Las Vegas recorded a 7.5% decline in tourism in 2025, losing about 3.1 million visitors compared to the previous year, marking the steepest drop outside the pandemic era since 1970, according to the Las Vegas Convention and Visitors Authority (LVCVA). Nevada’s statewide unemployment rate reached 5.1% in June 2026, ranking among the highest in the United States.
Tariffs, Gas Prices, and Cost of Living Drive Tourism Decline
The tourism downturn is largely attributed to tariffs implemented during the Trump administration, particularly those targeting Canada, which has led to a 17.4% decrease in Canadian visitors to Las Vegas in 2025. Additional factors include elevated gas prices driven by conflict with Iran
and increased living expenses, placing financial strain on tourism-dependent workers.
Tourism Workers Confront Reduced Tips and Service Cutbacks
Hospitality workers on the Las Vegas Strip report diminished tipping income due to fewer hotel occupants. Joe Spica, a bellman supporting three children, stated he now earns tips adequate for only one dinner per day, down from multiple meals previously. Some resorts have scaled back services, as exemplified by a local restaurant reducing its operations from 24-hour coffee service to limited breakfast and buffet offerings. Aaron Mahan, a restaurant employee, said rising costs have forced him to tighten his budget, impacting his spending habits.
The Culinary Workers Union Local 226,
representing 60,000 Las Vegas and Reno workers, criticized the federal “no tax on tips” policy, which allows workers to deduct up to $25,000 in tips from taxable income, as ineffective given the decline in tip volume. Union representative Ted Pappageorge noted that when tips decrease, the deduction provides little benefit, especially for spouses who must share the cap.
Political Leaders Offer Diverging Views on Economic Conditions
Nevada Democratic Senator Catherine Cortez-Masto highlighted the tourism trade deficit has reversed from a $51 billion surplus in 2019 to a $70 billion deficit under the Trump administration. She linked the decline in international tourism to federal tariffs and policies. White House
spokesman Kush Desai defended the administration’s economic record, citing job creation, wage growth, and investments.
Governor Joe Lombardo acknowledged the current downturn, stating, “If tourism is down, revenue is down,” but noted a 1.9% statewide workforce increase from April 2025 to April 2026, the highest growth rate nationally. Democratic gubernatorial candidate Aaron Ford criticized Lombardo and Trump, accusing them of worsening conditions for working families and said Nevadans’ economic experiences contradict claims of prosperity.
Las Vegas Mayor Shelley Berkley remarked on the city’s resilience due to expanding convention business and major sporting events including the Formula One Grand Prix, Super
Bowl, and NCAA’s Final Four, despite challenges.
Decline in Canadian Tourists Prompts Local Response
Canadian visitors, who represented a significant portion of Las Vegas’ foreign tourism, dropped sharply by 17.4% in 2025 following tariff impositions and strained bilateral relations. Mayor Berkley expressed regret over the decline and noted that some casinos and hotels are offering promotional deals aimed at attracting Canadian tourists back to the city.
