Las Vegas Tourism Slump Continues Despite Lower Hotel Rates

Las Vegas experienced a continued slump in tourism in August, with visitor numbers and hotel occupancy rates declining despite efforts to attract travelers with lower hotel prices. The city saw 3.03 million visitors in August, a 4.3% decrease compared to the previous year and a drop from July. Airport passenger counts also fell by 9% year-over-year.

The average daily rate for a Las Vegas hotel room in August was $150.32, approximately $7 less than in July. However, this price reduction did not translate into increased bookings, as occupancy rates fell by 3.4% year-over-year to 74.1%. Weekend occupancy remained strong at 85%, but weekday occupancy dropped to 69%. Consequently, revenue per available room decreased to just over $111.

In contrast to the broader tourism trends, Nevada casinos reported strong gaming revenues. In August, casinos won approximately $1.27 billion, a 3.1% increase from the previous year. This marks the 66th consecutive month that statewide gaming win has exceeded $1 billion. Total win in August 2026 was 32.8% higher than in August 2019.

Officials have cited various factors for the tourism downturn. Steve Hill, chief executive of the Las Vegas Convention and Visitors Authority (LVCVA), has pointed to increased jet fuel and gasoline prices. Additionally, a significant drop in Canadian visitors, who represent the largest segment of international tourism to Las Vegas, has contributed to the decline. Visitor numbers from Canada have fallen 30% since 2019.

Despite the challenges, there are some indications of a potential rebound. Data from travel provider Priceline indicated that Las Vegas was the most searched destination year-over-year last month. The LVCVA's chief executive, Steve Hill, previously defended the city's value proposition in 2025, arguing against claims that Las Vegas is overpriced and stating that customers' concerns about specific high costs do not accurately reflect the overall value offered.