Las Vegas faces challenges with declining Canadian tourism
Local businesses and outdoor tour operators feel the impact as international visitor numbers drop in 2025
Las Vegas has long been a favorite destination for Canadian visitors, but 2025 has brought concerning trends that are affecting local businesses across the valley. Recent data shows significant decreases in Canadian tourism, creating challenges for the outdoor recreation industry and small businesses that have traditionally relied on international visitors.
The numbers tell the story
Canada has historically been Nevada’s top international market, with 1.49 million Canadian visitors traveling to Nevada in 2024. However, recent data from Harry Reid International Airport reveals troubling declines in Canadian passenger traffic for 2025.
February 2025 data showed significant drops across major Canadian carriers: WestJet experienced a 17% decline in passengers compared to the same period in 2024, while Air Canada saw a 5% decrease. Most dramatically, discount carrier Flair Airlines recorded a 55% drop in passengers, with only 11,700 travelers compared to the previous year.
The Las Vegas Convention and Visitors Authority reported that overall February visitor volume was down nearly 12% from 2024, with Canadian visitation down approximately 9% for the month. This represents a concerning shift from Canada’s typically strong market performance.
Impact on local businesses
The decline is particularly affecting Las Vegas’s outdoor tourism sector. Jared Fisher, owner of Escape Adventures, which specializes in tours to Red Rock Canyon, Bryce Canyon, and Zion Canyon, has noticed the impact on his business.
“Canada is one of our best clients,” Fisher explained. “We really rely on those people. They love America; they love our product. Our product is Red Rock Canyon, the Grand Canyon, Bryce Canyon, and Zion Canyon.”
Mandi Elliott from the Nevada Outdoor Business Coalition emphasized how vulnerable small businesses are to tourism pattern changes. “Small businesses are at the mercy of the tourism patterns,” Elliott noted. “When tourism suffers, our outdoor industry suffers.”
The challenge for smaller operators is their limited ability to reach international markets through advertising, making recovery from tourism downturns particularly difficult for local businesses.
Economic context and factors
Several factors appear to be contributing to the decline in Canadian visitation. The current geopolitical climate, including discussions around trade policies and tariffs, has created uncertainty that may be affecting travel decisions.
Tourism industry experts point to broader economic factors including inflation, cost of living increases, and a strong U.S. dollar as contributors to decreased international tourism overall. Consumer confidence issues and political tensions have also been cited as potential influences on travel patterns.
Amanda Belarmino, an assistant professor at UNLV’s William F. Harrah College of Hospitality, noted that Las Vegas tourism had already shown some softening before current political issues arose. She believes the situation reflects multiple economic and political factors rather than a single cause.
Industry response and initiatives
Las Vegas tourism officials are taking active steps to address the declining Canadian market. Travel Nevada has launched several initiatives including:
- Sales missions to Calgary, Red Deer, Edmonton, and Vancouver where officials met with tour operators
- Paid media campaigns with Travel Week, Explore, Air Canada Vacations, and Booking.com
- Participation in consumer Outdoor Adventure Shows in Vancouver and Calgary
The Las Vegas Convention and Visitors Authority has also implemented targeted outreach efforts. During recent NHL playoffs, the LVCVA coordinated with WestJet to provide complimentary drinks and snacks to travelers from Edmonton, specifically designed to make Canadian visitors feel welcomed.
“We love our Canadian visitors,” LVCVA officials stated. “We wanted to specifically find a way to make sure they felt welcomed, and that they expressed that feeling of joy when they got here, back to their friends and family at home.”
The broader tourism picture
The Canadian tourism decline is part of a larger shift in Las Vegas visitation patterns. Through March 2025, year-over-year visitation was down 6.9% compared to the first three months of 2024, while 3.7% fewer passengers flew through Harry Reid International Airport.
Hotel occupancy has also been affected, with February 2025 showing occupancy down 3.5% to 81.4%, and total room nights occupied falling 11% compared to the previous year.
Tourism plays a crucial role in Nevada’s economy, contributing $8.1 billion in revenue annually and supporting more than 58,000 jobs across the state. The outdoor recreation industry alone brings significant economic impact to Southern Nevada.
Looking forward
Despite current challenges, tourism industry leaders remain cautiously optimistic. LVCVA President and CEO Steve Hill noted that while the geopolitical atmosphere is concerning, one or two months of data don’t necessarily represent a permanent trend.
Industry veterans point out that Las Vegas has successfully weathered economic challenges before and entered 2025 in strong financial shape. The city’s advantage as an “escape destination” with easy access, plentiful lodging, and flexible booking options continues to appeal to travelers.
The LVCVA has responded by increasing its advertising budget by $37 million for 2026, demonstrating commitment to rebuilding international markets while maintaining strong domestic appeal.
Community impact
Jerry Perkins, president of the Las Vegas Tourism Guides Guild, reports that some businesses focused on international tourism are beginning to worry about their viability. While none have been forced to close yet, smaller operations are expressing concern about their ability to continue operations if trends persist.
Tour guides and local business operators note that some international travelers have expressed hesitation about visiting the U.S. due to various concerns, creating additional challenges beyond economic factors.
The path ahead
Las Vegas tourism officials are working to diversify international markets while strengthening relationships with traditional partners like Canada. The focus remains on promoting Nevada’s unique outdoor attractions and natural beauty while addressing concerns that may be deterring international visitors.
The situation highlights both the importance of international tourism to Las Vegas’s economy and the resilience that has helped the city overcome challenges in the past. As political and economic factors continue to evolve, the tourism industry’s ability to adapt and maintain strong international connections will be crucial for long-term success.
For now, local businesses continue to adapt while hoping that ongoing outreach efforts and changing circumstances will help restore the strong Canadian market that has been such an important part of Las Vegas tourism for many years.
Image Source: https://www.travelandtourworld.com/news/article/las-vegas-struggles-with-reduced-canadian-visitors-in-2025/
Category: Business, Local News
Subcategory: Tourism & Travel
Date: 06/26/2025
