LAS VEGAS (FOX5) — Small businesses across Las Vegas are grappling with a significant drop in foot traffic, with some owners warning they may be forced to close if conditions don’t improve soon.
Trisha Baker, owner of Bellies to Babies Boutique, has witnessed a dramatic shift in her 7-year-old business.
“There are days when no one comes in,” Baker said. She describes the current climate as the worst she’s ever experienced.
The struggles facing local businesses coincide with a broader tourism decline in Las Vegas. According to the latest numbers from the Las Vegas Convention and Visitors Authority, the city saw 6.7% fewer visitors in August compared to the same month last year.
Baker believes the tourism downturn directly impacts her customer base.
“I definitely think so. I think that people don’t have the money for basic necessities, that this is a luxury thing,” she said. “ I don’t think people have the necessary needs for basics that they aren’t going to come in here for the extra money to splurge on something extra special.”
The economic impact extends well beyond individual businesses, but also for workers on the Las Vegas Strip.
“A large portion of our local economy is based around services, and those tourists in that particular sector. If they are experiencing a decrease in hours or a decrease in usual tips, that certainly will change their spending pattern as well,” said Bryan Wachter, president of The Retail Association of Nevada.
The spending decrease affects the entire Las Vegas community, Wachter says.
“We are going to feel this problem as a community,” he said.
For Baker, the situation has reached a critical point. If business conditions don’t improve, she faces a difficult decision.
“I think our biggest fear is, honestly, closing next year,” she said.
The challenges are compounded by additional factors, including the government shutdown and federal workers not receiving paychecks, which could further impact local spending patterns, according to Wachter.
The Nevada Retail Association reports a notable increase in customers using buy-now-pay-later programs for necessities, jumping from 17% to 24%, indicating broader financial strain among consumers.
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