Tourism downturn in Las Vegas sparks fears of ‘Trump Slump’ over tariffs and foreign policy
With tourism down, gaming win on the Las Vegas Strip dropped in March for the second consecutive month with some analysts already claiming this is the first sign of the ‘Trump-slump’ caused not only by the recently introduced tariffs but also the ‘rhetoric’ surrounding new foreign policy strategies.
Casinos on the Strip reported revenue of $681.7m for the month, down by 4.8 per cent from March last year, with visitors to the gambling capital of the world down by almost eight per cent, according to the Las Vegas Convention and Visitors Authority (LVCVA).
Las Vegas welcomed 3.39m visitors in March, compared with 3.68m in February, a drop of 7.8 per cent with hotel occupancy down 2.4 per cent midweek.
Figures from the Clark County Department of Aviation, show passenger volumes at Harry Reid International Airport fell by 3.9 per cent in March.
Travel and Tour World said: “The imposition of sweeping tariffs and the administration’s confrontational rhetoric toward certain foreign allies have alienated potential travelers and raised tensions internationally. The fallout from these policies is beginning to manifest in reduced inbound tourism, which poses risks not only for cities like Las Vegas but for the broader US economy.
“Hospitality groups, travel associations, and international tourism boards have expressed concerns over the long-term damage being done to America’s reputation as a welcoming destination. Restoring traveler confidence, especially among international tourists, may take years of diplomatic efforts and strategic rebranding.”
Statistics from the US International Trade Administration pitch the fall in visitors from Western Europe in March at 17 per cent with tourism from Germany and Ireland both down by 25 per cent.
In a recent article, TheIndependent used the media-coined phrase of the ‘Trump Slump’, fuelled by fears of deportation and other entry-related concerns. In media-grabbing headlines, German backpackers Charlotte Pohl, 19, and Maria Lepere, 18, were arrested, handcuffed, strip-searched and deported having turned up in Honolulu without a hotel booking. Welsh tourist Rebecca Burke was handcuffed before being taken to the Tacoma Northwest detention facility over a Visa issue at the Canadian border. Jessica Brösche, a 29-year-old tattoo artist from Berlin, was arrested at the Mexican border and detained for more than six weeks, including eight days in solitary confinement.
Research firm Tourism Economics believes that visits to the US will fall by 5.1 per cent in 2025, which will wipe off spend of $64bn for the domestic tourism industry.
Speaking to the Washington Post, Adam Sacks, President of Tourism Economics, said: “There’s been a dramatic shift in our outlook. You’re looking at a much weaker economic engine than what otherwise would’ve been, not just because of tariffs, but the rhetoric and condescending tone around it.’
LVCVA President Steve Hill backed this up, saying to the Las Vegas Sun: “One month does not make a trend, although we do expect that this is the start of a decline in international visitation. At some level, the conversation around the tariffs has also alienated some of our potential visitors.”
Analysts at SeekingAlpha added: “The risk is that this dip is sustained throughout the full term of the 47th presidential administration, compounding pain for Las Vegas and leading to a lost four years.”
Jeremy Aguero, Principal Analyst at research firm Applied Analysis, said: “There are a combination of policies that are creating an unsettling condition throughout the entirety of the globe, including seeing the lowest consumer confidence we’ve seen in more than a decade, lower today than it was during the pandemic.”
All this has convinced JP Morgan to increase its odds that the US economy will go into a recession this year to 60 per cent.
It said: “People are scared right now, and when they’re scared, they don’t go out and make major purchases. They travel a little less, and like all of us, they spend a little less.”
Travel and Tour World added: “As Las Vegas grapples with the mounting impact of falling visitor numbers, industry stakeholders are recalibrating their expectations and strategies for the remainder of the year. Some businesses are investing more in digital marketing campaigns to lure back international tourists, while others are exploring promotions and discount packages to stimulate domestic travel demand.
“However, unless broader macroeconomic and political challenges are addressed, Las Vegas may continue to feel the aftershocks of the shifting global travel landscape. For a city so deeply intertwined with the fortunes of tourism, the current slowdown serves as a stark reminder that even entertainment capitals are not immune to external forces reshaping global movement and spending behaviour.”
Image by Thomas Wolf, www.foto-tw.de, CC BY-SA 3.0, https://commons.wikimedia.org/w/index.php?curid=43851150
