Las Vegas has been synonymous with getaways since its glamorous heyday in the ’60s. Since it was once such a popular destination, it may seem odd that the city needs to launch an ad campaign to get people to visit. Surprisingly, though, that’s exactly what’s happening.
The new campaign, called "Welcome to Fabulous Las Vegas,” is centered around showing visitors that Vegas still has value. (1) To do that, it will offer incentives and promotions for visitors.
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The campaign is necessary because Vegas has recently fallen out of favor — but, its chances of success may not be high given the fact that the problem is not isolated to Sin City.
Many tourist hotspots across the United States are seeing big declines in visitors, especially international ones. This is not only doing substantial damage to local businesses, but is also damaging the economy as a whole.
Here’s why fewer people are visiting some of America’s biggest attractions, and some insight into how locals are being affected — along with the rest of the country.
Why is travel down to tourist hotspots?
The numbers don’t lie when it comes to the major lack of interest in visiting top U.S. tourist destinations:
- Travel to Las Vegas is down 12% year-over-year. (2)
- There were 3.5 million fewer visitors to Florida as of mid-2025 — 15.9 million travelers visited in 2025 compared with 19.4 million in 2024. (3)
- Travel to Hawaii was down by 300,000 people this year, with 1.5 million in 2025 vs. 2024’s 1.8 million. (3)
- 14.4 million people visited Michigan last year compared with 10.9 million visitors so far this year. (3)
- Arizona reports losing 600,000 tourists year-over-year. (3)
While this is a stark drop, it’s easy to understand why this is happening.
Visits from Canadians are down 40% as a result of political tensions with the Trump Administration. Trump has made comments about adding Canada as a state, the U.S. has been involved in trade conflicts with Canada, and the Canadian government has issued new travel advisories for the United States concerning immigration crackdowns. (4)
Many countries in Europe have also issued warnings about immigration issues to the U.S., and the costs of getting a U.S. visa have gone up.
In addition to these political tensions, the U.S. government is not funding marketing and promotion of travel at nearly the same level that it did in the past, having slashed the previous budget by 80%.(2)
There are also location-specific issues affecting tourism as well. For example, Las Vegas has developed a reputation for being overpriced with a number of excess fees padding the bill for travelers. Some may simply feel that it is unaffordable, especially given rising costs due to inflation and the economic uncertainty resulting from tariffs.
Lastly, a strong U.S. dollar may also be preventing some international visitors from visiting as the value of their currency falls relative to the dollar.
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How are businesses and the economy being affected?
Unfortunately, many places in the U.S. rely on tourism as a main form of industry, and their local economies are being impacted. With visits down in so many places across the U.S., the entire country is also seeing negative economic effects of the decline in tourism.
The World Tourism and Travel Council warned earlier this year that the country could lose $12.5 billion in spending from international travelers this year, while a mid-year report from Oxford Economics projected an $8.5 billion decline. (2)
TD Economics has sounded the alarm on the far-reaching impact of these trends, indicating that reduced travel and tourism spending is resulting in:
- Lost jobs in the hospitality, education, retail, and travel sectors. (5)
- Lower government revenues since sales tax is down. (5)
- Damage to the commercial real estate market, including bookings of short-term rentals. (5)
Sadly, this has left many business owners in tourist hotspots very worried about their future, with KTNV Las Vegas reporting that some company owners had experienced business declines and had to make cuts to stay afloat. (6)
Can tourism bounce back?
Travel and Tour World suggests that domestic travel is a "bright spot," amid the decline in international visitors, with as many as 92% of Americans anticipating taking trips this year. (7)
Domestic travel accounts for roughly two-thirds of U.S. tourism dollars, according to the TD Economics report. (5) Business and government-related travel also provides plenty of tourism dollars, while international and non-resident travelers account for only 10% of total spending. However, the report indicates that:
- The decline in travel-related spending on lodging, airline trips, and attractions is happening among all income groups.
- Price hikes caused by tariffs are prompting people to prioritize buying goods and to spend more money on goods instead of travel.
- Business and government travel is down due to cost-cutting and restrictions on federal spending.
None of this is good for the travel industry. In fact, those who can afford to travel should probably think about taking trips to their favorite domestic destinations soon to support local economies where their dollars are desperately needed.
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Article sources
We rely only on vetted sources and credible third-party reporting. For details, see our editorial ethics and guidelines.
Visit Las Vegas (1); CNBC (2); Travel and Tour World (3); NPR (4); TD Bank (5); KTNV Las Vegas (6); IPX (7)
This article originally appeared on Moneywise.com under the title: Las Vegas campaign attempts to reel in new visitors — but it’s not the only hot spot seeing a decline. What’s going on?
This article provides information only and should not be construed as advice. It is provided without warranty of any kind.