Las Vegas was once America’s escape hatch: an oasis of freedom, fun, and economic energy. Unfortunately, since the COVID-19 pandemic, the old Vegas has never truly returned. Residents feel it, and the data confirm it: tourism is still struggling. And when tourism struggles, so does the entire Sin City economy.
It’s easy to blame the pandemic itself. But any effect of the virus was compounded by decisions made by those in leadership. Former Democratic Governor Steve Sisolak’s lockdown-heavy policies cost Las Vegas $34 billion. Biden’s economic mismanagement caused inflation to rise to 9.1%, an evaporation of wealth Americans hadn’t seen in 40 years.
Everything, from airfare to eating out, is more expensive. Many working families no longer have the discretionary income they once did to gamble or splurge on a Vegas weekend.
A recent report from the Nevada Resort Association shows the tourism industry had a record-breaking $100 billion economic impact in 2024. But if you dig deeper, that number doesn’t tell the whole story. Much of that growth has been driven by inflation, not by a return in visitor volume. In fact, Nevada welcomed fewer tourists in 2024 (41.7 million) than it did in 2019 (42.5 million). In a city that thrives on volume, every visitor counts. More tourists means more spending, more jobs, and better odds of keeping up with inflation.
Conferences, concerts, conventions, and, most importantly, tourists, once flooded the city 24/7. But when the state government chose to enforce some of the most aggressive COVID-19 shutdowns in the country, it cut off that ecosystem. The Strip went dark. Jobs vanished overnight. While other states bounced back by trusting people to assess their own risks, Nevada stayed closed longer.
We’ve also seen international tourists, especially those from China, decline since the pandemic. Chinese travelers in particular have been extremely sluggish to return to Sin City due to pandemic regulations and strained US-China relations. Pre-pandemic, Chinese visitors were one of the fastest-growing and most lucrative groups of tourists to Las Vegas, thanks to tailored marketing and resorts appealing to Chinese visitors. It’s time to rebrand Las Vegas to appeal to international travelers once again.
People don’t just “come back” because politicians say the pandemic is over. Trust and momentum take time to rebuild, especially when those in charge seemed more interested in pleasing public health bureaucrats than protecting jobs.
I’ve spoken with casino executives who say the inflationary pinch is not hitting every sector equally, but, overall, it is still hitting hard. For example, lucky for gamblers, and unlucky for casino executives, sports gambling is now legal in almost 40 states. What had been one of Vegas’s competitive edges is now available with a few taps on a smartphone. Why spend money on a flight and hotel when you can place a bet from your couch?
Further, many of the iconic resorts on the Las Vegas Strip no longer own their properties, but must lease from Wall Street-backed real estate investment trusts (REITs). In short, Wall Street firms bought the land in Vegas and now lease it back to the resort operators. Casino executives are facing high rent but can’t adjust their pricing easily. If they want to lower hotel room rates to attract more visitors, they can’t, not when they have a landlord expecting full rent regardless of market conditions.
On top of that, labor costs are out of control, driven largely by the demands of powerful unions, like the Culinary Workers Union, where the leadership seems to prioritize disruption over partnership. The results of their strikes have been predictable: higher prices for customers, less hiring, and thinner margins for operators, all of which hurt tourism long-term (and the pocketbooks of any tip-workers the union bosses claim to be helping).
So, what can be done?
First, Governor Sisolak and others who insisted on maintaining disastrous restrictions for almost two full years should never be near power again. Decision-makers in Nevada and beyond have left Las Vegas to pay the costs of shutdowns, eroded trust, inflation, overregulation, union overreach, and a real estate model that puts Wall Street ahead of visitors.
Slowly but surely, current Nevada Republican Governor Joe Lombardo and President Donald Trump are working individually to pick up the pieces of what was broken by Democratic leadership. Governor Lombardo has lived up to at least 60% of his promises to Nevadans and is still working on many legislative improvements that aim to help the economy. President Trump is working on bringing inflation down nationwide and holding the lowest core inflation numbers since 2021.
It’s not all on the politicians: private sector leaders must play their part, too. Some big players will need to take their own cuts. Bankruptcies and sales of properties should be on the table to help revitalize the Strip. Economic realities must be used to pressure union leaders to act in the long-term interest of the workers they claim to represent: workers who depend on tourism.
It’s time to reckon with the fact that sports gambling can now be done almost anywhere. New attractions and focusing on younger generations and families will bring in more tourists from across the country. Vegas needs to bring uniqueness back to the Strip to remind everyone just how bright the lights remain.
To truly restore Las Vegas, we must double down on a market-friendly approach with policies that support free enterprise, resist federal overreach, invest in innovation, and reassert Las Vegas as a global destination. With bold leadership and a clear-eyed view of the challenges, the lights of the Strip can shine brighter than ever.
Sam Mirejovsky is an attorney, co-founder of Sam and Ash Law and Nevada radio host of the What’s Right Show.
Read the full article here