Las Vegas leans on F1 as weaker consumer sentiment hits tourism

LAS VEGAS :After a rocky debut and a softer second year, the Las Vegas Grand Prix is emerging as a stabilizing force for the city's tourism industry just as visitor demand shows signs of weakening, the head of the local tourism authority said.

"Year one was logistically very challenging," Steve Hill, CEO of the Las Vegas Convention and Visitors Authority, told Reuters.

"The event itself was great but we were under construction basically for eight months and that was hard on people."

Logistics improved the following year as the permanent track was in place, but "demand wasn't the same," he added.

WELCOME ECONOMIC BOOST

Now in its third year, the Formula One race is taking place at a moment when Las Vegas can feel the difference between a packed calendar and an ordinary week, Hill said.

"We're going through kind of a downturn here in 2025 for a number of different reasons," he said.

"It serves to point out that you can't take for granted the impact an event like this has, and I think the community sees that."

Hill said the slowdown reflects more than just tough comparisons with record-setting years in 2023 and 2024, when Las Vegas hosted the Super Bowl and other marquee events. He pointed instead to waning consumer confidence.

"We are certainly seeing a downturn that is largely driven by consumer sentiment - concern about the economy, jobs, and affordability."

As a destination heavily dependent on discretionary spending, Las Vegas is especially vulnerable when households feel strained, he said.

CANARY IN THE COAL MINE

"We are a little bit of a canary in that we are a very discretionary destination," Hill said.

When people are worrying about housing, food and education costs, "we're one of those decisions that they can make to