Las Vegas hotels roll out aggressive promotions as tourism drops 12%

Las Vegas hotels are implementing significant discounts and promotional packages to combat a sharp decline in tourism, with July 2025 visitor numbers dropping 12% compared to last year and hotel occupancy falling to 76.1%, according to the Las Vegas Convention and Visitors Authority (LVCVA).

Steep decline prompts action

The tourism downturn has hit the city hard, with July marking the continuation of a troubling trend. The LVCVA reported that approximately 3.09 million visitors came to Las Vegas in July, down from 3.51 million the previous year. Year-to-date, the city is running 8% behind 2024’s visitor volume.

Hotel occupancy dropped from 83.7% in July 2024 to 76.1% this year, representing a 7.6% decline. Revenue per available room (RevPAR) fell even more dramatically, decreasing 12.1% to $117.77 per day, down from $134.05 last year.

LVCVA President and CEO Steve Hill attributed the decline to two primary factors: economic uncertainty keeping people home to stretch their budgets, and expensive federal visa policies deterring international visitors. A family of four seeking U.S. visas faces costs of approximately $1,150, plus lengthy processing times in non-waiver countries.

Major resorts respond with discounts

To counter the downturn, major Las Vegas properties are rolling out aggressive promotional campaigns:

Caesars Palace is offering up to 20% off for guests who book through November 3. The property has introduced tiered discounts, with additional savings for those who purchase 30 or more days in advance or stay three or more nights. The iconic resort is also promoting package deals that combine room discounts with show tickets and dining credits.

MGM Resorts has launched targeted programs for specific demographics, including special rewards for veterans featuring credit accelerators and room upgrades. The company is focusing on value-added benefits rather than just price cuts, emphasizing the overall experience value.

Westgate Resorts is attracting guests with dining and spa credits bundled into room packages, appealing to visitors looking for all-inclusive style experiences without leaving the property.

Customer perspective

Loyal MGM customer Steve Callister, who visits Las Vegas multiple times annually, supports the promotional efforts. “I think it’s something they probably have to do. You need to keep the numbers up, you’ve got a lot of competition here amongst hotels,” he said, noting that his recent Labor Day weekend visit seemed “much less crowded than normal.”

First-time visitor Christine Nicosia from Boston expressed surprise at the lighter crowds during what should be a busy holiday weekend. She suggested that experiential incentives could be effective: “If a hotel said ‘hey, we’ll give you tickets for this show if you book at our hotel,’ I think that’d be a great incentive.”

Broader industry response

Beyond individual property promotions, the LVCVA has dramatically increased its marketing budget by 30%, representing the largest increase in both percentage and dollar terms in the organization’s history. The campaign emphasizes that Las Vegas offers experiences for every budget, attempting to counter perceptions that the city has become too expensive.

Other properties are implementing creative strategies:

• Resorts World Las Vegas introduced a “No Resort Fees” package including complimentary self-parking and nightly resort credits
• Multiple hotels are waiving or reducing resort fees, which have become a pain point for budget-conscious travelers
• Properties are focusing on mid-week stays when occupancy drops even lower than weekends

Downtown struggles more

While Strip properties average 76% occupancy, downtown Las Vegas faces even steeper challenges with occupancy at just 63%, down from 67.8% last year. Downtown rooms averaged $87.69 compared to $90.77 in July 2024, with RevPAR falling 10.2%.

Looking ahead

The tourism decline reflects broader economic challenges, with Las Vegas serving as a bellwether for discretionary spending patterns. Average room rates have decreased 3.4% to $154.76, down from $160.15 in July 2024, but remain historically high compared to pre-pandemic levels.

Industry analysts note that while convention bookings remain relatively strong, providing some buffer against the leisure travel decline, the city must adapt to changing consumer behaviors and economic realities. The success of current promotional efforts will likely determine whether Las Vegas can reverse the downward trend before the crucial holiday season.

For now, travelers may find unprecedented value in Las Vegas as hotels compete aggressively for a shrinking pool of visitors, making it potentially an ideal time for budget-conscious tourists to experience the city’s offerings at reduced prices.

Image Sources: https://www.yahoo.com/news/articles/vegas-tourism-down-california-international-100000221.html

Category: Business
Subcategory: Tourism & Hospitality
Date: 09/1/2025