Las Vegas is experiencing a significant drop in tourism, with a notable decline in Canadian visitors. The Las Vegas Convention and Visitors Authority reports that overall visitor numbers have decreased by more than 11 percent year-over-year. This decline is one of the most severe seen outside of the pandemic.
Airline data indicates that Canadian travelers are particularly avoiding the city. In June, Air Canada reported a 33 percent drop in passengers compared to the same month last year. WestJet, the largest Canadian airline operating at Harry Reid International Airport, experienced a similar decline of 31 percent. Low-cost carrier Flair saw an even steeper drop of 62 percent in passenger numbers.
Some U.S. travelers are also staying away from Las Vegas, citing dissatisfaction with rising fees and reduced perks for gamblers. However, resort operators emphasize that the decrease in Canadian visitors has significantly impacted their revenues.
MGM Resorts President and CEO Bill Hornbuckle noted that the decline in Canadian visitors began earlier this year, coinciding with the onset of trade tensions initiated by the U.S. government. "International visitation has been an issue, particularly earlier in the year, with Canada," Hornbuckle said. He added that the company has seen a drop in attendance at hockey games, which typically attract Canadian fans.
Thomas Reeg, CEO of Caesars Entertainment, echoed these concerns during a recent earnings call, stating, "International business, particularly Canadian, is softer." He attributed the lower occupancy rates in hotels to the decline in Canadian tourists, calling them a significant factor in the company's disappointing second-quarter results.
Local union leaders have labeled the downturn in Canadian tourism as the "Trump slump." Many Canadians are expressing their discontent with U.S. policies, particularly those of former President Donald Trump. Winnipeg resident Martyn Daly, who usually visits Las Vegas annually, stated, "We're pretty upset with what's going on in the U.S. and the disrespect that's been shown by the Trump administration towards Canada. I just feel obliged to do something — and one little thing I can do is not patronizing a place we enjoy."
Guy Kerbrat from Regina also canceled a planned trip to Las Vegas, citing his opposition to Trump's trade policies. "The thought of going down there right now — it doesn't make you feel warm and fuzzy. We just couldn't do it," he said.
The economic impact of the decline in tourism is evident in Nevada, where the unemployment rate reached 5.4 percent, the highest among U.S. states. U.S. Senator Catherine Cortez Masto recently visited Canada to discuss improving relations, acknowledging that the drop in tourism is affecting the local economy.
Economics professor Stephen Miller from the University of Nevada, Las Vegas, highlighted the importance of Canadian visitors, noting they contributed $3.6 billion to the local economy last year, supporting approximately 43,000 jobs. He stated, "The Canadian numbers have gone down dramatically and it's an area of concern for the casinos."
As the tourism slump continues, there are expectations for increased promotional efforts to attract Canadian visitors back to Las Vegas. However, many Canadians, like Daly, remain resolute in their decision to boycott travel to the U.S. due to political tensions. "I think it's great that we're using our voice," Daly said. "I think the only thing that Trump seems to understand is when people take action that hits them in the pocketbook."