Las Vegas experienced a 7.5% decline in tourism in 2025, losing approximately 3.1 million visitors, marking the steepest drop outside the pandemic era since 1970, Las Vegas Convention and Visitors Authority (LVCVA) data show. Nevada’s unemployment rate remained high at 5.1% as of June 2026, reflecting ongoing economic challenges linked to the tourism downturn.
Hospitality Workers Face Shrinking Tips and Financial Strain
Hospitality workers report significant income reductions as lower hotel occupancy limits tipping opportunities. Joe Spica, a bellman on the Las Vegas Strip, said his daily tips have fallen dramatically, forcing tighter budgets. “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 told ABC News.
Aaron Mahan, a restaurant worker affected by the tourism slowdown, noted operational cutbacks, such as his 24-hour coffee shop reducing hours due to decreased business. He described widespread cost pressures: “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 are members of Culinary Workers Union Local 226, representing 60,000 hospitality employees
in Nevada.
Federal Policies and Economic Outlook
The Trump administration promoted the “no tax on tips” policy permitting workers to deduct up to $25,000 in tips from federal income taxes. However, Culinary Workers Union representative Ted Pappageorge noted the measure offers minimal relief amid declining tip amounts. “If your tips are down, then this completely wipes anything that the ‘no taxes on tips’ may have gotten folks,” Pappageorge said.
Workers reported receiving any tax benefit only after filing returns, limiting immediate financial aid. White House spokesman Kush Desai maintained that the Trump economic agenda raises wages and creates jobs, attributing inflation and oil price concerns
to the Iran conflict, which he said will resolve, causing prices to “plummet.”
State and Local Responses to the Tourism Decline
Nevada Governor Joe Lombardo acknowledged the tourism-related economic slump and its impact on unemployment but highlighted the state’s 1.9% workforce growth from April 2025 to April 2026, the highest among U.S. states. “Right now, we’re obviously in the doldrums, right? If tourism is down, revenue is down,” Lombardo said in August 2025.
Las Vegas Mayor Shelley Berkley expressed optimism about the city’s economic prospects, citing increasing convention business and upcoming events, including the Formula One Grand Prix, Super Bowl, and NCAA Final Four, which are expected to
draw visitors. Berkley also acknowledged the drop in Canadian tourists was substantial and blamed tariffs, stating, “We are very soft on Canadian business, and I wish that wasn’t the case.”
Democratic gubernatorial nominee Aaron Ford sharply criticized the current economic situation and pledged support for working families through small business reinvestment and consumer protections. Ford said, “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.”
Tourism Drop Particularly Affects Canadian Visitors
Canadian visitation to Las
Vegas dropped 17.4% in 2025, the largest decline among North American markets, according to the LVCVA. The decrease follows U.S. tariffs and political tensions under the Trump administration. Las Vegas has since attempted promotional efforts targeting Canadian tourists to counteract the losses.
Senator Catherine Cortez-Masto linked the shift in tourism trade balance to federal policy changes, 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.”
Union and Economic Context Ahead of Major Events
Culinary Workers Union Local 226 represents 60,000 hospitality employees in Nevada,
many of whom are directly impacted by the tourism drop and the resulting decline in tips. Union leaders criticized the federal tax deduction policy as insufficient to offset the effects of fewer visitors and reduced tip income.
Despite current difficulties, Las Vegas continues to prepare for major upcoming sporting and convention events anticipated to bring tourists and economic activity to the city. The local economy’s reliance on visitors and conventions remains significant in assessing the region’s outlook.
