Las Vegas’ famed neon glow is dimming under the weight of escalating trade disputes, with economists warning of a significant decline in international visitors—particularly from Canada, the city’s largest foreign tourism market. As tensions between the U.S. and its North American neighbors intensify, the ripple effects are being felt across Nevada’s entertainment economy, threatening to derail its fragile post-pandemic recovery.
Canadian Visitors—A Critical Market at Risk
Before the pandemic, international tourists accounted for 20% of Las Vegas’ tourism revenue, with Canadians leading the pack, followed by Mexican and British travelers. However, recent data from Tourism Economics reveals a troubling trend:
13% drop in Canadian air travelers to the U.S. in February 2025 (year-over-year)
Projected 15% annual decline if trade disputes persist
Economic analyst Mike PeQueen warns that airport traffic numbers serve as an early indicator of deeper trouble. “This isn’t just a Las Vegas problem—it’s an American tourism problem,” he notes, drawing parallels to Orlando’s similar struggles.
Broader Implications for U.S. Tourism
The decline reflects growing frustration with U.S. policies rather than dissatisfaction with Las Vegas itself. “Canadian and Mexican tourists aren’t avoiding Vegas specifically—they’re reacting to broader political and economic tensions,”
Mike PeQueen
What’s Next for Sin City?
Casinos and resorts may pivot to domestic marketing strategies
Diplomatic resolutions could mitigate losses before peak travel seasons
Long-term risks if trade disputes deter high-spending international visitors
As the city that never sleeps watches its foreign arrivals dwindle, the stakes have never been higher for Las Vegas’ tourism-dependent economy.
