Las Vegas sees ‘some level of decreased visitation' amid Trump tariffs

Yahoo

24-04-2025

LAS VEGAS (KLAS) — President Donald Trump's tariffs are impacting small businesses throughout the Las Vegas valley, though their effects on tourism have yet to fully materialize.
Earlier this month, the president announced tariffs – taxes on imports, which essentially end up as taxes on the American consumer – as part of a 'Liberation Day.' The president later pulled back after financial markets crashed, calling for 10% tariffs and a 90-day pause for negotiations.
The 10% rate affected all other countries except China, where the president instituted a 145% tariff.
'It means several things,' said Monica Taher of Avanti Green Eco Cleaning. 'No. 1, an increase in price when it comes to our supplies and equipment. No. 2, it might mean less consumer spending.'
Taher employs about 50 people and buys supplies and equipment directly from companies in China.
'They alerted us and told us that we were going to get a 10% increase on everything started the second week of April,' Taher said, adding that increase instigated unexpected costs. 'And it also means that, unfortunately, because we are spending more on supplies and equipment, that we need to raise our prices.'
The growing trade war has led to a drop in consumer sentiment, an economic factor tracking how confident American consumers feel about spending money, according to the University of Michigan.
Facing a possible economic slowdown, the Las Vegas Convention and Visitors Authority (LVCVA) projected a 5% drop in revenue for the year. The number does not equate to a 5% drop in tourists, but the amount of money collected through hotel room taxes.
'What we're seeing is early,' LVCVA CEO Steve Hill said. 'We're seeing some level of decreased visitation from Canada and internationally, generally.'
That decrease, however, may involve intentional visitors dissatisfied with Trump. In February, then-Canadian Prime Minister Justin Trudeau told his citizens to cancel their U.S. trips amid the trade war.
In 2023, 1.4 million Canadians visited Las Vegas, according to the LVCVA. That accounts for about 30% of all international tourism to the valley. The projected decline in Canadian tourism to the U.S. could mean more than $4 billion in losses to the economy, the U.S. Travel Association (USTA) estimated that same month. A 10% reduction in travel could put 140,000 hospitality and retail jobs in jeopardy, according to USTA metrics.
One in eight visitors to Las Vegas last year was an international tourist, according to the LVCVA.
Economists warn that one of the first things people cut in uncertain economic times is discretionary spending.
In 2023 and 2024, amid the first running of the Las Vegas Grand Prix and Super Bowl LVIII, Las Vegas set several records in terms of gaming revenue and airport-passenger volume.
'We're starting to see things like airline bookings and future hotel bookings starting to drop somewhat internationally and domestically,' Hill said, adding it was not clear yet if the tariffs, economic concern or both were responsible.
'Just the fact that we have 50 employees, that means that we have 50 families who are depending on us providing a stable job, a stable salary, and I think what's happening right now with this situation is pretty problematic,' Taher said.
Trump said Wednesday that he intended to lower the tariffs on China amid possible trade negotiations. A Reuters/Ipsos poll released Wednesday found 53% of respondents disapproved of the president's handling of the economy.
Data from Harry Reid International Airport showed a 3.9% decrease in passengers arriving and departing from Las Vegas from March 2024 to March 2025. WestJet, which serves Canada, showed a 14.5% decrease.
The 8 News Now Investigators asked Las Vegas' top five hospitality and gaming companies for a comment on the tariffs. Several representatives declined to comment.
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