Weaknesses in Las Vegas Tourism Forces Strategic Re-Think, Especially Regarding Canada
Posted on: August 23, 2025, 02:12h.
Last updated on: August 27, 2025, 01:32h.
- Downturn in Las Vegas tourism prompts strategic re-assessment on how to attract customers
- Canadians travelling to Las Vegas less
- Pro sports boosting casino traffic
With Las Vegas casino operators reporting Q2 earnings in late July, a new report by Octus shone a spotlight on how both MGM and Caesars were experiencing a downturn in the number of customers, prompting a strategic reassessment on how they are attracting and retaining customers, and Canada is a big part of that.

Tourism Numbers Have Been Softening
Both resorts have been experiencing midweek softness, reduced visitation from international travellers, especially from Canada, and a weakening in their value-tier offerings, the report said, with one of the the key findings from the earnings report being that MGM and the industry in general will have to be more thoughtful about how to attract value-oriented customers.
There are those in Las Vegas now who scoff at the narratives that Vegas is in trouble, that the town is over-priced, and that younger people are less interested in going to there to gamble.
However Casino.org’s Devin O’Connor has written several pieces on the state of Las Vegas tourism, with July being the second-worst month of 2025 in terms of foot traffic.
Mixed Bag of Opinions on Sin City Tourism
According to the Octus report, summarizing the MGM and Caesars earnings, June 2025 visitor volumes fell 11.3%. Las Vegas visitor volumes have declined each month so far in 2025. MGM CEO William Hornbuckle suggested during MGM’s call that “value-oriented properties” that are more sensitive to economic swings are experiencing relatively greater ADR pressure.
Caesars reported 97% occupancy compared with 99% in the same period a year earlier. The company started with a “strong April,” then May and June began to decline. Caesars Entertainment CEO Tom Reeg said during the earnings call that “the forward booking numbers have stabilized, but that it was not ‘some huge bullish turn.’ Rather, more ‘as if your tire had a leak and you patched it.'”
Canada Part of the Challenge
There are a lot of factors impacting the decline of travel by Canadians to Las Vegas. Canadian airlines like Air Canada and WestJet have reported drops in the number of passengers flying to Las Vegas this year.
According to the Octus report: “Reeg said the company’s international business is softer, especially Canada. Caesars was down 27,000 room nights during the second quarter, and Canadians were a “significant piece of that,” even though they are only “3% or 4% of the total pie.” He added that when he looks at the business as a whole, the company’s consolidated performance does not suggest that there is anything particularly concerning about the U.S. consumer.
Steve Hill, President and CEO of LVCVA, said that Canadian visitation is down roughly 15% to date.
Kyle Owusu, CFA, Director of Credit Research at Octus, points to two determining factors regarding a continued Canadian visitation decline: The state of the Canadian economy and the extent to which Canadians remain upset with U.S. President Donald Trump, who has made public comments this year about how Canada would be better off as the U.S.’s 51st state, plus ramping up a tariff war with Canada.

Trump Anger Factor
Canadians are angry, and there has been more of a focus on travelling domestically, or to places like Europe, then travelling into the U.S., on top of a nation-wide movement to “buy Canadian” in grocery stores.
“My base case is continued year over year declines through the first half of 2026 before the year over year trends begin to stabilize in the second half of 2026, but it’s hard to forecast destination travel trends from Canada to the U.S. with any degree of confidence given the high degree of human emotion involved,” said Owusu.
“I think the shift in booking behavior will change how Las Vegas properties market to and price for Canadian visitors, but it depends on the asset,” he said. ““Canadian volumes represent a low-single-digit % of overall Las Vegas visitation so if certain assets are performing well enough with U.S. consumers, or U.S. consumers and other international travels ex-Canada, and operators think they can get away with holding firm with regard to price then they probably will.”
Restoring Las Vegas as a value destination as opposed to its reputation as a expensive luxury destination, factoring in criticism over high resort fees and high food and beverage prices, matters a lot, and will entice getting more Canadians to come back, Owusu added.
Restoring Las Vegas as a Value Destination
“That’s hard to quantify percentage-wise, but restoring the value destination appeal matters a lot. Vegas has benefitted from price increases for the past four years, especially within the hotel, food and beverage business line,” said Owusu. “Eventually you start to hit a ceiling regarding how much value you can deliver in relation to how much you’re asking people to pay.
“If we are heading into a more uncertain global trade environment, restoring value destination appeal probably matters with regard to most (if not all) destination assets that aren’t catering to high end or luxury consumers, and we appear to be heading into an increasingly uncertain environment, so I think restoring Las Vegas’ value destination appeal is going to be front of mind for operators in 2026.”
On a broader note, regarding travel to the Vegas Strip, Owusu mentioned that: “The key takeaway is for now, casinos catering to luxury customers have been spared from the pressure affecting destination travel.”

Pro Sports Teams Having a Positive Impact
Pro sports teams in Las Vegas is another important factor in luring Canadians to the city, according to a Toronto-based marketer, with the NFL’s Las Vegas Raiders about to start a new season, and the NHL’s Vegas Golden Knights ramping up in October.
The new MLB baseball team is set to land in an exciting new stadium, designed 33,000-seat, fixed-roof ballpark on the Las Vegas Strip where the old Tropicana Casino used to be, designed by Bjarke Ingels Group (BIG) and HNTB, an architectural firm, in 2028.
“The key for us is to bring players into the casinos,” said Lora Green, one of the managing partners at Casino Marketing Group in Toronto, an exclusive service, where her company puts together white glove, exclusive trips for her network of high-roller gamblers to luxury casinos like Caesars Palace.
“So having NFL, NHL, and MLB in Las Vegas is a great draw for clients. They can enjoy a live sporting event and go back to the casino and gamble, hoping their teams win and they win in the casino as well.”
Last Comments ( 59 )
If the greedy Monopoly owners would get rid of the outrageous resort fees, parking fees, and lower food prices maybe that might help. Not even fun to go when your broke before yoy even get there. North Dakota MARINE VETERAN 94-98
Union workers are ruining Las Vegas. Unions greed for ever higher wages makes it impossible to offer food, hotel rooms, other services “for a bargain” as Las Vegas did in the past. If restaurants/casinos offered the bargain prices of the past while paying today’s Union labor prices they would operate at as loss and go out of business. Next time you’re shocked and disgusted at paying $85 for a simple pizza look at the food workers, all Union employees, and blame them. It’s the truth all the politically correct are afraid to mention as “the reason” Las Vegas is “nickel and diming” every visitor to death.
ICE running the streets in US Cities is definitely having an impact on tourism. Doesn't take a PHD to figure this out. Parking prices and high resort fees don't help either.
Talk to a lot of people that came to visit Las Vegas strip and disgusted with all the pot smoke smell and trash (takes the fun out of vacation if you don't like it which more people do not).
Exactly, Arthur — you’ve spotted how the issue goes well beyond Las Vegas. What you’re describing is the national side of the tourism slowdown: fewer Canadians crossing the border, fewer international arrivals overall, and ripple effects on states that depend heavily on tourism dollars. Here’s a polished draft you could use as a comment or short op-ed extension to tie Las Vegas’ struggles to the broader U.S. picture: --- “It’s Trump’s Economy That’s Driving Tourists Away” The old saying “It’s the economy, stupid” once explained downturns in simple terms. But in 2025, it’s clearer to say: “It’s Trump’s economy.” His inconsistent policies, tariff fights, and constant attacks on foreigners are discouraging people from coming to America and spending their money. This isn’t just a Las Vegas problem. Major U.S. destinations like New York, Florida, California, Nevada, and Texas are now reporting sharp declines in Canadian tourism—a vital market for our hotels, shops, and restaurants. Recent data shows Canadian road trips down 33% and air arrivals down 22%, the sixth straight month of decline. Canadians have always been reliable visitors, known for shopping and spending, but now they’re staying away. Instead of welcoming the world, Trump’s rhetoric makes the U.S. look unstable and uninviting. And when people don’t feel welcome, they simply go elsewhere. That means lost business, lost jobs, and less growth in the very cities that have built their economies on tourism. In short: it’s not just “the economy” anymore. It’s Trump’s economy—and Americans are paying the price. --- Would you like me to build this into a side-by-side breakdown showing how the downturn is hitting each of those states (NY, FL, CA, NV, TX), so you could drop that into discussions and make it really concrete?
Simple answer.... Do away with the silly fees and bring back the lower lodging and meal prices... Cheap drinks and comps willl bring people back... theres your answer
Executives, forgot plain and simple what Las Vegas is all about. GAMBLING!!!!! entertainment, buffets, free parking, free valet, complimentary water and coffee, comps for food, entertainment, and cocktails were all added to the gambling element to keep people in the casino gambling! Now there are 15 dollar vottles of water, 20 dollar beers, 35 dollar margaritas, resort fees, 80 to 100 dillar buffets, 200 to 900 ticket prices for sports, concerts, shows and having to pay for a cabana or a simple lounge chair by the pool. Then to top it off the hospitality is gone! Employees that depend on gratuity/tips for their income are NOT hospitable like the Las Vegas of years prior. Until corporate Las Vegas starts to understand that people will not pay these outrageous prices because there will be little money left to gamble! Good luck Las Vegas!
For real! I'm with the guy commenting above! It's like, we aren't stupid. We know exactly what's going on. Casino operators figured they could tighten the holds, take in record profits yoy, and that these "dumbasses" wouldn't realize that your now at 11%+ of a hold.... Or that you've moved more into high volatility games, added a third zero to roulette, pushed blackjack odds further into your favor, hit us with higher room rates, resort fees, parking fees, hell- I talked to a lady the other day who had to pay for the chair at the pool!!! Wtf! What kind of impression is that leaving on someone who worked their ass off all year, saved their money to come here, and you absolutely rack em for every gd red cent you can? Your out of your fu**** minds. It's the dumbest thing I've ever heard, and people have more options now. Indian reservation casinos are closer now then ever... Online gaming, that will give you pound for pound better action on your dollar then EVERY SINGLE CASINO in Vegas;without airfare or resort fees, or parking fees, or tipping, or $46 cocktails, or chair rental fees! Lol. You don't have to be an MIT graduate to do this kind of math..... Funny thing is, all you really hear about is the Resorts world CEO getting fired.... Meanwhile, allllll these dumb fucks should have been on the block. Greedy, short sided, over paid, dumb assholes is who you got making choices like that. I mean, Jesus, the city was built by gangsters.... You want the secret on how to get people in the doors? Bring in some real life hustlers! Guys that understand the grind. Service industry pros understand it. Call them, and save the city! Just my opinion.
CASINO CORP MANAGEMENT TOTALLY OUT OF TOUCH WITH REALITY.....ONCE A CUDTOMER WRITES YOU OFF....GOOD LUCK TRYING TO GET TEM BACK.....VEGAS VIBE IS GONE....ALMOST NO ONE WATCHING THE BELLAGIO WATER SHOW CASINO CORPS TRULY DESERVE WHAT IS COMING TO THEM. WE USED TO GO EVERY YEAR..FOR 15 YRS....NOW WERE DONE WITH VEGAS. NO MORE.
Since most foreign travel plans are made 6-9 months ahead of time, there was still a “Honeymoon Phase”, that will drop Off an even steeper cliff by late September. Nevada’s Resort Association Members were major contributors & still express support for the very person responsible for the impending carnage . It isn’t just Canadians. International travel to a Country streaming soldiers into the streets of Cities he deems “enemies” certainly isn’t attracting tourism.
I find this article downplaying the out right Greed that MGM and Ceasers has been playing up for the last five years, then to turn it around and blame it on the Canadians! Classic MgM and Ceaser exec style of thinking, instead of actually taking a walk out of their glass offices to the strip and actually walking with the commoners. How dirty it’s becoming, the weed stench you have to walk through, the prices of a bottle of water, and food. The amount of construction going on daily. Well let’s start there.. also the conventions that Las Vegas has lost in the past five years… are you going to blame it on the Canadians? Vegas has lost some big ticket items due to their own Greed and others now have them. MGM, Ceasers, Las Vegas Convention Authorities well… what have you been doing? CES was an absolute joke this year. Need I go one. When you write an article, maybe look at the whole picture and Not allow these Execs here blame it on everyone else. Take a walk in your own streets man and see how bad it is. Business 101 for Dummies, don’t go in the back door, go in the Front Door.
I was there a few months ago and was gouged left and right. $30 to park, $9 for a soda, I used to go multiple times a year. I will not be back.
Yep put the blame where it belongs , greedy casino corporations nickel and diming everything . I worked on the strip in high end retail and canadians were the cheapest , so really no big loss except to them
Prices prices prices.... That is it, other stuff is minimal.... Live here been seeing price gouging for years, they've lost their minds.... miss the old Vegas.....
Yeahhhh, let's just blame Canada, and politics, and anything other than the casino companies that have finally squeezed all the blood from the proverbial turnip (or whatever the metaphor is). And then, by all means, let's continue business as usual next year.