Las Vegas Strip Takes a Hit: Visitor Numbers Down, But Off-Strip Casinos Thrive

Sin City is feeling the pinch. Las Vegas tourism continues its slide, with visitor arrivals dropping noticeably in 2025 amid economic pressures, policy hurdles, and shifting traveler preferences. According to the latest data from the Las Vegas Convention and Visitors Authority (LVCVA), the city welcomed just over 35.4 million visitors from January through November 2025—a 7.4 percent decline compared to the same period in 2024. Projections put the full-year total at around 38.6 million, well below the post-pandemic peak of 41.7 million in 2024 and the pre-COVID high of 42.5 million in 2019.

The downturn has hammered key metrics on the Strip. Average daily room rates fell 5 percent, while revenue per available room plunged 8.5 percent. International tourism, a vital segment for high-end resorts, has been particularly hard-hit, with Canadian visitors alone estimated to drop 24 percent from 1.4 million in 2024. 

The LVCVA points to broader U.S. economic trends as a primary driver: “Las Vegas is often a reflection of the broader U.S. economy… shifts in spending and behavior tend to surface here first.” The LVCVA contends that compounding factors include new federal policies like the $250 Visa Integrity Fee in the One Big Beautiful Bill Act, which the authority warns sends a discouraging message to international travelers from countries such as Mexico, Brazil, and India.

This isn’t a sudden downturn—it’s a continuation of trends I’ve highlighted before. In my September 2025 article for the California Globe, “Las Vegas Isn’t Dead, Tourism Officials are Deaf”, I detailed a summer slump where visitation fell 12 percent year-over-year (July 2024-2025 data), Harry Reid International Airport traffic dropped about 4 percent, and Labor Day weekend saw fewer visitors than expected. 

My piece rightfully argued that excessive pricing, resort fees, surcharges, and declining service quality—think $50 self-parking, $30 cocktails, hours-long check-in lines, and high minimum bets—have driven away the everyday gamblers and families who once fueled the city’s value-based appeal. 

While conventions rose 10.7 percent and state gambling revenues held strong at over $1 billion monthly, the Strip’s reliance on premium pricing and union-driven escalating costs has alienated its traditional base of tourists and Las Vegas locals. 

This alienation is specific to the Las Vegas Strip as off-Strip casinos are bucking the trend and posting strong results. Non-Strip, non-union properties are seeing booming business, supported by both locals seeking value and tourists looking for alternatives to the pricier central Strip experience. 

As noted in my California Globe piece, off-Strip venues like those operated by Red Rock Resorts have thrived by offering more affordable options without the heavy nickle-and-diming surcharges and extended wait times plaguing larger resorts. This contrast underscores a key point: while the iconic Strip struggles with its high-cost model, the broader Las Vegas market retains resilience through community support and value-driven alternatives.

Red Rock Resorts, which runs non-Strip venues like Red Rock Casino and Green Valley Ranch, achieved a record-breaking quarterly net revenue of $526.3 million in Q2 2025, marking an 8.2% year-over-year increase. The company saw further gains later in the year, with a 1.5 percent revenue uptick and a 38 percent surge in net profit in Q3, highlighting the strength of its locals-focused strategy. Similarly, Boyd Gaming, operator of properties such as Sam’s Town, Suncoast, and The Orleans, delivered its strongest quarterly growth in over two years for its Las Vegas locals segment in Q2, posting a net income of $150.4 million on $1.034 billion in revenue—a nearly 7 percent year-over-year (YoY) rise—with margins approaching 50%. 

Downtown Las Vegas saw a 10.48 percent YoY jump in June to $73.1 million and continued upward momentum with an 8.4 percent increase to $63.2 million in August.  The Boulder Strip also performed well, rising over 9 percent in August and posting a 3.6 percent YoY gain to $83.3 million in September. 

Overall, off-Strip areas consistently outperformed the Strip’s volatility, but Strip gaming revenue still eked out modest gains thanks to high-roller play in baccarat.

The LVCVA remains hopeful for a 2026 Strip rebound, banking on major events like WrestleMania 42, the Las Vegas Grand Prix, and World Cup matches to draw crowds. But without addressing root issues—overpricing, service lapses, and price-consciuos solutions to international visitors—the tourism engine that powers Nevada risks continued stagnation.

Tourism isn’t just a side hustle in Nevada; it’s the backbone. The industry generates nearly $100 billion in statewide economic impact annually, accounts for about 37 percent of the state’s GDP, supports roughly one in four jobs (over 400,000 positions), and contributes around 34 percent of general fund revenue through taxes and fees. It also drives 22 percent of all wages statewide. When Las Vegas visitation dips, the ripple effects spread far beyond the Strip—hitting hotels, restaurants, retail, transportation, and even unrelated sectors as consumer spending tightens.

For Nevada, the stakes are high. A prolonged tourism slump threatens not just jobs and wages but state revenues that fund schools, infrastructure, and services—no income tax means heavy reliance on tourism-related taxes. While diversification into manufacturing, clean energy, and logistics offers long-term promise, tourism remains the engine. For Californians who rely on quick Vegas getaways, the message is clear: Sin city isn’t dead, but it’s time for officials to listen to the market and restore the accessible, fun escape that built its historical reputation. Nevadans and visitors alike deserve a Vegas that delivers value, not excuses.