During good times, hotel occupancy rates are very high and lots of money is thrown around in the casinos.  But when times are getting tough, less people head to Las Vegas and those that do go tend to be tighter with their money.  We saw a perfect example of this during the Great Recession.  Once the global financial crisis hit, gambling revenues in Las Vegas plunged.  The following comes from an ABC News article that was published in 2009…

To almost everyone — and especially the Germans — Las Vegas seemed recession-proof. But now, since the summer of 2008, gambling revenues have dropped by more than 10 percent (see graphic) after having plunged to as much as 25 percent in the months immediately following the bankruptcy of Lehman Brothers.

Of course things eventually turned around and Las Vegas thrived for many years.

But now another enormous shift is taking place.  A new downturn has begun "with hotel occupancy, visitor numbers and spending all slipping"…

Las Vegas is experiencing a notable downturn in tourism, with hotel occupancy, visitor numbers and spending all slipping.

Industry data points to several key reasons behind the shift, including rising costs, fewer international travellers, and broader economic uncertainties.

So why is this happening?

It doesn't take a rocket scientist to figure it out.

Despite the absolutely nonsense that you hear on CNBC, the truth is that the U.S. economy is rapidly going in the wrong direction.

As a result, occupancy rates at Las Vegas hotels are absolutely plummeting…

Las Vegas hotels are posting some of the steepest year-over-year performance declines among major U.S. markets this summer as international visitor weakness and economic uncertainty take a toll.

Preliminary STR data indicates Las Vegas occupancy fell 14.9% in June, which, if actualized, would mark the city's deepest monthly decline so far this year.