Las Vegas is facing a severe tourism crisis as staggering price increases drive visitors away from the famous Sin City, with airport passenger numbers revealing a dramatic downward trend.
Airport Traffic in Steep Decline
Harry Reid International Airport recorded just 4.9 million passengers in October, representing an 8.9 percent decrease compared to October 2024. This isn't an isolated incident either, with overall passenger traffic down 5.1 percent for 2025 to date, totalling 46.3 million travellers using the facility.
The situation is particularly dire for budget carrier Spirit Airlines, which saw a catastrophic 61.2 percent collapse in Las Vegas-bound passengers during October, carrying merely 300,000 travellers. The airline's two bankruptcy protection filings this year have significantly disrupted its flight schedules.
International Visitors and Canadian Market Collapse
International tourism has been hit especially hard, with overall international visitor numbers at Harry Reid dropping by 14.2 percent in October compared to the same period last year.
The crucial Canadian market fared even worse, with passenger numbers on Canada's two major airlines plummeting dramatically. WestJet saw a 33.2 percent decrease while Air Canada experienced a 26.3 percent fall. Industry analysts attribute this sharp decline to soaring prices, President Trump's tariffs, and his controversial remarks about making Canada America's 51st state.
Hotel Giants Admit Pricing Failure
MGM Resorts President and CEO Bill Hornbuckle publicly acknowledged the problem during a recent earnings call, stating 'shame on us' regarding his company's extortionate pricing strategy that has alienated tourists.
Hornbuckle highlighted several notorious examples, including the $26 bottle of water at the four-star ARIA hotel and a $12 Starbucks coffee at the three-star Excalibur. He admitted the company had failed to consider customer experience, noting 'You can't have a $29 room and a $12 coffee'.
The Daily Mail also exposed that MGM's Bellagio Hotel was charging guests an additional $25 merely to eat room service from proper plates. The company's parking fees, restaurant pricing, and substantial resort fees added to room rates have all faced significant public backlash.
Hornbuckle confirmed that MGM has now implemented price corrections following a summer of public scandal, asserting the company now understands value and Las Vegas market expectations.
Despite these adjustments, tourism officials remain concerned that passenger numbers at Harry Reid International Airport are unlikely to recover quickly, with the city continuing to struggle against its reputation for excessive pricing throughout 2025.
