Las Vegas saw a 7.5% decline in tourism last year, losing about 3.1 million visitors compared to 2024, marking its steepest drop outside the pandemic era since 1970, according to the Las Vegas Convention and Visitors Authority (LVCVA). Concurrently, Nevada’s unemployment rate remained high at 5.1% as of June 2026, one of the highest in the United States. Hospitality workers have reported shrinking incomes tied to reduced hotel occupancy and fewer tips.
Trump-Era Tariffs and Rising Costs Cited for Tourism Decline
The decline in visitor numbers is linked to tariffs imposed during the Trump administration and escalating living costs, including elevated gas prices driven by the war in Iran.
Nevada Democratic Senator Catherine Cortez-Masto emphasized the shift from a $51 billion tourism trade surplus in 2019 to a $70 billion trade deficit under the current administration. Additionally, Canadian visitation to Las Vegas decreased by 17.4% in 2025, the sharpest drop among North American markets, attributed to tariffs and political tensions between the US and Canada.
White House spokesperson Kush Desai stated the Trump administration remains committed to raising wages and creating jobs, while predicting oil prices and inflation will drop following a resolution with Iran.
Hospitality Workers Face Financial Strain amid Reduced Tips
Bellmen, cocktail servers and valets on the Las Vegas Strip report significantly lower tip
income due to fewer tourists and hotel guests. Joe Spica, a resort bellman and father of three, said, “Lower hotel occupancy means fewer opportunities for him and his fellow bellmen, cocktail servers and valets to make tips, their primary income, pinching their wallets even further.” He added, “I used to be able to take care of multiple dinners for me and my family with my tips from one day. Now I’m lucky to get a dinner for my tip for one day, and it’s hard.”
Aaron Mahan, a restaurant worker at an off-Strip location, noted the business scale-back from a
24-hour coffee shop to limited breakfast and buffet service, reflecting the downturn. Mahan reported budgeting changes: “Everything’s costing more. It’s affecting the way I shop, the way I go out, affecting my entire life. I’m budgeting a lot more than I ever did before.” Both Mahan and Spica are members of the Culinary Workers Union Local 226, representing 60,000 hospitality workers in Nevada.
Federal Policy Response Offers Limited Immediate Relief
In April 2026, President Trump promoted a “no tax on tips” policy allowing workers to deduct up to $25,000 in tips from federal income taxes. However, this policy mainly impacts tax filing outcomes and does not provide
monthly financial relief for workers facing tip shortfalls. Ted Pappageorge of Culinary Workers Union Local 226 said, “If your tips are down, then this completely wipes anything that the ‘no taxes on tips’ may have gotten folks.” Mahan observed, “It doesn’t really affect you until you get your taxes back. So, for a month-to-month relief, there isn’t much.”
Local Government and Industry Leaders Respond to Challenges
Las Vegas Mayor Shelley Berkley expressed satisfaction with the city’s economy despite federal challenges, citing growth in conventions and upcoming major events including the Formula One Grand Prix, Super Bowl and NCAA Final Four. Berkley acknowledged the sharp decline in Canadian visitors
and noted that casinos and hotels have begun offering promotions to attract Canadian tourists back. She said, “We are very soft on Canadian business, and I wish that wasn’t the case. I did not realize until we offended the Canadians — how much of our foreign business came from Canada.”
Nevada Governor Joe Lombardo recognized the tourism downturn’s impact on revenue and unemployment, stating in 2025, “Right now, we’re obviously in the doldrums, right? If tourism is down, revenue is down.” A spokesperson for Lombardo highlighted that Nevada’s workforce grew 1.9% from April 2025 to 2026, the highest rate in
the nation, attributing this to pro-business policies encouraging investment and job creation.
In Nevada’s gubernatorial race, Democratic nominee Aaron Ford criticized the current economy, saying, “Working families are suffering under this Lombardo-Trump economy … [Lombardo is] trying to sell Nevadans on this lie that the economy is doing great, asking them not to believe their own experiences because the evidence is actually in their wallets.” Ford proposed reforms including reinvestment in small business loans, limits on corporate home ownership, and capping prescription drug costs.
Peter Guzman, president of Nevada’s Latin Chamber of Commerce, praised Nevada’s small business environment and business
growth under Lombardo, stating, “Nevada is very entrepreneurial. Outside of the gaming hospitality, it’s all about small business, and Nevada has always had a really good environment for businesses to open here … I think [Lombardo’s] the right guy to do that.” Meanwhile, worker Aaron Mahan said he views Lombardo as following Trump and leans toward voting for Ford.
