Las Vegas Strip tourism slumped despite 2025 record gaming revenue

Throughout 2025, important tourism indicators in Las Vegas, including Las Vegas Strip hotel revenue and passenger traffic at Harry Reid International Airport, consistently pointed to weakened demand. 

Las Vegas welcomed approximately 38.5 million visitors in 2025, a 7.5% drop from 2024 and the lowest annual total since the post-pandemic rebound in 2021, according to the Las Vegas Convention and Visitors Authority (LVCVA).

Despite the tourism downturn, Las Vegas Strip gaming revenue reached roughly $8.8 billion — a slight year-over-year gain that set a new annual record.

The divergence reflects a tourism slowdown that has rippled through the hospitality sector even as gaming — particularly at high-stakes tables and premium slots — buoyed earnings for casinos.

Vegas tourism slide: Numbers underline broad weakness

According to the LVCVA’s 2025 summary, Las Vegas recorded 12 consecutive months of year-over-year visitor declines.

That total not only trails 2024’s numbers, but sits well below the city’s pre-pandemic peaks — including the record 42.9 million visitors logged in 2016.

Breakdowns of the LVCVA data show further stress points across key tourism indicators.

• Hotel occupancy averaged 80.3% for the year, down approximately 3.3 points from 2024.
• Average daily room rates fell roughly 5% to around $183.52.
• Revenue per available room (RevPAR) was down nearly 8.8% — though both room rates and RevPAR still ranked among the highest on record.
• December 2025 visitation totaled about 3.1 million visitors, a drop of approximately 9.2% from December 2024.
• Las Vegas Strip properties accounted for 56% of Nevada’s gaming revenue, according to Casinos.com.
• More than 300 casinos across the Silver State collected nearly $15.8 billion in 2025, a new annual revenue record for the fifth consecutive year in Nevada, per Casinos.com.

“Las Vegas operates at a scale that few destinations can match, and 2025 required us to remain nimble as conditions evolved. Despite a challenging environment, convention demand remained steady, the events calendar remained strong, and the destination continued to adapt in real time,” LVCVA CEO Steve Hill told the Las Vegas Review-Journal.

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Las Vegas convention and business travel showed relative stability

Convention activity was relatively stable for the Las Vegas economy.

Las Vegas Convention and Visitor Authority data show the destination hosted roughly 6 million convention attendees in 2025, a figure that nearly matched 2024 levels and helped offset some of the leisure tourism declines.

Though still below the pre-pandemic peak of about 6.6 million convention visitors in 2019, the strength in meetings and trade show business underscores Las Vegas’ continued importance as a major business travel hub.

That sector also provided monthly highlights. In December alone, convention attendance rose by roughly 9.6% compared with the prior year, even as overall visitation was down.

The economic context beyond falling Vegas tourism numbers

Several factors have contributed to the tourism downturn.

Industry analysts and hospitality executives say softening consumer confidence, higher travel and lodging costs, and an ongoing slump in international visitors — especially from Canada and Mexico, historically two of Las Vegas’ largest overseas markets — have played a role.

June 2025 LVCVA data showed overall visitation down more than 11% year over year, with international arrivals falling nearly 10%, and lodging metrics such as occupancy and RevPAR also decreasing.

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Gaming revenue: a bright spot in a down year

Even with fewer visitors, Las Vegas casino revenues held firm.

According to Nevada Gaming Control Board data, 2025 gaming revenue edged up about 0.03% from the prior year, ending at approximately $8.8 billion — the highest total on record for the corridor.

Operators credited strength in higher-end play, including premium slots and table games with favorable hold percentages, for supporting revenue even as foot traffic dipped.

Casino, tourism industry reactions and strategic shifts

Casino companies and tourism officials alike are responding to Las Vegas' challenging macro environment with strategic adjustments.

Some major resorts are leaning harder into premium player recruitment and high-end loyalty programs, while others are investing in non-gaming amenities — from headline entertainment residencies to expanded food, beverage, and experiential offerings — in a bid to broaden appeal.

To counter slowing demand, hotel operators and the LVCVA also launched promotional and marketing initiatives aimed at reinvigorating international travel and recapturing lost share in key overseas markets.

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One of the most successful promotions of last year was the LVCVA’s first-ever “Fabulous Five-Day Sale,” held from Sept. 22-26, 2025. 

The promotion was described as a strong success in terms of digital engagement and consumer interest. According to data released by the LVCVA, traffic to VisitLasVegas.com during the event was nearly four times higher than a typical week. Referrals from the sale page to hotel booking engines jumped roughly 120 times their normal levels, and users spent about five times longer browsing deals compared with pre-sale weeks. 

The Fabulous Five-Day Sale campaign featured more than 160 special offers across hotels, restaurants, shows, and attractions, and drove over 7.5 times more booking interest than Black Friday and Cyber Monday combined. 

Officials called the promotion a “huge success,” even as full economic-impact data (such as total revenue or room nights booked) was still being finalized with resort partners.

Beyond online metrics, industry reporting signaled upticks in actual bookings. Some resorts saw notable increases in room nights sold during the sale period compared with typical weekly volumes, and executives described the promotion as a meaningful boost amid a broader 2025 tourism slowdown. 

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While Vegas officials are continuing to analyze how many sales converted into confirmed stays and revenue, early indicators, especially the surge in engagement and lead activity, are being used to plan future, similar coordinated promotions.

The 2025 figures present a complicated picture: gaming revenue hitting record levels, even as the broader tourism engine slows.

As Las Vegas moves into 2026, hospitality leaders and market analysts alike will closely watch the city’s ability to reignite leisure demand, boost international arrivals, and capitalize on major events and conventions, from the annual Consumer Electronics Show (CES) to sporting events like F1.

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