Las Vegas, once the epitome of affordable escapism, is grappling with a stark economic downturn as tourism numbers plummet and local businesses feel the pinch. Visitor volumes have dropped significantly in recent months, with hotel occupancy rates falling by double digits and consumer spending retracting amid broader economic uncertainties. This shift has left industry insiders puzzled, though a chorus of voices points to escalating costs and perceived value erosion as key culprits.

Data from the Las Vegas Convention and Visitors Authority reveals a 6.5% decline in overall tourism for the first half of 2025, exacerbated by an 11% drop in June alone compared to the previous year. Hotels are reporting empty rooms, and casinos are seeing reduced foot traffic, leading to layoffs and scaled-back operations. Economists note that this isn’t just a local anomaly; as NPR reported, Las Vegas often serves as a bellwether for national consumer confidence, hinting at wider U.S. economic woes.

The Toll of Price Gouging on Visitor Sentiment

At the heart of the slowdown lies what many describe as relentless price gouging. Longtime locals and visitors alike decry the transformation of the Strip from a budget-friendly playground to an overpriced gauntlet. Parking fees, resort charges, and inflated prices for basics like food and entertainment have alienated the middle-class tourists who once flocked here. Tony Dunst, a professional poker player and Las Vegas resident since 2010, vented on X, highlighting how these tactics—charging for parking, mini-fridges, and even sports viewing—have driven people away. “People get tired of it,” he posted in response to a Las Vegas Review-Journal article detailing the city’s economic brakes.

This sentiment echoes across social media and industry reports. Posts on X from accounts like Las Vegas Locally paint a picture of a tourism-dependent economy cooling rapidly, with big declines in visitor volume and rising unemployment. One such post noted a 23% revenue drop at Resorts World, attributing it to economic uncertainty and scorching summer heat, while another highlighted hospitality workers’ tips falling by over 50% due to fewer international visitors and inflation pressures.

Economic Policies and Global Factors Amplify the Slump

Beyond local pricing strategies, external forces are compounding the issues. The Trump administration’s tariffs and immigration crackdowns have been blamed for a 13% drop in international visitors, as reported by The Guardian. Canadian tourists, a vital demographic, are staying away amid trade tensions, with individuals like Winnipeg resident Martyn Daly cited in media as skipping their annual trips. Domestically, economic slowdowns—marked by high mortgage rates and inflation—have curtailed discretionary spending, leading to fewer conventions and leisure trips.

Axios has described this as a signal of a broader U.S. slowdown, with convention attendees and hotel bookings notably down. Even as some cheaper off-Strip areas see a boom, per reports from 102.7 VGS, the core Strip suffers, with real estate markets showing signs of strain as tourism slumps impact housing prices, according to the Las Vegas Review-Journal.

Industry Responses and Paths to Recovery

Casino executives are scrambling with increased marketing and promotions, as noted in Travel Weekly, aiming to lure back value-conscious travelers. Yet, critics argue that a fundamental refocus on affordability is essential to avoid a permanent decline. Business Insider explored the Strip’s survival amid these challenges, finding clear problems like high prices deterring gamblers and diners.

Union leaders, per Fox News, point to new labor contracts and high food prices as additional burdens. As unemployment rises among service workers, the city’s glow-up—shifting from seedy vice to polished entertainment—may have backfired, making it resemble pricier competitors without unique appeal, as discussed in X posts and SFGATE.

Looking Ahead: Risks and Opportunities

The ripple effects extend to real estate, with experts warning of potential housing market risks if tourism doesn’t rebound, as analyzed in Norada Real Estate. While some blame post-pandemic shifts and automation for layoffs at properties like Fontainebleau, the consensus from sources like WebProNews is that corporate greed and alienated middle-class visitors pose the gravest threats.

For Las Vegas to recover, insiders suggest recalibrating toward value-driven experiences. As one X post lamented, the city risks losing its bargain allure forever if prices don’t adjust. With no clear end to the slowdown in sight, the stakes are high for this tourism powerhouse.