Las Vegas Faces Tourism Challenges Amid National Decline

Las Vegas is gearing up to tackle a significant downturn in tourism, joining forces with major cities like New York, California, Hawaii, Portland, Michigan, and Washington. This collective effort highlights the ongoing struggles many U.S. destinations face, specifically impacting the meetings and events sector.

The Decline in Visitor Numbers

Recent reports indicate a troubling drop in visitor numbers, a trend that mirrors findings in New York, California, and beyond. Las Vegas, a long-standing hub for conferences and entertainment, is now grappling with decreased numbers reminiscent of its counterparts. The decline is particularly pronounced within the Meetings, Incentives, Conferences, and Exhibitions (MICE) industry, as demonstrated by a noticeable reduction in convention attendance and business travelers.

National Trends Impacting Las Vegas

Across the United States, cities have been reporting substantial drops in tourism. In June 2025, several areas, including New York and California, saw similar declines driven by economic turbulence and heightened travel costs. Hawaii, Portland, Michigan, and Washington are no exceptions, facing significant impacts on both events and overall tourism.

A Closer Look at New York City

New York City, renowned globally for its vibrant atmosphere, projected a staggering loss of 2 million foreign visitors in 2025, equating to a revenue decline of $4 billion. Key factors like changes in U.S. foreign policy and increased tariffs, particularly affecting Canadian travelers, have resulted in a significant drop in revenue for businesses dependent on international tourists. This slump in tourism also extends to convention attendance, which saw events like InfoComm and Cisco Live contribute to a staggering 10.7% drop in numbers.

Las Vegas: The Heart of the Challenge

Despite traditional resilience, Las Vegas is exhibitng signs of vulnerability. With visitor numbers down by 6% in June 2025 compared to the previous year, hotel occupancy has also taken a hit, dropping to 78.7%. Midweek visits show even less promise, with occupancy falling to 75.5%. These figures signify a broader trend wherein both domestic and international visitors are, for various reasons, opting to stay away.

MICE Sector in Decline

The MICE industry in Las Vegas, usually a vital cog in the city’s economic machinery, saw an alarming 10.7% drop in convention attendance for June 2025. Noteworthy events like InfoComm, which typically draw hundreds of thousands, were absent, leading to the loss of around 50,000 convention attendees. The ripple effects are far-reaching, impacting hotel bookings and ancillary businesses that thrive on convention traffic.

Regional Variations: California to Hawaii

California, especially cities like Los Angeles and San Francisco, reported a 9.4% decline in international tourists due to increased travel restrictions and costs. The MICE industry here has also felt the pressure, with many large conventions struggling to attract desired attendee numbers.

Hawaii has similarly suffered, reporting a 6% decline in visitors, primarily due to high airfare and competing destinations. This reliance on international tourists makes the downturn even more concerning, as the MICE sector struggles with fewer events scheduled.

Challenges in Portland and Michigan

Portland, known for its arts and culture, has experienced a 2.7% drop in tourism revenue compared to pre-pandemic years. The situation is compounded in Michigan, where Detroit and Grand Rapids have seen a projected 17.3% drop in international visitors. High visa costs and changing travel preferences have crippled the MICE sector, with fewer foreign attendees boosting local economies.

Seattle and Texas: Battling for Recovery

Seattle has observed a dramatic 26.9% decrease in international overnight visitors, a blow that has significantly hindered local businesses reliant on tourist spending. Like its peers, Texas markets, particularly Austin and Dallas, are contending with projected drops in international tourism, further complicating MICE attendance.

Adapting to Market Changes

The MICE industry nationwide faces a collective challenge, experiencing standard drops of 7-10% in convention attendance. Increasing costs and economic uncertainty compound the struggle, economically affecting hotels, transportation, and local enterprises reliant on convention traffic.

To counter these trends, cities must pivot their marketing strategies, focusing on attracting diverse, smaller-scale events and adapting to hybrid options that accommodate changing travel patterns.

Innovations in Las Vegas Tourism

Despite the declines, the gaming sector in Vegas has shown resilience, boasting a 3.53% year-over-year revenue increase. Embracing trends like increased sports betting demonstrates the sector’s adaptability, yet it is crucial for the broader tourism economy to recover.

Innovation is crucial; Las Vegas must pivot toward sustainable practices and better integrate technology into the visitor experience. This adaptability will be essential in regaining the trust of international travelers and building a more resilient tourism model for future uncertainties.

Building Towards the Future

The ongoing tourism struggles in Las Vegas, reflective of broader national patterns, emphasize the need for innovative approaches. Sustainable tourism, diversified experiences, and the integration of technology will be key in transforming challenges into opportunities, ultimately supporting the city in reclaiming its status as a premier global destination.