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Rising travel costs and strict visa rules drive tourists away as Las Vegas hotels sit half-empty in summer 2025

Las Vegas
Las Vegas

Las Vegas has always been the kind of place that promises excitement no matter the season.

Flashing lights, celebrity-chef restaurants, high-stakes gambling, wild pool parties—you name it. But this summer, something feels off.

The crowds are thinner, the Strip’s buzz is a little quieter, and hotel rooms that once booked out months in advance are sitting empty. What’s going on?

According to the latest stats, hotel occupancy in Vegas slumped to just 67% in July 2025.

That’s dangerously low for a city built on tourism.

And experts are starting to worry this isn’t just a seasonal slowdown—it might be a sign of deeper trouble.


Prices Are Sky-High—and Tourists Are Tapping Out

Let’s start with the most obvious issue: it’s just too expensive.

Sure, average hotel prices may have dipped slightly, but the overall cost of a Vegas getaway? Still sky-high.

Visitors are getting hit with massive resort fees, which often don’t show up until you’re checking out.

Meals, shows, and even basic attractions have gotten pricier too.

As one analyst put it, “This feels a lot like the pricing bubble of 2008–2009—when prices kept rising, even though demand was falling.”

Bottom line? For many would-be tourists, Vegas has priced itself out of reach.


Where Did All the Foreign Tourists Go?

Vegas didn’t just lose some domestic tourists—it’s also seeing a major drop in international visitors.

That’s a big problem because travelers from abroad usually spend more and stay longer.

This summer, Canadian tourist numbers dropped a jaw-dropping 55% compared to last year.

That’s a huge hit considering Canadians were once among Vegas’s most frequent guests. And it’s not just Canada—fewer visitors are coming from Mexico and even China, once a booming source of high-spending travelers.

So, what’s keeping them away? That leads us to another issue…


The U.S. Is Becoming Less Welcoming

A growing number of analysts say America has started to push tourists away, especially with new federal policies that feel more hostile than hospitable.

The government has rolled out new “visa integrity” fees that can reach $250.

Add to that stricter immigration checks and growing reports of racially biased visa denials, and it’s no surprise international travelers are rethinking their plans.

Some in the media are even calling it “Anti-Tourist America.” It’s not just about bureaucracy—it’s about perception.

And right now, the perception is that visitors, especially from Asia and Latin America, are less welcome.


Even “Birth Tourism” Is Being Targeted

One lesser-known segment of tourism is also under fire—birth tourism.

That’s when expectant mothers travel to the U.S. so their baby can be born on American soil and automatically become a citizen.

While this practice has quietly existed for years, it’s now become a political target. The U.S. government has vowed to crack down hard, calling it an exploitation of immigration law.

Though it’s a niche area of tourism, the move sends another message: the U.S. isn’t in the mood to roll out the red carpet anymore.


Can Vegas Bounce Back—Or Is This a Permanent Shift?

Some believe this is just a market correction and that Vegas will find its rhythm again.

After all, it’s reinvented itself before—from mob town to mega-resort hub to family-friendly entertainment zone.

But others worry this slump reflects a permanent change in how people travel—and how they view Las Vegas.

Glitz alone may no longer be enough.

If prices stay too high, policies too harsh, and international goodwill too damaged, tourists may keep walking away from the tables.

One expert summed it up bluntly: “Vegas used to be a gamble worth taking.

Now, more and more people are cashing out early.”