Published on: November 13, 2025, 12:19h.
Updated on: November 13, 2025, 12:19h.
The Las Vegas Convention and Visitors Authority (LVCVA) reported disappointing yet anticipated figures at its quarterly meeting on Wednesday, indicating that tourism revenue for the initial quarter of the 2025–26 fiscal year has plummeted by 14% compared to the same timeframe last year.
The agency, primarily sustained by room taxes from visitors, revealed a total revenue of $91 million, a significant drop from $105.8 million. Revenue from room taxes and gaming fees decreased by $12.3 million (14%), totaling $73.9 million. Earnings from Convention Center space rentals fell 9% to $6.8 million, while the Las Vegas Monorail saw a 13% decline in revenue, dropping to $5.7 million.
This represents the lowest revenue for Q1 since the pandemic’s impact in 2021, which recorded room tax revenue at $67.1 million.
The fiscal quarter from July to September, coinciding with the third quarter of the calendar year, also showed concerning hotel performance metrics. The average daily room rate decreased nearly 7% year-over-year to $137.85, and occupancy rates dipped by 7 percentage points, down to 76.1%. Daily room occupancy fell over 8%, from 130,820 rooms in 2024 to 122,044 this year.
Optimism Amid Declines
In spite of the downturn, the LVCVA has increased its marketing budget to $52.5 million in an effort to mitigate the decline in visitors. A major campaign was launched at the start of September, focusing on affordability concerns and rebranding Las Vegas as a cost-effective destination.
Officials expressed optimism that this promotional effort will stabilize visitor numbers throughout the winter months.
Currently, annual visitation is anticipated to reach 28.9 million, reflecting a 7.9% decrease compared to 2024. The overall occupancy on the Strip has dropped by 3.3 percentage points to 80.4%, while the average daily room rate across properties has seen a decline of 5.1%, landing at $180.07. The international travel sector has been particularly affected, with Harry Reid International Airport reporting a 6.4% decrease in total passengers and a 13.5% drop in international arrivals.
LVCVA President and CEO Steve Hill linked the downturn to economic unpredictability, highlighting consumer apprehensions regarding housing costs, auto tariffs, and general financial instability.
“People are becoming more cautious with discretionary spending,” he noted. “This change is impacting travel decisions, and our statistics reflect that reality.”