A warning light has flashed for the tourism industry in Las Vegas, the United States’ premier tourist city. Visitor numbers have plummeted, hotel occupancy rates are declining, and both road and air travel to the city have noticeably decreased. Analysts attribute this to a confluence of adverse factors, including soaring inflation, high interest rates, global political instability, and delays in visa issuance.

According to the Las Vegas Convention and Visitors Authority, the city’s visitor count in June dropped 11.3% compared to the previous year. Road traffic has also seen a clear decline. Traffic volume on Interstate 15 at the California-Nevada border fell by 4.3% during the same period, indicating a reduction in visits and inflows from Southern California residents, including those from Los Angeles and San Diego.

Air travel is no exception. The number of air passengers traveling to Las Vegas in June decreased by 6.3% compared to the previous year. Last year, more than one-fifth of air travelers to Las Vegas were California residents, with half of them coming from the Greater Los Angeles area. According to the authority’s demographic report, an estimated 30% of Las Vegas visitors last year were from Southern California.

Amid a turbulent summer, the phrase “only the casinos are thriving” has become a common refrain in Las Vegas. Casino revenue reached $1.16 billion in June, a 3.5% increase from the previous year, but this growth is attributed to excessive spending by a small number of visitors. The decline in tourism demand is not limited to Las Vegas but is evident across the U.S. This year, the U.S. is projected to lose $12.5 billion in international travel spending. One major factor contributing to the sharp drop in tourism demand is skyrocketing inflation. From exorbitant parking fees to hidden resort fees, $9 cups of coffee, and movie ticket packages priced at $279, there is virtually no price that hasn’t risen.

Political and economic uncertainty also plays a significant role. Trade disputes, tightened visa policies, and stricter border controls have led to a reduction of up to 20% in visitors from key international markets such as Canada, the UK, Germany, and South Korea. Julia Simpson, president of the World Travel & Tourism Council, emphasized, “While other countries are signaling a warm welcome to tourists, the U.S. government is hanging up a ‘closed’ sign.”