Hospitality workers in Las Vegas are seeing up to 50% of their income coming from tips, even though recent legislation hasn’t alleviated taxes on those earnings. This shift comes alongside a downturn in tourism, which some attribute to impacts from trade policies during the Trump administration.
The Las Vegas Convention and Visitor Authority (LVCVA) reported a more than 6% decline in visitor numbers, with over 3.3 million arriving in April 2025. Similarly, traffic at Harry Reid International Airport also dropped, with 4.7 million passengers in April—a 3.4% decrease compared to the same month the previous year.
There was, however, a slight uptick in international arrivals, which were up 13% in June this year compared to last. Meanwhile, domestic travel saw a 6.5% year-on-year decline based on COSTAR data. This overall drop in tourism has affected service workers who had hoped to benefit from promises made concerning tax exemptions on tips.
This recent legislation included a provision in the Big Beautiful Bill, signed earlier this month, which exempts the first $25,000 of personal income from tax.
Charlie Mango, a 36-year-old tattoo artist in downtown Las Vegas, voiced his concerns. “There’s no tax on the tip, sure, but if there are no tips, that’s a problem.” Recently, he mentioned making roughly $1,500 a month, noting a significant drop in Canadian tourists, who usually make up about 30% of his clientele. “We’re all starting to be surprised,” he shared.
Others in different sectors are experiencing similar struggles. Jacob Soto, a 22-year-old supervisor at Pinkbox Donuts, reported a decrease in his weekly credit card tips, falling from between $175–200 down to $100–150. He finds his $15 an hour wage is simply not enough to meet basic living expenses.
There’s a noticeable shift in vibe on the Las Vegas Strip as well, with hotel occupancy rates falling to about 66.7% early in July, compared to the same time last year.
“Vegas is no longer fun,” said retail entrepreneur Amrita Bashin, citing resort fees as high as $50 imposed by hotels. This price increase not only affects tourists but also those working in the industry. Wally Weidner, a 67-year-old visitor from Wisconsin, mentioned, “Just because prices go up doesn’t mean I should tip more.”
At Mon Ami Gabi, a restaurant on the Strip, the price of a cheeseburger has climbed to $30.95, not including tax and tip, a big jump from $16.95 previously.
Rory Kuykendall, a 41-year-old California native and bell person at the Flamingo, stated that tips can represent anywhere from 25% to 70% of revenue, depending on the week. He described the situation as “overwhelming,” especially given the rising costs of groceries and car insurance. To navigate these challenging times, he has cut back on his personal spending, saying, “It really made me feel bad.”
