Vegas workers say they have been hit by tourism slump fueled by Trump-era tariffs and high costs

Behind Las Vegas' extravagant hotels, packed arenas and world-class shows, some hospitality workers keeping the city afloat say they're barely holding on -- squeezed by a tourism slowdown they blame on the Trump administration's tariffs, high gas prices due to the war in Iran and the cost of living.

Las Vegas saw about 3.1 million fewer visitors last year, a 7.5% falloff, the steepest decrease outside of the pandemic period since the Las Vegas Convention and Visitors Authority (LVCVA) began tracking the data in 1970, with unemployment in the state remaining among the highest nationwide at 5.1% as of June, according to the Bureau of Labor Statistics.

"We have gone as a country from a $51 billion tourism trade surplus in 2019, to now a $70 billion trade deficit in this country on travel and tourism under this administration," Nevada Democratic Sen. Catherine Cortez-Masto told ABC News.

The city has long relied on tourists from neighboring states and countries with disposable income to spend freely. With the decline in tourism, some local workers say they're scrambling to make ends meet as their tips shrink alongside it.

President Donald Trump is in Las Vegas on Wednesday to highlight tax cuts for working families, but his visit to the city comes as hospitality workers say they are struggling to make ends meet. On the issue of the economy, Trump has repeatedly cited a recent report showing inflation cooling to 3.5% in June, down from 4.2% the month before, but recent polls show Americans are rating the economy negatively. 

The White House told ABC News earlier this week that oil prices and overall inflation will "plummet" when the president "forces a successful resolution with Iran."

"The Trump economic agenda has a proven track record of raising real wages, creating jobs, and securing key investments, and the Administration remains focused on implementing this agenda for America’s long-term prosperity," White House spokesman Kush Desai said in a statement.

Some of Vegas' working class feels 'forgotten'

Joe Spica, 44, a bellman at a resort on the Las Vegas Strip and father of three, said the working class feels "forgotten." Lower hotel occupancy means fewer opportunities for him and his fellow bellmen, cocktail servers and valets to make tips, their primary income, pinching their wallets even further.

"I used to be able to take care of multiple dinners for me and my family with my tips from one day," Spica said. "Now I'm lucky to get a dinner for my tip for one day, and it's hard."

Aaron Mahan, 52, who has lived in the Las Vegas area since 1988 and now works a to-go window at an off-Strip property, said the restaurant itself is a symbol of the slowdown. It was downgraded from a 24-hour coffee shop to breakfast and buffet service only because business couldn't support it.

"Everything's costing more," said Mahan, a registered Republican who says he voted for Trump twice but not in 2024. "It's affecting the way I shop, the way I go out, affecting my entire life. I'm budgeting a lot more than I ever did before."

Both Mahan and Spica are in Culinary Workers Union Local 226, which represents 60,000 workers in Las Vegas and Reno, Nevada.

Trump's 'no tax on tips' policy

In April, Trump visited Vegas to tout his "no tax on tips" policy, which allows workers to deduct up to $25,000 in tips from federal income taxes. 

Ted Pappageorge, of Culinary Workers Union Local 226, said the policy is not effective, especially for married couples who both rely on tips as spouses must share the $25,000 cap. 

"If your tips are down, then this completely wipes anything that the 'no taxes on tips' may have gotten folks," Pappageorge said.

"It doesn't really affect you until you get your taxes back," Mahan said. "So, for a month-to-month relief, there isn't much."

Workers interviewed said they appreciate the policy in theory, but it hasn't done much for their wallets, largely because tip volume has declined amid the tourism slump. Compounding the problem, the policy's financial benefit comes as a tax deduction, so workers won't see any relief until they file next year.

Decline in tourism from Canada 

Las Vegas Mayor Shelley Berkley said that she is "pleased" about where the city stands economically, in spite of policies at the federal level, pointing to the city's growing convention business and high-profile sporting events -- the Formula One Grand Prix, the Super Bowl and the NCAA's Final Four -- that draw tourists.

After Trump repeatedly floated the idea of Canada becoming the "51st state" and imposed tariffs on the country, Canadian visitors to Las Vegas declined 17.4% in 2025, marking the steepest drop among North American markets, per the LVCVA.

"We are very soft on Canadian business, and I wish that wasn't the case," said Berkley, who mentioned that certain Vegas casinos and hotels are even offering promotional deals to attract Canadian tourists back. "I did not realize until we offended the Canadians -- how much of our foreign business came from Canada."

In August of last year, Gov. Joe Lombardo said, "Right now, we're obviously in the doldrums, right? If tourism is down, revenue is down."

The White House pushed back, with Desai saying in a statement that "the vast majority of Las Vegas tourists are Americans, and President Trump has always been focused on creating jobs, raising wages, and accelerating economic growth for everyday Americans."

A high-stakes gubernatorial race

The economic concerns are coming to a head in Nevada's gubernatorial race -- a key battleground that Democrats are eyeing to flip in November.

Democratic nominee Aaron Ford, the state's attorney general, is facing off against incumbent Gov. Lombardo, who has been backed by Trump. Ford said in an interview that if elected, he would reinvest in small business loan programs, limit corporate investors from buying single-family homes and cap the cost of prescription drugs to address affordability concerns. 

"Working families are suffering under this Lombardo-Trump economy … [Lombardo is] trying to sell Nevadans on this lie that the economy is doing great, asking them not to believe their own experiences because the evidence is actually in their wallets," Ford said in an interview with ABC News.

A campaign spokesperson for Lombardo acknowledged that Nevada’s unemployment rate "remains a little bit higher because of our tourism-driven economy" but said, "the long-term trend is moving in the right direction" as Nevada’s workforce grew 1.9% from April 2025 to 2026, the highest of any state, per data from the Bureau of Labor Statistics.

"No governor can control every national or global economic headwind, but what Governor Lombardo can control is whether Nevada pushes higher taxes and more regulations or advances policies that encourage investment and job creation,” the spokesperson said in a statement.

Peter Guzman, president of Nevada’s Latin Chamber of Commerce, told ABC News that he thinks the state's job growth has been a good sign for the economy under Lombardo’s leadership. 

"Nevada is very entrepreneurial. Outside of the gaming hospitality, it's all about small business, and Nevada has always had a really good environment for businesses to open here …  I think [Lombardo’s] the right guy to do that," Guzman said.

Mahan, the restaurant employee, said he doesn’t believe the president has fulfilled his campaign promises to lower costs, and is leaning toward voting for Ford.

“I don't see [Lombardo] as a leader, I see him as a follower. He's following Trump,” Mahan said.