A new analysis finds a steep decline in overall economic activity in 2025 was caused by a sharp drop in visitor numbers to Las Vegas. Over the year, the city welcomed 38.5 million visitors, down 7.5% on 2024 and the lowest figure since the start of the post-pandemic recovery.
Las Vegas Visitation Slumps While Guest Spending Stays Steady
According to a new report by Jeremy Aguero, a principal at Las Vegas research firm Applied Analysis, the decline was roughly 3.1 million fewer guests than a year ago and a $4.3 billion drop in total spending by visitors. Arrivals fell, but spending per person was largely unchanged, suggesting that those who did travel continued to spend at similar levels to before.
Visitor spending hit $50.8 billion in 2025, down from $55.1 billion a year earlier, according to data. The average spending per visitor during their stay was about $1,318, just below the previous year. Analysts said the steady pattern is a sign of robustness in consumer spending habits even in the face of wider economic challenges.
Travel patterns reflected the slowdown. Air traffic at Harry Reid International Airport was down, with domestic passenger volumes off nearly 6% and international traffic down more than 7%. Performance varied monthly, with the most severe declines observed in the middle of the summer and the end of winter, and relatively moderate declines in the spring and fall months.
Economists attributed the softer demand to lower consumer confidence and uncertainty surrounding global trade tensions. Industry analysts said the pressure on household finances had been growing for some time and eventually fed through to decisions about travel.
Gaming Growth Offsets Weak Spots in Las Vegas Tourism
Nevertheless, some sections remained stable. The number of people attending conventions remained steady at about six million, not much different from last year. Business travelers continued to outspend leisure visitors by a wide margin, averaging almost $1,800 a trip versus about $1,230 for tourists.
Gaming was a bright light. On a per-visitor basis, casino spending jumped, helping southern Nevada set a fifth straight annual record in revenue at $13.7 billion. The strong activity in local gaming halls was principally responsible for the increase.
Other categories were more uneven. Retail shopping and sightseeing both fell, while spending on sporting events soared. Hotel expenses remained quite stable with minor variations.
Tourism still is a major function of the regional economy. The sector directly supported over 250,000 jobs in 2025, with total tourism-related employment exceeding 380,000 jobs. Industry wages topped $22 billion, underscoring its important role in local communities. Tourism accounted for about 40% of southern Nevada’s overall economic output.