Las Vegas Faces Summer Tourism Slump Amid High Costs and Travel Strains
This summer, Las Vegas — the city often celebrated as the ultimate playground for tourists — has been facing a noticeable slowdown in visitors. Casino operators, city officials, and analysts are all pointing to a mix of factors, but the common thread seems to be that the city is simply becoming too expensive for many travelers.
During recent meetings of the Las Vegas Convention and Visitors Authority, tariffs and international travel issues were blamed as part of the problem. Steve Hill, the president of the group, explained that decisions made at the national level, especially in international relations, have caused fewer tourists from countries like Canada to visit this year. That dip is significant because Canadian travelers usually make up a reliable share of Vegas tourism.
At the same time, insiders within the casino industry are voicing concerns that the city might be pricing itself out of reach for average visitors. Derek Stevens, CEO of Circa Resort & Casino, admitted that people are reacting strongly to rising food and drink prices. Long gone are the days when Las Vegas was known for cheap buffets and bargain meals. Now, visitors are finding $18 bottles of water in minibars, $37 martinis, and steakhouses that no longer feel like a deal. As Stevens put it, “Vegas is maybe pricing itself out.”
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Adding to the challenge, new contracts with the Culinary Workers Union have raised operating costs for casinos and resorts. While workers have welcomed stronger contracts, casino executives warn that labor expenses are contributing to higher prices across the Strip. Industry consultants have also accused some venues of “aggressive price-gouging,” which makes visitors feel like they are being taken advantage of.
Despite this, industry leaders insist the situation is not a collapse but a seasonal setback. Caesars Entertainment CEO Tom Reeg described the summer as “soft,” while MGM Resorts CEO Bill Hornbuckle pointed to hotel remodels and seasonality as factors, rather than consumer weakness. Analysts agree that the downturn is partly due to tough comparisons with last year, when the Super Bowl boosted tourism.
Numbers confirm the slowdown: visitor volume has dropped more than 7% compared with 2024, and June alone saw an 11% decrease. Airline passenger traffic is also down, worsened by a strike at Air Canada and financial troubles at Spirit Airlines, both of which hit Vegas travel hard. On the Strip, gaming revenue has dipped, with baccarat — a key high-roller game — showing sharp declines. Hotel rates have also fallen slightly, signaling weaker demand.
Still, there are bright spots. International travel is up compared with two years ago, conventions are expected to rebound in the fall, and big events like Formula One continue to bring major economic impact. Stevens and other executives stress that Las Vegas continues to reinvent itself, offering new dining, entertainment, and package deals to keep visitors coming.
So while Sin City may not feel as affordable as it once did, the message from its leaders is clear: Las Vegas is still open for business, even if it’s adjusting to a different kind of tourist demand.
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