Las Vegas recorded 3.1 million fewer visitors in 2025, a 7.5% drop marking the steepest decline outside the pandemic period since the Las Vegas Convention and Visitors Authority began tracking data in 1970. Nevada’s unemployment stood at 5.1% as of June 2026, according to the Bureau of Labor Statistics.
Hospitality Workers Report Shrinking Tips and Cutbacks
Hospitality workers in Las Vegas say lower hotel occupancy has sharply reduced tipping income, which forms the primary earnings for many. Joe Spica, a bellman on the Las Vegas Strip, said, “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.” Restaurant operations are also scaling back; Aaron Mahan noted a local eatery shifted from 24-hour service to limited breakfast and buffet hours due to decreased demand. Mahan added, “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 workers belong to Culinary Workers Union Local 226, representing 60,000 hospitality employees in Las Vegas and Reno.
Political Context: Tariffs, Trade Deficit, and Federal Policy
Nevada Democratic Senator Catherine Cortez-Masto highlighted a shift
from a $51 billion tourism trade surplus in 2019 to a $70 billion deficit under the current administration, attributing tourism challenges partly to Trump-era tariffs. She said, “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.” The White House, through spokesman Kush Desai, responded that the Trump economic agenda has raised wages and jobs and predicted inflation and oil prices will “plummet” upon resolving the Iran conflict. President Donald Trump visited Las Vegas in April 2026 to
promote a “no tax on tips” policy allowing federal income tax deductions on tipped income up to $25,000.
Canadian Visitor Decline and Promotional Efforts
Canadian tourists to Las Vegas declined by 17.4% in 2025, the steepest fall among North American markets, attributed to tariffs and political rhetoric. Las Vegas Mayor Shelley Berkley 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 responded by offering promotional deals to attract Canadian visitors back to the city.
Union and Government Responses on Economic Impact
Ted Pappageorge
of Culinary Workers Union Local 226 said the “no tax on tips” policy offers limited relief since tip incomes have decreased, noting, “If your tips are down, then this completely wipes anything that the ‘no taxes on tips’ may have gotten folks.” Mahan added, “It doesn’t really affect you until you get your taxes back. So, for a month-to-month relief, there isn’t much.” Nevada Governor Joe Lombardo acknowledged, “Right now, we’re obviously in the doldrums, right? If tourism is down, revenue is down.” His spokesperson added that despite elevated unemployment linked to tourism, Nevada’s workforce expanded 1.9% from April 2025
to 2026, the highest growth rate among U.S. states. Democratic nominee Aaron Ford criticized the economic situation, 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.” Peter Guzman, president of Nevada Latin Chamber of Commerce, praised the state’s business environment under Lombardo, highlighting job growth and entrepreneurship outside gaming and hospitality sectors.
