Las Vegas saw about 3.1 million fewer visitors in 2025, marking a 7.5% decrease, the largest falloff outside the pandemic period since tourism tracking began in 1970, according to the Las Vegas Convention and Visitors Authority (LVCVA). The state’s unemployment rate was 5.1% as of June 2026, among the highest across the United States.
Tariffs, Gas Prices, and Rising Costs Drag Tourism
Local tourism experts and workers attribute the downturn to several economic factors, including tariffs imposed during the Trump administration, elevated gas prices linked to the conflict in Iran, and a rising cost of living. Nevada Democratic Senator Catherine Cortez-Masto noted the country’s shift from a $51
billion tourism trade surplus in 2019 to a $70 billion trade deficit under the current administration.
High gas prices increased travel costs, while tariffs on Canadian goods coincided with a 17.4% drop in Canadian visitors in 2025—the steepest decline among North American markets.
Hospitality Workers Face Shrinking Tips and Income
Hospitality workers on the Las Vegas Strip report significant income reductions due to diminished tourist volume. Bellmen, cocktail servers, and valets rely heavily on tips, which have declined alongside lower hotel occupancy rates. Joe Spica, a bellman and father of three, explained that tips which once covered multiple family dinners now only afford a single meal.
Aaron
Mahan, employed at an off-Strip restaurant downgraded from 24-hour service to limited hours, described budgeting increasingly due to higher living expenses.
Limited Impact of “No Tax on Tips” Policy
In April 2026, former President Donald Trump promoted a policy allowing workers to deduct up to $25,000 in tips from federal income taxes. However, Culinary Workers Union Local 226 representative Ted Pappageorge said the program is ineffective for workers experiencing reduced tip income, particularly for married couples sharing the deduction cap.
Mahan noted the policy provides financial relief only during tax season, offering little monthly benefit amid ongoing tip declines.
Political Responses and Efforts to Revive Canadian Tourism
Las Vegas Mayor Shelley Berkley expressed satisfaction with the
city’s economy, highlighting growing convention business and major sporting events such as the Formula One Grand Prix, Super Bowl, and NCAA Final Four. She acknowledged the damage to Canadian tourism and mentioned hotel and casino promotions aimed at regaining that market.
Nevada Governor Joe Lombardo admitted tourism and revenue declines but emphasized a 1.9% workforce growth from April 2025 to 2026, the highest nationwide. His campaign spokesperson noted challenges from national economic factors but promoted policies encouraging investment and job creation.
Democratic gubernatorial nominee Aaron Ford criticized the current economy tied to the Lombardo-Trump administration, pledging reforms to support small
businesses and health care affordability if elected.
