<\/p>\n
\n People take pictures with the Welcome To Fabulous Las Vegas sign under hazy orange skies as the sun sets on July 29, 2023.<\/p>\n
Patrick T. Fallon\/AFP via Getty Images<\/p>\n
hide caption\n <\/p>\n
toggle caption<\/p>\n
Patrick T. Fallon\/AFP via Getty Images<\/p>\n
After years of booming tourism in Las Vegas, the hot streak looks to be cooling off \u2014 and it may be a tell for the broader economy.<\/p>\n
For the sixth consecutive month this year, Las Vegas experienced a decline in the number of visitors year-over-year \u2014 with June seeing nearly 400,000 fewer visitors or an 11.3 percent drop compared to the same time last year, according to the Las Vegas Convention and Visitors Authority<\/a> (LVCVA).<\/p>\n Summer is typically a slower season for Las Vegas given its heat and June was a quieter convention month than last year, according to experts on Las Vegas tourism. But the dip in tourism also comes amid growing concerns over the impact of President Trump’s global trade war and immigration policies on international travel to the U.S. Meanwhile, rising prices and tariffs appear to be changing how American consumers are spending their money.<\/p>\n In its June report, the LVCVA said the dip in tourism reflected “broader backdrop of persistent economic uncertainty and weaker consumer confidence.”<\/p>\n What happens in Las Vegas matters on a national scale because it often reflects larger trends, according to Andrew Woods, \u200athe director of the Center for Business and Economic Research at the University of Nevada, Las Vegas.<\/p>\n “It tends to be a signal for potentially where the economy’s headed,” he said.<\/p>\n By the numbers <\/p>\n Both hotel occupancy rate and convention attendance in Las Vegas fell several percentage points this June compared to the same period last year, according to the LVCVA.<\/p>\n The city’s Harry Reid International Airport<\/a> also reported a decrease of roughly 318,000 passengers in June compared to last year \u2014 with drops in both domestic and international travel.<\/p>\n On the road, traffic on Interstate 15 at the California-Nevada border dipped in June by 4.3%, the Las Vegas Review-Journal reported<\/a>.<\/p>\n Despite the slowdown, nearly 3.1 million people visited Las Vegas in June and convention attendance is higher year-to-date compared to the first half of 2024, the LVCVA reported. Gambling revenue from the city’s casinos slightly increased compared to June 2024, according to the Nevada Gaming Control Board<\/a>.<\/p>\n International tourism takes a toll <\/p>\n Among the biggest blows has been the loss of visitors from Canada, who make up the biggest share of Las Vegas’ international market, according to Woods.<\/p>\n “A \u200alot of the slowdown we’ve seen in international travel is, from what I understand, primarily driven by the Canadian visitations,” he said.<\/p>\n NPR has previously reported<\/a> that many Canadians have scrapped their travel plans to the U.S. in protest of Trump’s 35% tariffs<\/a> on many Canadian goods and repeated remarks suggesting the country should become the 51st U.S. state<\/a>.<\/p>\n In the U.S. more broadly, there was a drop in international travelers from nearly every region in the world in June compared to last year, according to a preliminary summary from the National Travel and Tourism Office.<\/p>\n Rachel J.C. Fu, the chair of the Department of Tourism, Hospitality and Event Management at the University of Florida, said some international travelers feel wary of visiting the U.S. in light of news reports about tougher scrutiny at airports<\/a>. <\/p>\n “Visa processing times and strict entry requirements have also been highlighted as barriers deterring potential international travelers,” she said.<\/p>\n The drop in international tourists \u2014 and particularly from Canada \u2014 has also been felt in New York City<\/a>, Cape Cod<\/a>, and across California<\/a>. The World Travel & Tourism Council in May said that the U.S. is on track to lose $12.5 billion<\/a> in international spending this year.<\/p>\n More cautious spending <\/p>\n Another driver for Vegas’ slowdown is persistent inflation and economic uncertainty, according to Woods. While these issues have existed for some time, they now appear to be influencing how consumers spend, he added.<\/p>\n “\u200aThey’re more discerning about where and how they’re traveling and where they’re spending their dollars,” Woods said.<\/p>\n That sentiment has also been reflected in national surveys. More Americans intend to take vacations this summer compared to last year, but they plan to do so with a smaller budget, according to a survey<\/a> by Deloitte’s ConsumerSignals that was released in May.<\/p>\n For those spending cautiously, Las Vegas may not be in their cards, according to Oliver Lovat, CEO of the Denstone Group and a casino-industry consultant. He explained that the city has become more expensive in response to rising labor and food costs.<\/p>\n “If you’re looking for a bargain, because of the way that Las Vegas has changed, it’s no longer a bargain destination,” he said.<\/p>\n What’s in store for Las Vegas <\/p>\n Economists say it’s too early to determine whether the recent decline in Las Vegas is temporary or marks the beginning of a long-term trend.<\/p>\n How consumers in Las Vegas and across the U.S. spend their dollars after paying their bills and buying essentials will be a key indicator to watch out for, Woods said.<\/p>\n “Individuals and households are asking how confident they are in their purchasing decisions, such as when they buy a new car or where to go on vacation,” he added. “Because if they are confident enough to make those decisions, that is telling a lot about the health of our economy here in Las Vegas.”<\/p>\n![\"A](\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/3661x3661+915+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F38%2Fef%2Fde2f6db44229b91ba590d495c024%2Fap25219021614778.jpg\")
<\/a> <\/p>\n
![\"The](\"https:\/\/npr.brightspotcdn.com\/dims3\/default\/strip\/false\/crop\/5464x5464+1364+0\/resize\/100\/quality\/100\/format\/jpeg\/?url=http%3A%2F%2Fnpr-brightspot.s3.amazonaws.com%2F07%2Fd5%2Fd5eacc7a4beeb3465c653de300b3%2Fgettyimages-2225264386.jpg\")
<\/a> <\/p>\n