Jul 14, 2025
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"It is just a lot less tourists in town and a lot less business," Christopher Palmeri told News 3 Las Vegas in a story published June 27.
On a recent Monday, Palmeri stated that he filled only seven orders — a significant decline from the typical 60 to 80 pizzas his shop would normally sell.
Naked City Pizza isn't the only local business suffering.
Drop in tourism
Visitor numbers fell 6.5% in May compared to last year, according to the Las Vegas Convention and Visitors Authority. Hotel occupancy also declined 3.1% year over year.
"We've made great efforts relative to economic diversification, but we're still more dependent on travel and tourism than any other major market in the U.S.," Jeremy Aguero, principal analyst at Applied Analysis, told News 3 Las Vegas.
The problem extends beyond Las Vegas. According to the World Travel & Tourism Council (WTTC), international visitor spending in the U.S. is projected to fall to just under $169 billion in 2025, down from $181 billion in 2024. That’s a loss of $12.5 billion in a single year.
"The world's biggest travel and tourism economy is heading in the wrong direction, not because of a lack of demand, but because of a failure to act," WTTC President & CEO Julia Simpson said in a news release. "While other nations are rolling out the welcome mat, the U.S. government is putting up the 'closed' sign."
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In fact, the U.S. is the only country among the 184 economies analyzed by the WTTC forecasted to experience a drop in international spending this year.
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Weathering the storm
For small businesses like Naked City Pizza, fewer tourists can mean a direct hit on revenue. That's especially true for establishments in tourism-dependent cities like Las Vegas. But there are steps business owners can take to soften the blow.
Strengthen local customer engagement: Run promotions aimed at locals like loyalty cards or neighborhood discounts. Consider partnering with schools or charity groups for fundraisers.
Partner with adjacent businesses or events: Ask if your to-go menu can be left at the front desk. Offer packages, special menus or cross-promotions that entice visitors to stop by.
Get good at marketing: Maximize your online presence by joining local review sites and social media. Visitors may check your business on Google, Yelp and Instagram. Consider whether paid ads make sense for your business.
Look for ways to diversify your revenue streams: Consider delivery, catering or selling branded merch. If your goods ship well, consider offering options for customers outside of your city.
Finding ways to adapt now could be key to surviving long-term.
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Danielle is a personal finance writer based in Ohio. Her work has appeared in numerous publications including Motley Fool and Business Insider. She believes financial literacy key to helping people build a life they love.
