It’s not just David Copperfield—everyone seems to be vanishing from Vegas. Last year, annual trips to Las Vegas dropped 7.5%, according to data from the Las Vegas Convention and Visitors Authority (LVCVA). Outside the Covid-19 pandemic, that marks the biggest decline since the group started tracking visits to Sin City in the 1970s.
Everyone has thoughts on why Vegas is sputtering out
Some observers chalk it up to a decline in international tourism due to geopolitical tensions. (Mayor Shelley Berkley even publicly begged Canadians to come back to the Strip last September.) Cloudflare CEO Matthew Prince, meanwhile, pitched a theory that GLP-1s have curbed not only appetites, but also urges to gamble and drink, which are…kinda Vegas’s whole shtick. And it doesn’t help that Gen Z and millennials are drinking less than generations before them.
But the strongest argument for fewer visits is likely declining value. Most casinos have tweaked their odds against gamblers in roulette and raised minimum bets at blackjack tables in the last few years. Like other recent changes in the travel industry, these moves were meant to attract higher-income customers, which seems to be working:
- Despite declining visits, Vegas casinos posted record revenue last year, at roughly $8.8 billion.
- An LVCA survey found that 44% of visitors had a household income of $150,000 or more.
Big picture: Combined with a flood of resort fees, inflated food and drink prices, and even hotels abandoning free parking, budget-conscious travelers are getting priced out of Sin City. Maybe try Atlantic City?—MM
