. Concerns over rising living costs, inflation, and a general sense of economic instability have led many potential visitors to reconsider their travel plans. Consumer confidence appears to have been shaken, with a growing reluctance to spend on leisure travel, especially as these economic concerns persist. Additionally, there has been a significant drop in tourism from Canada, exacerbating the challenges faced by the local economy.
Alongside these challenges in the tourism and gaming industries, air travel to Las Vegas has also seen a decline. Reid International Airport reported a 3.9% drop in passenger traffic in May 2025 compared to the previous year, further signaling a reduction in the number of visitors arriving by air.
The hotel industry has not been immune to these broader trends. LVCVA data showed a 5.7% drop in revenue per available hotel room and a 5.5% decrease in room nights occupied. Overall, hotel occupancy fell to 83.0%, marking a 3.1% decrease from the same month in 2024. The Las Vegas Strip saw higher occupancy rates at 85.3%, but downtown hotels lagged behind with just 74.8% occupancy.
While visitor numbers and hotel occupancy have taken a hit, hotel room rates have only seen a modest decrease. The average daily rate for a hotel room in Las Vegas was $198.20 in May 2025, a 2.2% drop compared to the same period in 2024. On the Strip, the average rate was higher at $212.46, while downtown rooms were priced more affordably at $109.39. This slight decline in room rates suggests that Las Vegas hotels are maintaining competitive pricing despite the overall decline in tourism.
However, there is some positive news amid the downturn. Convention attendance in Las Vegas saw a significant increase in May 2025, with 511,200 visitors attending various conventions. This marks a 10.7% increase compared to the same period in 2024, offering a boost to the city’s hospitality sector. Conventions typically fill midweek hotel rooms, which would otherwise see lower occupancy, contributing to an overall rise in midweek hotel occupancy, which reached 79.3% in May.
Despite the decline in overall tourism, conventions have emerged as a critical component of the city’s economy. With economic uncertainty continuing to weigh on leisure tourism, large-scale events and conventions may help buffer the tourism industry from broader negative trends. The city’s focus on attracting such events could be key to maintaining stability in the hospitality sector in the face of fluctuating visitor numbers.
Las Vegas is facing a decline in tourism due to economic uncertainties, but convention events have sparked a remarkable boost in visitor numbers and hotel revenue, helping to stabilize the city’s hospitality sector.
In conclusion, while Las Vegas struggles with a decline in visitor numbers due to economic uncertainty and a decrease in international tourism, the city’s convention business has provided a valuable source of growth. This sector continues to drive midweek hotel occupancy and bolster the city’s hospitality industry, even as other areas of the economy face challenges. As Las Vegas adapts to these changes, conventions may become an even more integral part of its tourism strategy in the coming years.
