Decline in Las Vegas Visitation: Early 2025 Insights
In March 2025, Las Vegas experienced a noticeable decline in visitation, with figures dropping nearly 8% compared to the previous year. According to data from the Las Vegas Convention and Visitors Authority (LVCVA), the city attracted approximately 3.4 million visitors last month, down from nearly 3.7 million in March 2024.
Monthly and Year-to-Date Trends
The downward trend extended into the first three months of 2025, revealing an overall decline of nearly 7% in visitation compared to the same period in 2024. Notably, this marks the first instance of decline across all three months since the onset of the pandemic. February 2025 saw a significant 12% drop in visitation, largely attributed to an influx of visitors during Super Bowl LVIII the previous year.
Impact of Federal Policies
Kevin Bagger, Vice President of Research at LVCVA, highlighted the uncertainty brought on by evolving federal policies as a contributing factor to this decline. “The market is facing unclear impacts of evolving federal policies rippling through international and domestic markets,” Bagger stated, although he refrained from providing further specifics. The LVCVA has yet to release detailed data for April.
Event and Conference Landscape
While Las Vegas experienced a 10% increase in convention attendance last month, totaling 534,000 attendees, the overall special event calendar was less robust than the previous year. Furthermore, hotel occupancy saw a decline of 2%; however, the average daily room rate increased by 3% to $183.86.
Future Outlook: Optimism Amidst Challenges
Chad Beynon, a gaming analyst at Macquarie Securities, expressed cautious optimism regarding the Strip’s trajectory for the remainder of the year. Resort operators noted a rise in convention and group business bookings through year-end, alongside ongoing projects aimed at refurbishing hotel rooms and enhancing non-gaming amenities.
International Travel Concerns
However, sentiments surrounding international visitation remain cautious. Analysts from Seeking Alpha indicated that weak trends in Asian tourism persist, exacerbated by travel advisories issued by several countries, highlighting rising costs and challenges associated with returning home. Anecdotal evidence suggests that Asian travelers are reevaluating their trips to the U.S. due to these warnings and the current political climate.
Broader Travel Trends
Geoff Freeman, CEO of the U.S. Travel Association, noted a significant drop in international arrivals, with the numbers falling from 79 million in 2019 to 72 million last year. He cautioned that ongoing declines in travel from countries like Canada, South America, and Europe could have repercussions for major future events such as the 2026 World Cup and the 2028 Summer Olympics.
Insights from Local Airports
Recent reports from Harry Reid International Airport indicated a second consecutive month of declining passenger volume in March, down 3.7% compared to the same period in 2024. Although international passenger volume experienced a slight decline of less than 1%, the most significant drop was noted among Canada’s major airlines servicing Las Vegas.
Conclusion
The data and analyses suggest that Las Vegas is at a crossroads, facing both challenges and opportunities in the coming months. Stakeholders will need to address the factors impacting international travel to better position the city as a leading destination for global visitors.