Las Vegas experienced a sharp decline in tourism last year with 3.1 million fewer visitors, marking a 7.5% drop, the largest since 1970 outside the pandemic period, according to the Las Vegas Convention and Visitors Authority (LVCVA). The tourist slowdown contributed to Nevada’s unemployment rate remaining high at 5.1% as of June 2026, based on Bureau of Labor Statistics data.
Impact on Hospitality Workers and Tip Earnings
Hospitality employees in Las Vegas are reporting significant financial strain as lower visitor numbers have reduced tip income. Joe Spica, a 44-year-old bellman on the Las Vegas Strip, said decreased hotel occupancy has limited opportunities for tips, which form the
primary income for bellmen, cocktail servers, and valets. “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,” Spica said.
Aaron Mahan, a 52-year-old restaurant worker at an off-Strip establishment, described how the decline in business led to the 24-hour coffee shop being downgraded to limited services. He added that rising costs have forced tighter personal budgeting, saying, “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 Spica and Mahan are members of Culinary Workers Union Local 226, representing 60,000 workers in Las Vegas and Reno.
Tariff Effects and Decline in Canadian Visitors
The tourism downturn has been linked to tariffs imposed by the Trump administration and increased operational costs. Canadian visitors, typically a significant market for Las Vegas, declined by 17.4% in 2025, the largest drop among North American visitors, per the LVCVA. This decline followed tariffs on Canada and controversial remarks by former President Trump, including suggesting Canada become the “51st state.”
Las Vegas Mayor Shelley Berkley
acknowledged the decline in Canadian tourists and the ongoing challenge it presents. She stated, “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.” Some casinos and hotels have launched promotions aimed at attracting Canadian visitors back.
Federal Tax Policy on Tips and Union Response
In April 2025, former President Trump promoted a “no tax on tips” policy allowing workers to deduct up to $25,000 in tips from federal income taxes. However, Culinary Workers Union Local 226 criticized the policy as ineffective in the current
context of reduced tip volumes.
Union representative Ted Pappageorge explained, “If your tips are down, then this completely wipes anything that the ‘no taxes on tips’ may have gotten folks.” Aaron Mahan added that the policy provides limited month-to-month relief since the deduction applies when taxes are filed, stating, “It doesn’t really affect you until you get your taxes back. So, for a month-to-month relief, there isn’t much.”
Political Context and Official Economic Statements
Nevada Democratic Senator Catherine Cortez-Masto attributed the tourism deficits to current federal policies, stating, “We have gone as a country from a $51 billion tourism trade surplus in 2019, to now a
$70 billion trade deficit in this country on travel and tourism under this administration.”
Governor Joe Lombardo recognized the economic downturn linked to tourism, saying, “Right now, we’re obviously in the doldrums, right? If tourism is down, revenue is down.” However, he highlighted workforce growth of 1.9% from April 2025 to April 2026, the highest growth rate among all states.
Democratic nominee for governor, Nevada Attorney General Aaron Ford, criticized the current administration’s economic impact, stating, “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 reinvesting in small businesses, restricting corporate ownership of homes, and capping prescription drug costs.
White House spokesman Kush Desai responded by emphasizing the administration’s focus on job creation, wage increases, and investment to promote long-term prosperity, predicting that inflation and oil prices will decrease following resolution efforts with Iran.
Local Government Perspective on Convention and Event Growth
Despite challenges in tourism, local government officials report positive signs in other sectors. Las Vegas Mayor Shelley Berkley expressed satisfaction with the city’s ongoing economic activities, noting growth in conventions and major sporting
events such as the Formula One Grand Prix, Super Bowl, and NCAA Final Four. Berkley stated that these events continue to draw visitors, providing economic support amidst the broader tourism slowdown.
Governor Lombardo’s spokesperson acknowledged the higher unemployment related to tourism but emphasized that the state’s long-term trends are positive, highlighting Nevada’s workforce expansion as key progress. The Nevada Latin Chamber of Commerce President Peter Guzman supported these assessments, citing Nevada’s entrepreneurial environment and favorable conditions for small business growth under Lombardo’s leadership.
