Published on: August 23, 2025, 02:12h.
Updated on: August 23, 2025, 02:12h.
- Decline in Las Vegas tourism prompts a strategic rethink on customer engagement
- Canadians are traveling to Las Vegas less frequently
- Professional sports are increasing casino visitors
As Las Vegas casino operators disclosed their Q2 results in late July, a new analysis from Octus Research highlighted that both MGM and Caesars are facing a decrease in visitor numbers, leading to a strategic re-evaluation of their customer attraction and retention strategies, with Canada playing a significant role.
Tourism Trends Showing Decline
Both resorts have reported midweek dips in occupancy, fewer international visitors particularly from Canada, and diminishing appeal of their value-tier services. Key findings from the earnings report indicate that MGM and the wider industry must be more deliberate in attracting value-driven clientele.
Although some observers in Las Vegas dismiss claims about the city’s troubles, asserting that it’s overpriced and that younger generations are less inclined to visit for gambling, Casino.org’s Devin O’Connor has documented significant declines in tourism, with July marking one of 2025’s least favorable months for foot traffic.
Varied Perspectives on Sin City Tourism
The Octus report, reflecting MGM and Caesars’ earnings, showed that visitor numbers in June 2025 fell by 11.3%. Each month of 2025 has shown a downward trend in visitor numbers. MGM CEO William Hornbuckle noted that “value-oriented establishments” particularly susceptible to economic fluctuations are experiencing heightened Average Daily Rate (ADR) pressures.
Caesars reported 97% occupancy compared to 99% in the same quarter of the previous year. The company started off with a robust April, but both May and June saw declines. Caesars Entertainment CEO Tom Reeg mentioned during the earnings call that while “forward booking numbers have stabilized, it is not indicative of a robust turnaround; more comparable to ‘patching a tire with a slow leak.’
Canada’s Role in the Decline
Several factors are contributing to the decrease in Canadian travel to Las Vegas. Airlines like Air Canada and WestJet have reported declines in passenger numbers to the city this year.
The Octus report states: “Reeg noted that international business is softer, particularly from Canada. During Q2, Caesars experienced a reduction of 27,000 room nights, with Canadians being a “notable segment of that,” despite making up only “3% or 4% of the overall figures.” He added that the overall performance of the company does not indicate concerns about U.S. consumers as a whole.
Steve Hill, President and CEO of LVCVA, indicated that Canadian tourist numbers have decreased by approximately 15% so far this year.
According to Kyle Owusu, CFA, Director of Credit Research at Octus, two critical factors influencing the continued drop in Canadian visitors are the state of the Canadian economy and the negative sentiment from Canadians towards U.S. President Donald Trump, who has made public remarks about Canada becoming the 51st state and intensified tariff disputes.
The Impact of Political Sentiments
There is noticeable discontent among Canadians, prompting a shift toward domestic travel or to destinations in Europe, coupled with a heightened focus on “buy Canadian” initiatives.
“My baseline scenario anticipates continuous year-over-year declines through the first half of 2026, followed by a stabilization phase in the latter half of 2026. However, predicting travel trends from Canada to the U.S. remains complex due to emotional factors at play,” Owusu mentioned.
“I believe that shifts in booking patterns will necessitate changes in how Las Vegas establishments market and price their offerings for Canadian guests, although this varies by property type. Canadian visitors constitute a small percentage of overall Las Vegas traffic, so if certain establishments are performing adequately with U.S. patrons and other international travelers (excluding Canada), operators may feel comfortable maintaining their pricing strategy,” he said.
Re-establishing Las Vegas as a value destination, rather than retaining its pricey luxury image—amidst grievances concerning high resort fees and food and beverage costs—will be crucial in attracting more Canadians, Owusu emphasized.
Enhancing Las Vegas’s Value Appeal
“While difficult to quantify, re-establishing the value-oriented appeal is vital. Las Vegas has seen price hikes over the past four years, especially in the hotel and food sectors,” said Owusu. “Eventually, there will be a limit on how much value can be provided relative to the costs asked from guests.
“Should we face a more uncertain global trade climate, restoring the allure of Las Vegas as a value destination will be essential for most (if not all) properties not targeting wealthy or luxury clientele, and as we appear to move into a less predictable atmosphere, maintaining this shift in perception will be paramount for operators in 2026.”
On a broader scope regarding visits to the Vegas Strip, Owusu noted that: “The central takeaway is that casinos focused on luxury customers have largely avoided the pressures impacting travel to destinations.”
Professional Sports Teams Driving Interest
The presence of professional sports franchises in Las Vegas also plays a pivotal role in attracting Canadian visitors, according to a Toronto marketing expert. With the NFL’s Las Vegas Raiders gearing up for a new season and the NHL’s Vegas Golden Knights set to begin in October, the excitement is palpable.
A new Major League Baseball team is slated to move into an exciting stadium, a 33,000-seat, fixed-roof ballpark located on the Las Vegas Strip where the former Tropicana Casino once stood, designed by Bjarke Ingels Group (BIG) and HNTB, an architectural firm, set to open in 2028.
“Our primary goal is to drive clientele to the casinos,” stated Lora Green, one of the managing partners at Casino Marketing Group in Toronto, who curates exclusive, high-end trips for wealthy gamblers at luxurious casinos like Caesars Palace.
“With the NFL, NHL, and MLB all present in Las Vegas, it provides a fantastic attraction for our clients. They can experience live sporting events and then return to the casino to gamble, hoping to enjoy wins on both fronts—supporting their teams and winning at the tables.”