Decline in Las Vegas Visitation Amid Policy Uncertainties
March brought a noticeable decline in Las Vegas visitation, down nearly 8% compared to the previous year. The Southern Nevada area attracted nearly 3.4 million visitors in March 2025, significantly lower than the nearly 3.7 million tourists who arrived in March 2024. This downturn has raised concerns among industry analysts, particularly as it marks the first instance of consecutive monthly declines since the pandemic.
Impact of Trump Administration Policies
A key factor attributed to this decline is the uncertainty surrounding the policies of the Trump administration. Kevin Bagger, the Vice President of Research for the Las Vegas Convention and Visitors Authority (LVCVA), highlighted that evolving federal policies are creating ripples in both international and domestic tourism markets. While specific details were not disclosed, the overarching sentiment indicates that potential delays and changes in policy may be causing concern among potential visitors.
Visitor Demographics and Trends
Notably, international travel has seen significant declines contributing to the visitation drop. Analysts suggest that rising concerns surrounding travel advisories, particularly from Asian markets, are influencing tourists’ choices about traveling to the U.S. Reports indicate that several countries have issued warnings due to perceived risks, including high costs of travel and potential difficulties with returning home after visits.
The lack of international visitors is particularly impactful, as they contribute substantially to the local economy. The LVCVA has previously indicated that approximately 12% of annual visitors to Southern Nevada hail from international markets.
Event Scheduling and Local Occupancy Rates
In his monthly statements, Bagger mentioned that March’s event calendar in Las Vegas was not as robust as in previous years. While the month did witness a 10% increase in convention attendance, the total number was modest, with only 534,000 attendees participating. Overall, hotel occupancy rates dipped by 2%, although a positive note was the 3% increase in average daily room rates, which rose to approximately $183.86.
Chad Beynon, a gaming analyst at Macquarie Securities, expressed cautious optimism regarding future Strip visitation. Operators are hopeful that increased bookings for conventions and group business will result in a turnaround as the year progresses. Additionally, many resorts are investing in refurbishing rooms and enhancing non-gaming amenities, such as dining options, hoping to attract more visitors.
Long-Term Concerns for International Tourism
Despite the optimism for local conventions, there is a prevailing concern regarding international tourism. Analysts have noted that weak tourism trends from Asian markets remain a challenge. Reports indicate that many travelers from these regions are reconsidering trips to the U.S., again linking these decisions to both political climates and travel advisory warnings.
Geoff Freeman, CEO of the U.S. Travel Association, pointed out that international visitor numbers have significantly dropped since the pandemic. The U.S. only welcomed 72 million international visitors last year, a steep reduction from the 79 million recorded in 2019. This decline is particularly concerning as major future events like the 2026 World Cup and the 2028 Summer Olympics approach. Freeman remarked on the urgent need for a strategic plan to engage potential international visitors better.
Airport Traffic Trends
Adding to the concerns, Harry Reid International Airport reported its second consecutive monthly decrease in passenger numbers during March, registering a 3.7% drop compared to the first quarter of 2024. Notably, although international passenger volume saw a marginal decline of less than 1%, it was Canadian airlines that experienced the largest drop in traffic to Las Vegas.
As Las Vegas continues to grapple with these challenges, a comprehensive approach addressing both domestic and international visitor concerns may prove crucial in reviving its once-thriving tourism market.