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Vegas Economy Fades: Leisure Spending Drops Sharply
19 Feb
Summary
- Las Vegas saw its sharpest annual visitor decline outside the pandemic.
- Weakness in leisure travel impacts hotels, airlines, and workers.
- Higher prices and economic uncertainty deter budget-conscious travelers.
Las Vegas has recorded its sharpest annual visitor decline outside the pandemic era, with a 7.5% drop in 2025. This downturn is primarily attributed to a weakening in leisure travel, the city's economic lifeblood, even as conventions continue to perform well. The decrease in passenger traffic at Harry Reid International Airport highlights the broader trend.
The shift is most noticeable during weekdays, with softer demand impacting hotel occupancy and revenue. This has led hotels to offer discounts and additional perks to attract visitors. Airlines have also responded by trimming flight schedules into Las Vegas.
Economic factors such as inflation and uncertainty are pushing travelers to reconsider their plans, with many finding Las Vegas increasingly expensive. This price sensitivity is particularly affecting budget-conscious travelers and international visitors who typically spend more during longer stays.
Workers in the hospitality sector are feeling the impact directly through reduced tips and fewer available shifts. This slowdown is seen as a precursor to broader economic challenges, especially as booking for summer travel approaches.
Officials suggest Las Vegas is settling into a more balanced market after two consecutive record years. However, the current trend indicates a growing caution among consumers, with the top 10% of earners driving remaining spending.
