Las Vegas has been walking a tightrope this year. After years of boom-era expansion and record-setting tourism numbers, the Strip is showing signs of strain. 

The federal government shutdown could exacerbate the city’s turbulence, as it depends more heavily on tourism than some comparably sized cities.

Overall, the shutdown could cost the travel industry $1 billion a week nationwide, according to the U.S. Travel Association.

Las Vegas tourism on uncertain ground during government shutdown

The specter of a shutdown has injected fresh uncertainty into an already-fragile tourism climate, according to a Las Vegas Sun report.

Visitor numbers and airport traffic are down sharply so far in 2025:

• Around 8% fewer tourists visited when compared to 2024. 
• Nearly two million fewer travelers have passed through Harry Reid International Airport, according to airport officials, a drop of 4.5%.

Related: Are national parks open during a government shutdown? What we know

Though full details of local impact remain speculative, the concern is that federal disruption could ripple into services that support travel and entertainment — complicating what is already a high-stakes recovery.

When Washington grinds to a halt, federal agencies like the National Park Service, TSA, and others may reduce operations, which could affect visitor experiences across the country. Vegas is close to Zion National Park, Death Valley, Joshua Tree, and the Grand Canyon, so if the parks end up closing, the reduction in visitors could trickle down to Las Vegas. 

How the shutdown could fuel the Las Vegas downturn

Here’s how the shutdown risk and Las Vegas’ ongoing tourism crisis could feed into each other:

• Reduced air travel confidence: If TSA or airport operations slow, delays and uncertainty may deter last-minute or spontaneous travelers. Vegas, which depends heavily on flexible visitation, could see more cancellations.
• Disruption of ancillary services: Many smaller businesses rely on government contracts, infrastructure spending, and permitting from federal agencies. Delays in these areas could affect everything from outdoor events to shuttle services.
• Worsening the value equation: As Vegas becomes more expensive for the average traveler, the added friction of a government shutdown makes the risk of visiting seem even greater.

“It’s already bad enough that you have critical workers who aren’t going to be paid and are basically doing their work for free, but the travelers are going to be delayed,” UNLV Professor Dan Bubb, an aviation expert, told the Las Vegas Sun.

What’s at stake for Las Vegas tourism

If the Strip continues to push pricing upward and federal instability adds risk, Las Vegas could see less volume and a less diverse group of visitors. 

High rollers and international tourists will likely always have resources to visit, but more middle-class travelers and families could stay home.  

Las Vegas by the numbers in 2025 so far:

According to the LVCVA August 2025 report:

• Estimated total visitors so far in 2025: Approx. 25.8 million (down 7.8% from 2024)
• Hotel room occupancy so far in 2025: Approx. 77.5% (down 3.7% from 2024)
• Estimated revenue per room so far in 2025: $125.84 (down 11.7% from 2024)

Even if this government shutdown lasts only a few days and the disruptions are minimal, tourism in Las Vegas is not trending in a positive direction in 2025. 

Related: Find out if DMV is open during the government shutdown