Las Vegas tourism agency reports 14% revenue drop in Q1 as economic jitters hit travel

Tourism revenue for Las Vegas fell sharply in the first quarter of the Las Vegas Convention and Visitors Authority’s (LVCVA) 2025–26 fiscal year, with officials warning that broader economic anxiety is prompting travelers to cut back on discretionary spending.

The agency reported on Wednesday that quarterly revenue declined 14% to $91 million between July and September, its weakest first-quarter performance since 2021. Room tax and gaming fee collections, the LVCVA’s primary funding sources, also fell 14% to $73.9 million, while Convention Center rentals slipped 9% to $6.8 million and Las Vegas Monorail receipts dropped 13% to $5.7 million.

Hotel performance indicators pointed to a cooling market. Average daily room rates dipped nearly 7% to $137.85, and occupancy fell 7 percentage points to 76.1% for the quarter. Year-to-date, citywide visitation is projected at 28.9 million, down 7.9% from 2024. International traffic has been hit hardest, with Harry Reid International Airport reporting a 13.5% decline in overseas arrivals.

LVCVA President and CEO Steve Hill attributed the downturn to heightened financial uncertainty affecting household decision-making. “People are pulling back on discretionary spending. That’s affecting travel decisions, and we’re seeing it in the numbers,” he said. Concerns about housing costs, auto tariffs, and overall economic instability were also weighing on consumer sentiment, he added.

CFO Jim McIntosh said the agency had anticipated a decline but “not as much as what occurred,” noting that a strong early-2026 convention calendar could support a rebound.

In response to the slowdown, the LVCVA has doubled its marketing budget to $52.5 million and launched its largest promotional campaign of the year in early September. The “Fabulous Las Vegas” campaign features a 60-second national advertisement, paid influencer outreach, and a five-day sale across hotels, restaurants, and attractions aimed at reinforcing the city’s value appeal.

The board also approved a $300,000 payment to Westgate Las Vegas to secure parking for LVCVA staff during high-traffic trade shows, including next March’s ConExpo-Con/Agg, which will require significant outdoor exhibit space at the Convention Center.

Officials said they hope the expanded marketing push will help stabilize visitation heading into the winter season.