≡-Las Vegas Hotels Shattered By Devastating Drops In Occupancy And Revenue As Economic Collapse And Vanishing International Visitors Inflict Havoc – Viral of Today

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Home » HOTEL NEWS » Las Vegas Hotels Shattered By Devastating Drops In Occupancy And Revenue As Economic Collapse And Vanishing International Visitors Inflict Havoc Tuesday, July 22, 2025And now, as the city struggles to cope with one of its lowest points in recent history, Las Vegas hotels are being crushed by falling occupancy and revenue. The financial crisis, which has created uncertainty and chaos in the economy, has taken a heavy toll on the tourism industry. This decline is being compounded by the disappearance of overseas guests, who are hesitant to travel because of fears surrounding the global economic picture. The result? Las Vegas—formerly a bustling hub for tourists—has seen its hotels dive into performance woes, with occupancy and revenue dropping to unprecendented levels. The net result is that in Las Vegas, just as in other key U.S. tourism markets, these crises such a destruction that not only Las Vegas but handful of the major U.S. tourism-driven properties are seeing, demonstrating how deeply these crises cut.Recent preliminary data from STR highlights that Las Vegas experienced a 14.9% decrease in occupancy during June, marking its biggest monthly decline of 2025. The downward trend continued into July, with a 16.8% drop in occupancy during the week ending July 5, leaving the city with a rate of just 66.7%. Additionally, revenue per available room (RevPAR) fell by 28.7%, dropping to $102.75. This downturn in Las Vegas has significantly impacted the broader U.S. hotel market, contributing to a wider decline in national hotel metrics. If Las Vegas’ performance were excluded, STR reports that the U.S. would have seen a flat RevPAR growth for the week.This troubling trend began in May, when the Las Vegas Convention and Visitors Authority (LVCVA) revealed that visitor numbers had decreased by 6.5% year-over-year, totaling 3.4 million visitors. The primary contributor to this decline has been the reduction in international tourism, particularly from Canada.The U.S. International Air Travel Statistics program has shown consistent drops in international arrivals to Las Vegas throughout 2025. June alone saw a significant 13.2% decrease in overseas visitors. According to experts like Stephen Miller, director of research at the University of Nevada Las Vegas, rising uncertainty has played a major role in the reduced number of international travelers.Some experts view this downturn as part of the natural seasonal cycle, with Las Vegas typically seeing lower demand during the spring and summer months. However, the severity of the decline has raised concerns among industry leaders. John DeCree, head of institutional investor research at CBRE Capital Advisors, suggests that the current trends may simply reflect a return to normalcy after a period of pent-up demand post-pandemic.Steve Hill, CEO of LVCVA, acknowledged that the economic difficulties affecting Las Vegas are not isolated but are part of a larger national trend. As consumer confidence decreases, particularly among budget-conscious travelers, demand for leisure travel has softened. Anticipating a slow summer, LVCVA boosted its marketing budget by 30% in May, marking the largest increase in its history. These marketing efforts focus on appealing to a broader range of visitors and have included additional investments in online travel agencies (OTAs) to enhance Las Vegas’ visibility.In addition to LVCVA’s marketing strategies, individual resorts in Las Vegas are responding with their own promotional tactics to mitigate the downturn. Resorts World Las Vegas, for instance, introduced the “All Resort, No Fees” package, which eliminates resort fees through early September. This package, offering self-parking and nightly resort credits, has proven popular, particularly with local visitors. The resort has also expanded its offerings, introducing “power lunch” deals and discounted pool day passes to attract more guests during the day.Other resorts are also launching value-focused promotions. Sahara Las Vegas is giving guests the option to waive resort fees or receive a $50 daily dining credit. Caesars Entertainment is offering a 15% discount on rooms, as well as 20% off spa services and attraction tickets. Meanwhile, The Strat has rolled out a “Summer of Value” package, featuring discounted midweek and weekend rates, including resort fees and access to the Tower Observation Deck.Despite these challenges, there is optimism for Las Vegas’ future. Hill pointed out that the city’s meetings and trade shows schedule through 2026 remains strong, with convention attendance rising by 10.7% year-over-year in May. DeCree also highlighted that forward bookings for 2025 and 2026 are promising, particularly within the event and group sectors, which account for a significant portion of the city’s revenue. However, any decline in group bookings or room rates would be a concerning signal for the market.The economic collapse and a steep decline in international visitors are wreaking havoc on the Las Vegas hotel industry that experts believe will last awhile. But the problems are crippling not just the city’s tourism industry, but major destinations throughout the United States.How quickly Las Vegas gets through these uncertain times by adjusting and innovating will be important as the destination works to rebound. The City’s adaptability and ability to adapt to market conditions will be instrumental in working through this current slowdown and in the long run, to be able to compete as a top global destination for Las Vegas for years to come.

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