Las Vegas, long celebrated as an affordable playground for travelers, is facing a downturn in visitor numbers as rising costs and controversial resort fees discourage tourists. For the first half of 2025, visitation fell by 7.3 percent compared with the same period in 2024, marking the steepest decline in years. June recorded an 11 percent year-over-year dip, while July is also expected to show little improvement once official figures are released.

Data from the Las Vegas Convention and Visitors Authority (LVCVA) cited by the Las Vegas Review Journal shows room occupancy has dropped 2.1 percentage points to 78.9 percent. Average daily room rates are down 5.5 percent to $185.24, and revenue per available room—a key profitability measure—has fallen by 7.6 percent. Passenger traffic through Harry Reid International Airport has also decreased by 4.1 percent, continuing a monthly decline since January.

Convention business and gaming revenues are the only bright spots. Conventions attracted 3.2 million visitors through midyear, up 1.5 percent, while Clark County gaming win edged higher by 0.2 percent. Still, those gains have not offset broader losses, particularly among casual leisure travelers who traditionally filled hotel rooms, restaurants, and shows.

Resort Fees at the Heart of Discontent

Industry experts argue that steep resort fees are a central reason behind the slump. Desiree Stokes Blum, CEO of EIG Inc., urged resorts earlier this summer to suspend these fees temporarily to help restore interest. So far, only Resorts World Las Vegas has acted, eliminating fees and parking charges. Most other Strip properties have resisted.

Leora Azoulay, president of Incentives by Design, said, “There are several of us in the industry that are very supportive of getting some kind of moratorium on resort fees. Anything that we can get the people to come back is important right now because right now there is at least a perception that we’re overpricing people.”

Azoulay criticized what she sees as “gouging,” noting that costs for basic items—like coffee or bottled water—are alienating visitors. “We can all remember back to the old days of Vegas when you went to Circus Circus for the $1.99 buffet. I don’t think any of us are expecting that again. But they’ve got to stop the gouging.”

Other travel professionals echo her concerns. Lena Napoleone, general manager of Gastaldi USA Inc., said explaining resort fees to her international clients has become increasingly difficult. “Hotels across the United States started adding these ridiculous charges as a resort fee. One of the things they added was free local calls. An international traveler doesn’t care about local calls. So it’s kind of an insult,” she said, adding that service levels and cleanliness have declined even as fees persist.

Tourists Voice Frustration

Visitors themselves are also taking notice of rising prices. Caitlyn Laney, who traveled from Arizona, recalled her shock at a $12 bagel and $4 sodas during her stay. “I definitely had a little bit of sticker shock,” she said. Makeyta Chism of Tennessee noted that show tickets and food prices were “much higher than last year.”

Social media has amplified these complaints, with one viral post pointing out a $26 minibar water bottle at the Aria. For many, these examples reflect a broader erosion of value in a city that built its reputation on affordability.

Local business owners are feeling the effects as well. Gift shop employee Mellissa Spurgeon observed fewer customers, attributing the slowdown to excessive prices across the Strip.

Mayor Shelley Berkley acknowledged concerns about “nickel and diming” but predicted the industry would adapt. “If you have to pay $70 for valet parking, you’re going to find out very quickly people don’t want to pay $70 for parking,” she said. “The gaming industry is pretty smart people, and I think they’ll figure it out without my input, but we need to be wary. We need bodies here in Las Vegas.”

A Reputation at Stake

Despite falling numbers, LVCVA President and CEO Steve Hill said surveys indicate visitor satisfaction remains high. Yet industry veterans warn that the city’s image is shifting. Nearly 90 percent of recent survey respondents labeled Las Vegas as too expensive, suggesting perception is becoming a barrier.

Blum and her colleagues argue that without significant action, Las Vegas risks losing its competitive edge to alternative U.S. destinations. They see resort fees as symbolic of a wider disconnect between corporate priorities and consumer expectations.

The Federal Trade Commission attempted to address part of the issue this May by mandating full disclosure of fees at the time of booking. While this rule prevents “bait and switch” tactics, the fees themselves—typically $30 to $50 per night—remain.

Industry executives continue to insist that holding the line on pricing is necessary for profitability, but critics warn that prioritizing short-term revenue could undermine long-term loyalty. As social media amplifies stories of $100 buffets and $9 coffees, the city’s once-legendary value appeal seems increasingly in jeopardy.