Las Vegas Faces Declining Tourism in US, But New Promotional Campaign Can Supercharge Travel Industry

Las Vegas faces declining tourism in the US, with hotel occupancy and room rates dropping for several months in a row. Despite these setbacks, the city is launching a new promotional campaign aimed at supercharging the travel industry. The “Welcome to Fabulous Las Vegas” campaign focuses on evoking nostalgia and emotional connections to remind potential visitors of the city’s iconic appeal. By tapping into the sentiment of past experiences, this campaign aims to reinvigorate Las Vegas’ tourism sector and attract more visitors. With a strategic focus on highlighting the city’s unforgettable experiences, from resorts to entertainment, the new campaign seeks to combat the decline in tourism and boost the local economy. While the road to recovery may take time, Las Vegas is betting on this emotional and targeted approach to overcome the challenges facing the tourism industry and restore its position as a leading destination.

Las Vegas has been experiencing a decline in hotel occupancy for seven straight months, with some experts wondering if this trend will continue. Despite these challenges, the city is launching a new campaign to bring tourists back. The “Welcome to Fabulous Las Vegas” campaign aims to evoke nostalgia and emotional connections with visitors. But with changing tourism dynamics and rising costs, only time will tell if this strategy will succeed in attracting tourists back to the city that once symbolised ultimate entertainment and escape.

Declining Hotel Occupancy: A Sign of the Times for Las Vegas

Las Vegas has faced a continuous dip in hotel occupancy, with data from CoStar showing that the city has experienced a year-over-year decline for seven consecutive months, with preliminary figures for September forecasting an eighth straight month of decline. The September occupancy rate is down 7.2% compared to the same period in 2024. While the city saw a steep decline in June with a 14.5% drop, it continues to face challenges as it struggles to regain its former peak. This trend contrasts sharply with the national hotel occupancy market, which has remained steady.

Despite these setbacks, Las Vegas is attempting to regain its footing with a new campaign aimed at attracting tourists. The city’s hotel occupancy struggles reflect a shift in both domestic and international tourist behaviour. The trend highlights that the city’s tourism landscape may need a new, more compelling approach to appeal to modern travellers.

Changing Consumer Habits: Budget-Conscious Domestic Tourists

Andrew Woods, Director of the Center for Business and Economic Research at the University of Nevada, explains that domestic tourists are becoming more budget-conscious. This shift is one of the key factors driving the lower visitations to Las Vegas. Although people are still travelling, they are more selective about where they spend their discretionary income. Las Vegas, with its rising prices and perception of being less affordable than destinations like Orlando or Honolulu, has been impacted by this change in consumer behaviour.

As consumers increasingly look for more affordable vacation options, Las Vegas may have to rethink its pricing strategy and market communication. By addressing these new priorities and making the city more affordable for tourists, Las Vegas could reverse the recent decline in visitation and regain its status as a go-to tourist destination.

Canadian Tourism Declines: A Key Challenge for Vegas

Another contributing factor to Las Vegas’ recent dip in tourism is the decrease in Canadian visitors. Canadian tourism to Las Vegas has fallen by 19.1% year-to-date, with Canadians traditionally representing around 12% of the city’s international visitors. The decline can be attributed to external factors beyond Las Vegas’ control, such as the economic fallout from the trade war and global political tensions.

With international tourism accounting for a significant portion of its visitor base, Las Vegas must address this challenge by creating stronger international marketing efforts. As Canadian tourism continues to drop, Las Vegas will need to diversify its tourism base and attract visitors from other regions to mitigate the impact of the downturn from this important market.

A “Fabulous” Campaign to Rekindle the Magic of Vegas

In response to the ongoing downturn, Las Vegas is leaning heavily on nostalgia with its new “Welcome to Fabulous Las Vegas” campaign. This emotional approach seeks to reconnect potential visitors with the city’s glory days, when Vegas was known as the ultimate escape and entertainment hub. The campaign draws on powerful emotional triggers, reminding people of past trips to the city and highlighting the unforgettable experiences Vegas offers.

Amanda Belarmino, Ph.D., Associate Professor of Hospitality at the University of Nevada, highlights the effectiveness of nostalgia in tourism marketing. When tourists associate a destination with personal memories and emotional connections, they are often less price-sensitive. This emotional appeal could prove critical in drawing visitors back to Las Vegas and reviving its once-thriving tourism sector.

The “Fabulous 5-Day” Sale: A Strategic Move to Boost Bookings

To further capitalise on the nostalgia-driven campaign, the Las Vegas Convention and Visitors Authority (LVCVA) launched the “Fabulous 5-Day” sale in September. This event, which offered discounts on resorts, restaurants, and entertainment, is aimed at encouraging visitors to return to the city. The LVCVA reported that the sale was successful, driving “7.5 times more booking interest than Black Friday and Cyber Monday combined.”

This city-wide sale represents a strategic move to remind tourists that Las Vegas still offers exceptional experiences at every price point. Despite the ongoing declines in occupancy, the success of the sale shows that there is still strong interest in the destination when the right promotional offers are in place. As part of a broader strategy, Las Vegas aims to re-establish itself as the ultimate destination for unforgettable experiences, regardless of budget.

Tech Innovations and Automation: Las Vegas Reinvents the Visitor Experience

In addition to marketing efforts, Las Vegas is embracing technology to redefine the visitor experience. From AI-powered smart radios to RFID-enabled chips and digital wallet payments, the city is incorporating cutting-edge technology to enhance guest services and streamline operations. Relay CEO Chris Chuang likens these advancements to moving from “the flip phone experience to the iPhone,” illustrating the significant technological upgrades underway.

These technological advancements aim to improve the guest experience by providing seamless interactions, improving safety protocols, and allowing visitors to engage with the city in innovative ways. However, this shift towards automation also raises concerns about the potential for job displacement in the hospitality industry. Despite these concerns, the hope is that these technological upgrades will help modernise Las Vegas and appeal to younger visitors who expect a more tech-forward experience.

Can Las Vegas Reinvent Itself and Overcome the Challenges?

Despite the current tourism downturn, it is premature to label Las Vegas’ situation as a full-blown crisis. The city’s core economic driver—gaming—continues to perform strongly. In August 2025, Clark County casinos earned $1.03 billion in gaming revenue, marking an increase of 5.3% from the previous year. This consistent revenue stream suggests that while visitation has softened, the city’s gaming market remains robust.

Moreover, event-driven and convention travel continues to show growth, which is a positive sign for the future. As Andrew Woods points out, Las Vegas has seen solid revenue from these high-margin segments, indicating that the city’s fundamental economic health remains strong despite declining tourist numbers. These developments suggest that Las Vegas may be undergoing a shift in behaviour rather than experiencing a full-scale downturn.

Time Will Tell If Las Vegas Can Bounce Back

As Las Vegas struggles with declining hotel occupancy and changing tourism patterns, its response through targeted campaigns and technological innovation highlights a city that’s adapting to new realities. The “Welcome to Fabulous Las Vegas” campaign and strategic sales events have shown that there is still demand for the city’s unique offerings. However, only time will tell if these efforts will be enough to restore the city’s tourism numbers to pre-2025 levels. With its strong gaming revenue and growing convention business, Las Vegas remains resilient, but it will need to continue adapting to changing consumer preferences if it is to fully recover.

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