Las Vegas is facing sustained turbulence in 2025, with both tourism figures and gaming revenues continuing to trend downward. According to the latest data from the Las Vegas Convention and Visitors Authority (LVCVA), visitor numbers fell by 6.5% year-over-year in May, totaling approximately 3.41 million travelers. This marks the latest in a string of monthly declines, echoing April’s 5.1% drop.
The Nevada Gaming Control Board reported statewide gross gaming revenue (GGR) of $1.29 billion in May, a 2% year-on-year decrease. The Strip experienced a steeper 4% decline, bringing in $713.7 million. With just one month left in the fiscal year, the Strip is down 3.3%, placing it on track to record its first post-pandemic fiscal year loss.
Brendan Bussmann of B Global Advisors remarked, “It’s optics more than anything, I think… there’s an ebb and flow to this, and it just depends on which lens you want to look through.”
Weighing the Factors: Optimism vs. Caution
The downturn comes in stark contrast to the years immediately following the Covid-19 pandemic, when the Strip saw record-breaking performance. While some analysts argue that a plateau was inevitable after historic highs in 2024—including the Super Bowl —others point to structural challenges.
Optimists highlight continued investment in large-scale projects, such as sports venues and major resort redevelopments like the Mirage and Tropicana. Meanwhile, convention attendance has seen a notable upswing, rising 10.7% in May to over 511,000 attendees.
On the other hand, pessimists cite a range of macroeconomic pressures. These include rising operational costs, constrained consumer spending, and reduced international visitation due to ongoing trade tensions. Flights from Mexico and Canada to Harry Reid International Airport in May saw 17% and 27% declines, respectively. Overall, airport passenger traffic dipped by 3.9% in May.
Federal Reserve Chair Jerome Powell also acknowledged the impact of trade policies: “In effect, we went on hold when we saw the size of the tariffs and essentially all inflation forecasts for the United States went up materially as a consequence of the tariffs.”
Hotel Performance and Shift Toward Local Markets
Las Vegas hotels are feeling the strain. The average daily room rate in May was $198.20, with Strip properties averaging $212.46 and downtown rates coming in lower at $109.39. Despite falling occupancy—83% citywide, down 3.1% from last year—room rates are only down 2.2%. Revenue per available room declined by 5.7%, and total occupied room nights dropped 5.5%.
Simultaneously, outlying markets have outpaced the Strip. Fiscal year data shows positive growth in North Las Vegas (+1.4%), Mesquite (+4.6%), and the broader local market (+5.3%). Analysts see this as a consumer pivot toward more affordable alternatives.
Macquarie analyst Chad Benyon noted that second-quarter earnings for Strip operators may disappoint, while local operators like Boyd Gaming and Red Rock Resorts are expected to “meet or exceed” projections.
Regulatory Scrutiny Adds to Industry Pressure
Adding to industry challenges, major Strip operators have come under intense regulatory scrutiny. Resorts World Las Vegas was fined $10.5 million for anti-money laundering violations, while MGM Resorts and Wynn Resorts were penalized $8.5 million and $5.5 million, respectively.
Commissioner Brian Krolicki commented these enforcement actions should “serve as a clarion call” for the industry. However, all three investigations originated with federal authorities, raising concerns about the state’s regulatory effectiveness.
Source:
“Las Vegas tourism in decline as visitor count plunges again”, 8newsnow.com, Jun 28, 2025
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