Las Vegas is experiencing a notable decline in tourism during the summer of 2025, with visitor volume dropping by approximately 11% compared to the previous year. This downturn is impacting local businesses and the broader economy, including the residential and commercial real estate markets. A key factor contributing to the slump is a sharp decrease in Canadian visitors, who represent the largest source of foreign tourists for the city. Flight data from Harry Reid International Airport indicates a more than 70% reduction in advance bookings for Canada-U.S. flights between April and September. Additionally, Canadian travel to the U.S. has been falling for seven consecutive months, with car trips down 37% and air travel down 26% as of July 2025. These declines are linked to the ongoing trade tensions and tariffs imposed under former President Donald Trump’s administration, as well as stricter immigration policies and rising costs for travelers. The cumulative effect is estimated to contribute to a potential $12.5 billion collapse in U.S. tourism revenue. In response, Las Vegas casino resorts and businesses are introducing discounts and specials to attract visitors, while tourism experts advocate for a moratorium on resort fees to improve the perceived value of vacations. Despite the tourism slump, Las Vegas airports are undergoing expansion projects to accommodate anticipated future airspace capacity needs, according to federal projections.