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What is the effect on the Las Vegas economy as tourism keeps declining? Here's what we found out

Abel Garcia looks into hiring freezes and reduced hours for part-time workers as tourism numbers continue to fall. This comes ahead of a $250 visa fee that will impact international travel
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LAS VEGAS (KTNV) — Southern Nevada is facing a significant drop in tourism, a trend we have been tracking for months. If you're a local, chances are you or someone you know works in the hospitality industry, but with declining tourism numbers, big concerns are rising for valley workers.

WATCH | The Entertainment Capital of the World is facing a reality check. Abel Garcia shows you the numbers.

What is the effect on the Las Vegas economy as tourism keep declining? Here's what we found out

According to data from Smith Travel Research, hotel occupancy in Las Vegas fell 14.9% in June. The situation worsened in July, with the city posting the sharpest decline in the nation for the week ending July 5, when occupancy fell to 66.7% — down from last year.

A major factor in the decline is fewer international visitors, which dropped more than 13% in June alone.

RELATED | Las Vegas tourism numbers drop as domestic travelers cut back on spending

"I know that tourism plays a big part on the casinos, business and stuff like that," said Lexi Bebil, a blackjack dealer-in-training who is concerned about the industry's future.

For those trying to enter the hospitality workforce, the tourism decline is impossible to ignore.

"You know, it's a little concerning... but I feel like Vegas is strong. I know tourism plays a big part in business here, so I just hope there are still opportunities when I get in," Bebil told me.

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Bebil has heard about widespread staffing reductions. "I've definitely heard of thousands of layoffs….dealers and casino workers, period. Just hoping they can get those people replaced," she said.

To confirm these reductions, I went to Secretary-Treasurer Ted Pappageorge of the Culinary Union, which represents tens of thousands of workers on the Strip.

"Our members are quite concerned right now. What we're seeing is a softness in business," Pappageorge said.

The impact is already being felt among workers, particularly part-time employees.

"Our members are telling us is that the companies are holding off on hiring and there's incidental reductions. Some of them are significant," Pappageorge said.

When asked about the impact on local residents, Pappageorge explained, "25% of our folks are part-time, they work in the big hotels. They work on the extra board, and if visitation is soft, those are the first folks that have their hours reduced."

If the trend continues, the situation could worsen. "What can happen if this continues, is that companies will look to make reductions and increase workload for those that are remaining on the job," Pappageorge said.

In a city that depends heavily on tourism, these numbers represent more than just statistics — they affect real people's livelihoods.

Despite the challenges, some remain optimistic. "Yeah, they're gonna take a beating…. but I believe Vegas will bounce back. People here are strong," Bebil said.

I also checked in with some gaming and bartending schools, and despite the drop in tourism, they told me enrollment is actually up.


Do you have a question about this story? Reach out to Abel Garcia directly by following the link here.


New fees for international travelers

As for tourists, we found another reason some international travelers could be turned off by vacations to the U.S. in the Trump administration's recent domestic policy bill.

WATCH | Are you an international traveler to the United States? You may have to pay a new fee.

Why some foreign travelers may be turned off by U.S. vacations

International visitors will soon need to pay a "visa integrity fee" of $250. The fee will apply to all visitors who are required to obtain nonimmigrant visas to enter the U.S.

However, it won't apply to everyone and it's also refundable. Tourists from countries that are part of the Visa Waiver Program, such as France or Australia, are not required to obtain visas for stays of 90 days of less.

We spoke to financial expert Andrew Leavitt who said it's not all bad news. "If someone's traveling at that point, there's bigger expenditures than the $250. And at the same time, as long as they abide by that travel time frame of when they say they're going to exit, they get the fee back," Leavitt said.

Details related to the visa integrity fee will be posted on the State Department's visa information page.


Do you have a question about this story? Reach out to Tricia Kean directly by following the link here.


This story was reported on-air by a journalist and has been converted to this platform with the assistance of AI. Our editorial team verifies all reporting on all platforms for fairness and accuracy.