We asked Andrew Woods, Director of the Center for Business and Economic Research at the University of Nevada, Las Vegas, whether the recent tourism slowdown reflects a broader economic cooling or if it’s more cyclical.

He told CasinoBeats that the slowdown appears to be driven by two factors: “One is outside forces beyond the control of the leisure and hospitality industry, such as the fallout of the rhetoric due to the trade war, which has depressed demand from Canadian tourists to the United States. In Las Vegas, roughly 12% of tourism is international, with the largest share from Canada, which was down 19.1% year-to-date in July, according to statistics from Harry Reid International Airport.”

Woods added that domestic spending habits are also changing: “The second factor driving the lower visitations to Las Vegas is the domestic traveler, especially the more budget-conscious type. We know they are still traveling, but they are more thrifty with their choice of where to travel and how they are spending their discretionary income. Las Vegas, maybe because of our own pricing strategies or how we’ve communicated our pricing strategies to consumers, is perceived to be less affordable compared to other popular tourist destinations like Orlando or Honolulu.”

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