Las Vegas sees dip in consumer spending as tourism declines, economic uncertainty lingers

Consumer spending in Las Vegas is showing signs of strain as a combination of falling tourist arrivals, persistent inflation, and economic concerns converges to slow activity in several retail sectors.

According to new data from the Nevada Department of Taxation, Clark County recorded a decline in sales across categories such as restaurants, auto dealerships, apparel, and household goods during the 11-month period from July 2024 to May 2025 compared to the same span the year before.

The downturn in spending affects both locals and tourists, though some categories are more closely tied to resident behavior. Food service and drinking establishments brought in nearly $11.7 billion in the period, a 1.6 percent decrease that translates to roughly $191.5 million in lost revenue. Clothing, shoe, and jewelry retailers reported $4.05 billion in sales, down $140 million.

Motor vehicle and parts dealers, a sector heavily reliant on local demand, saw revenues fall to around $6.05 billion, a $191.1 million drop. Furniture, electronics, and appliance stores also declined, generating $1.7 billion in sales, $28.5 million less than the prior year.

Bryan Wachter, president of the Retail Association of Nevada, attributed the dip in consumer activity to a shrinking customer base caused by lower tourist numbers and inflationary pressure on households.

“There are essentially fewer consumers in the Las Vegas area due to its sliding visitor volume, which itself could lead to cutbacks in local workers’ hours and paychecks,” he said in a Las Vegas Review-Journal report. He added that higher costs for necessities often lead people to delay or reduce discretionary purchases. “You start making trade-offs,” Wachter said.

Not all retail categories were affected. General merchandise outlets, which include big-box chains like Costco and Target, recorded $8.7 billion in sales over the same 11-month period, showcasing an increase of more than $487 million.

Clark County, home to about 2.3 million residents, also depends heavily on a steady influx of tourists to fuel its economy. Las Vegas drew approximately 19.5 million visitors in the first half of 2025, a 7.3 percent decline from the same period in 2024, according to figures from the Las Vegas Convention and Visitors Authority. June visitor volume dropped 11.3 percent year over year.

The area's economic challenges are reflected in its job market. As of June, Las Vegas posted an unemployment rate of 5.8 percent, the third highest among U.S. metro areas with populations over one million, based on federal labor data.

Las Vegas’ vulnerability during economic downturns has played out before. During the Great Recession, a real estate collapse left the region with soaring foreclosure rates, stalled developments, and an unemployment rate that peaked at 13.8 percent, well above the national high of 10 percent.

More recently, in April 2020, the first full month of COVID-19-related shutdowns, Las Vegas experienced a dramatic spike in unemployment, reaching 34 percent compared to the national rate of 14.8 percent that same month.

John Restrepo, a consultant and founder of RCG Economics, said the city’s dependence on discretionary tourist spending leaves it especially exposed to economic instability. “The final outcome remains to be seen,” he said, “but it’s not heading in a good direction at this point.”

Restrepo also pointed to global trade uncertainty and volatility in financial markets as contributing factors that have begun to erode consumer and business confidence.