Tourism in Las Vegas has taken a significant hit due to President Trump’s global trade war, resulting in lower tips for service workers. Despite the recent passage of a law exempting up to $25,000 in annual tips from personal income taxes, many workers are still struggling. The decline in tourism has led to empty hotels and reduced business, causing workers like Charlie Mungo, a tattoo artist, and Jacob Soto, a supervisor at Pinkbox Doughnuts, to see their tip income plummet by 50% or more.
According to the Las Vegas Convention and Visitors Authority (LVCVA), visitations to the city are down over 6% through the first half of the year, with April 2025 recording just over 3.3 million visitors. Airport traffic has also decreased, with a 3.4% drop in April passenger traffic.
The impact on workers is significant, as many rely heavily on tips to make ends meet. Jacob Soto’s weekly credit-card tips dropped from $175 to $200 to just $100 to $150, leaving him struggling to cover basic expenses. Charlie Mungo, a tattoo artist, also saw his income fall by 50%, forcing him to reduce personal spending.
The decline in tourism has also led to rising prices for hotels and restaurants, with resort fees and menu items increasing by significant amounts. This affects both workers and tourists, who are now reconsidering their tipping practices due to higher costs.
As the situation continues to unfold, many are left wondering if the passage of the “no tax on tips” law will have a lasting impact on the tourism industry and its workers.
Source: https://nypost.com/2025/07/28/business/las-vegass-tipped-workers-say-income-fell-by-more-than-half