The Las Vegas Strip, a symbol of tourism, faces a downturn in hotel occupancy.
Las Vegas, July 29, 2025
Las Vegas is grappling with a significant decline in hotel occupancy as tourism drops sharply. The city has seen a 14.9% fall in hotel occupancy compared to the previous year and a worrying forecast of a 20% overall loss this summer. Factors contributing to this downturn include fewer international visitors and increased budget sensitivity among domestic tourists. Las Vegas officials are actively promoting attractions and offering deals to entice visitors back, while also facing challenges such as rising local unemployment rates.
Las Vegas is experiencing a significant tourism slump in 2025, joining other major U.S. cities such as Houston, New Orleans, and San Francisco. The latest data reveals a sharp hotel occupancy drop of 14.9% in June compared to the same month in 2024. Furthermore, early estimates for July show occupancy rates declining even further to 66.7%.
Analysts predict that Las Vegas may face an overall summer hotel occupancy loss of up to 20% compared to the summer of 2024. The downturn is largely attributed to a steep decline in international visitors, notably from Canada and other markets, alongside a reduction in demand from business travelers. Additionally, domestic tourists are becoming more budget-sensitive, impacting their travel decisions.
Las Vegas heavily relies on midweek conventions and weekend tourist activities. This dependence makes the current loss of volume-driven revenues particularly concerning for the hospitality sector. Despite these challenges, the city is actively promoting its attractions and keeping hotels and casinos operational. Various deals, including reduced resort fees and free parking, are being offered to entice visitors back to the Strip.
Other cities are facing similar challenges. In San Diego, the hotel occupancy rate dropped to 71.6% in June 2025, reflecting a 13.8-point decrease from the previous year. Similarly, San Jose struggles with a low occupancy rate of about 59% due to fewer corporate events and shifting business travel habits.
In contrast, San Francisco reported a notable increase, with a hotel occupancy rate of 72.2%, which indicates a recovery fueled by corporate visitors and large events. On the other hand, Houston is facing alarming numbers, reporting a 20% decline in hotel occupancy to just 57.7% as of July 12, 2025. Meanwhile, New Orleans has witnessed a significant drop to just 53.8% due to a lack of festivals and cultural events.
Phoenix also reports a decline to 59.5% occupancy due to oppressive summer heat and weaken convention activities. As a result, the overall U.S. hotel industry is forecasted to stagnate through 2025, with the national hotel occupancy rate plummeting to 71.6% as of the week ending July 19, 2025.
Las Vegas is confronting potential longer-term impacts from the decline in international visitors, particularly from key markets like Canada and Mexico. As service disruptions and staffing cuts loom, the local unemployment rate has risen for two consecutive months due to the ongoing tourism downturn. The Culinary Union has raised concerns regarding the welfare of hospitality workers.
Despite these obstacles, local tourism officials express cautious optimism about future bookings. There is hope that event-driven tourism will recover in the second half of 2025, as the overall economic landscape continues to evolve amid uncertainties, including tariff threats and inflation affecting leisure travel to Las Vegas.
| City | June 2025 Occupancy Rate | Year-over-Year Change |
|---|---|---|
| Las Vegas | 85.1% | -14.9% |
| San Diego | 71.6% | -13.8% |
| San Francisco | 72.2% | +17.2% |
| San Jose | 59.0% | -Current |
| Houston | 57.7% | -20.0% |
| New Orleans | 53.8% | -Current |
| Phoenix | 59.5% | -Current |
As of July 2025, the hotel occupancy rate in Las Vegas is approximately 66.7%, reflecting a decline from previous years.
The slump is due to a decline in international visitors, reduced business travel, and heightened budget sensitivity among domestic tourists.
Officials are implementing promotional campaigns, keeping properties open, and offering deals like reduced resort fees and free parking to attract visitors.
While challenges remain, local tourism officials are cautiously optimistic, particularly regarding event-driven tourism potentially rebounding in the latter half of 2025.
Universal to Build First Theme Park and Resort in Europe
News Summary A serious motorcycle and vehicle collision in west Phoenix left two individuals in…
News Summary Estevan Carreon, a former teacher in Glendale, AZ, was arrested after being accused…
News Summary Metro Phoenix's housing market is grappling with high demand, rising interest rates, and…
News Summary A man tragically lost his life following a collision with a light rail…
News Summary Phoenix is brimming with cultural events from July 28 to August 3. Highlights…
News Summary A shooting at a home in north Phoenix has resulted in one man's…