Las Vegas Joins Houston, New Orleans, Phoenix, San Francisco, Oakland, And More In The Us Tourism Slump As Travel And Hotel Demand Continue To Drop

Thursday, July 24, 2025

Las Vegas has joined Houston, New Orleans, Phoenix, San Francisco, Oakland, San Diego, and San Jose successful a nascent 2025 U.S. tourism slump, pinch edifice occupancy dropping and recreation request ebbing nationwide. From Nevada’s intermezo superior to nan municipality centers of California and heavy into nan South and Southwest, manufacture information for June and July show steep year-over-year downturns—some arsenic precocious arsenic 20 percent—in room bookings, regular rates, and wide visitant volume. Although immoderate cities, specified arsenic San Francisco, person demonstrated localized gains, astir destinations are grappling pinch nan cumulative effects of lackluster business travel, less world tourists, an system roiled by uncertainty, and shifting traveler behaviour that has undermined what was expected to beryllium a highest betterment play for nan nation’s hospitality industry.

Las Vegas Loses Its Shine arsenic Visitor Numbers Drop Sharply successful Summer 2025

Las Vegas, a longtime awesome of American leisure and entertainment, has seen edifice occupancy plunge. In June 2025, occupancy dropped 14.9% year-over-year, and early July information shows further declines to 66.7%. Analysts expect full summertime losses whitethorn scope 20% compared to nan aforesaid play successful 2024. These numbers are raising siren among hoteliers and tourism agencies alike, peculiarly arsenic nan metropolis continues to trust heavy connected volume-driven gross from midweek conventions and play getaways.

The slump has been attributed to a diminution successful Canadian and world arrivals, reduced request from business travelers, and increasing fund sensitivity among home tourists. With galore visitors now favoring little costly aliases much elastic destinations, Las Vegas is fighting to clasp onto its position arsenic a top-tier recreation hub. While properties stay unfastened and promotional campaigns are underway, nan metropolis faces a difficult way done nan remainder of nan precocious season.

California’s Tourism Divide Widens arsenic San Francisco Climbs and Others Stall

San Diego knowledgeable a notable dip successful demand. In June 2025, edifice occupancy dropped to 71.6%, representing a 13.8-point drop from nan erstwhile year. Although nan first week of July saw a impermanent boost to 81.2%, nan 2nd week reversed that momentum, sliding backmost to 76.1%—a 3.9% year-over-year decrease. This inconsistency highlights nan vulnerable quality of post-pandemic betterment successful leisure-heavy markets.

Much of nan instability successful San Diego’s hospitality assemblage tin beryllium linked to patchy business travel, little robust normal bookings, and accrued traveler be aware astir discretionary spending. While weekends still tie decent leisure traffic, weekdays stay underbooked, and wide gross per disposable room continues to way projections. Industry leaders pass that unless weekday measurement picks up, betterment will stay inconsistent heading into nan fall.

San Francisco continues to beryllium a agleam spot. The metropolis posted a 72.2% occupancy rate successful June—up 17.2% year-over-year—and continued to turn into July. For nan week of July 13–19, occupancy reached 77.2%, marking nan highest capacity summation among STR’s apical 25 U.S. edifice markets. The metropolis is besides seeing stronger mean regular rates and higher room gross compared to earlier successful nan year.

This resurgence is being driven by a comeback successful world travel, large-scale downtown events, and a dependable watercourse of firm visitors returning for conferences. The city’s entreaty arsenic a taste and tech hub continues to springiness it an edge, moreover arsenic different parts of California stay successful flux. San Francisco’s comparative stableness underscores really localized tourism betterment tin beryllium wrong a azygous state.

San Jose remains sluggish. According to disposable Airbnb data, median occupancy sits astatine astir 59%, pinch lower-tier listings performing arsenic debased arsenic 28% and higher-end accommodations reaching astir 64%. Hotel information mirrors these struggles, showing nan region is lagging down California peers successful filling rooms consistently.

With less awesome tech events, constricted firm travel, and a displacement toward distant work, nan city’s once-strong business recreation instauration has weakened. As a result, hospitality businesses are struggling to pull weekday bookings and clasp pre-pandemic pricing power. San Jose continues to hunt for ways to reignite its visitant system successful nan look of structural change.

Oakland remains mostly without updated occupancy data, but anecdotal insights propose it continues to underperform. Compared to San Francisco, nan metropolis has seen less signs of recovery, particularly successful edifice demand, visitant spending, and travel-driven business activity. Concerns astir information and a deficiency of high-profile events person slowed nan return of regular tourism.

Without a robust trading push aliases caller economical drivers to anchor nan recreation sector, Oakland risks being near down successful California’s broader tourism recovery. The city’s hospitality marketplace remains limited connected play leisure recreation and short-term location guests but lacks nan infrastructure and image basal to seizure awesome marketplace stock from returning world aliases business travelers.

Houston Hotels Hit Rock Bottom pinch Steepest Occupancy Drop successful nan US

Houston has been deed difficult by nan summertime slump. For nan week ending July 12, 2025, edifice occupancy fell by 20.0% year-over-year, dropping to conscionable 57.7%. At nan aforesaid time, nan mean regular complaint fell 17.6% to $114.55, and gross per disposable room (RevPAR) sank by a staggering 34.2% to $66.05. These numbers positioned Houston arsenic nan worst-performing metropolis among STR’s apical 25 U.S. edifice markets for that week.

Analysts nexus this crisp diminution to a operation of anemic normal business, declining firm travel, and constricted summertime events. As 1 of nan astir conference-reliant cities successful nan confederate U.S., Houston has struggled to retrieve its pre-pandemic arena calendar. The tourism bureau is now reassessing its promotion strategy, but pinch less anchor events, nan roadworthy to betterment appears steep.

New Orleans Faces Bleakest Summer Yet pinch Lowest Hotel Bookings Nationwide

New Orleans saw nan worst June 2025 edifice occupancy capacity among nan apical 25 U.S. markets. Occupancy fell to 53.8%, a important diminution that puts nan metropolis acold beneath nationalist averages. While nan Big Easy traditionally leans connected festivals and taste events to tie visitors, this summertime has seen a scaled-back almanac and thinner crowds crossed nan board.

Part of nan slump is attributed to less world flights, a driblet successful spending from home tourists, and constricted midweek tourism volume. Hotel operators study shorter stays, little per-night spending, and less group bookings. Without a awesome resurgence successful events for illustration Essence Fest aliases ample conventions, tourism businesses crossed New Orleans are bracing for an extended slowdown.

Phoenix Struggles Through Heat and Empty Rooms arsenic Tourists Stay Away

Phoenix was nan second-lowest performing metropolis for June 2025, pinch edifice occupancy dropping to 59.5%. Compared to erstwhile years, that fig reflects a crisp dip, arsenic nan metropolis typically attracts summertime travelers done affordable rates and desert-adventure tourism. However, record-breaking heatwaves and weaker normal activity person kept galore visitors distant this season.

Industry watchers opportunity nan city’s reliance connected budget-conscious travelers has go a vulnerability. As ostentation continues to pinch family budgets, vacationers are opting for closer-to-home destinations aliases deferring summertime trips altogether. Without a beardown influx of group business aliases events, Phoenix’s hospitality assemblage is expected to stay nether unit done August.

Las Vegas has now joined Houston, New Orleans, Phoenix, San Francisco, Oakland, San Diego, and San Jose successful a increasing 2025 U.S. tourism slump, arsenic recreation and edifice request proceed to autumn nationwide. Economic uncertainty, weaker business travel, less world arrivals, and shifting traveler habits are dragging down what was expected to beryllium a highest betterment season.

America’s Urban Tourism Slips Further arsenic Summer Recovery Falls Short

Together, these cities exemplify a nationwide cooling successful tourism demand, particularly crossed municipality centers. Las Vegas, Houston, New Orleans, Phoenix, and respective cities successful California are seeing sustained declines successful occupancy and edifice revenue. While places for illustration San Francisco are rebounding pinch beardown firm and world interest, they are nan exception, not nan rule.

Travel experts pass that if these downward trends proceed into autumn, nan broader hospitality manufacture whitethorn look superior gross gaps. Local tourism boards are being urged to enactment quickly—launching targeted promotions, securing events, and exploring caller markets—before nan slowdown deepens into a semipermanent downturn.