SIOUX FALLS S.D. (KELO) — The South Dakota Department of Tourism shared what it is expecting to see this year from trends it is seeing locally and around the world.
According to a report from the South Dakota Department of Tourism, in 2024 South Dakota saw 14.9 million visitors (a 1.4% overall increase) with visitor spending at $5.09 billion (a 2.8% overall increase). Tourism also supports 58,824 jobs, and $2.2 billion in household income generated for South Dakotans, and $399 million generated in state and local tax revenue.
Secretary of the South Dakota Department of Tourism Jim Hagen said that its data usually lags by about 45 to 60 days in terms of seeing data for visitor spending and visitation, but he spoke on some trends the state is seeing so far this year.
“American travelers are telling us that their financial wellness has improved, with about 33% feeling better off now compared to a year ago,” Hagen said. “Sixty percent are saying that they’re prioritizing travel this year and we have about 92% of American travelers, already have existing trip plans.”
He added that most Americans are spending more on their vacations this year, with the average being around $5,000 which is up from previous years where it was $3,800.
Another topic was President Donald Trump’s recent tariffs on both Mexico and Canada and if South Dakota has seen an impact on its tourism industry as a result. Hagen said while it’s still too early to give a concrete answer on the topic, they are being very aggressive in continuing to foster and nurture their relationships with out-of-country tour operators and consumers.
“What we’re hearing in state right now is in surveying a lot of our partners, as of now they haven’t seen much of a negative impact,” Hagan said. “We have great relationships with Canadian tour operators and we’ll continue to nurture those relationships.”
He added that, as of now, SD Tourism is looking at the US Travel Association and Brand USA for more information on the topic. Hagen added that the US Travel Association is conducting a survey involving Canadian travelers.
Hagen said while international tourism doesn’t make up a huge percentage, there’s no question that international visitation is important.
“So post-COVID, I would say we’re, as a country, we’re probably about 85% back, to pre-pandemic levels of visitation, maybe a little bit higher than that, I expect to cover that gap within the next two years,” said Hagen.
Hagen added that the department typically focus on markets in the United Kingdom, Germany, France, Italy, Australia and New Zealand, adding that it’s starting to see numbers in those areas pick back up again.
Hagen said while there could be challenges, the department is focused on thinking long-term.
“So even though we may be having some hiccups right now or some potential hiccups, we’ve got to be thinking several years down the road and planting those seeds today, Hagen said. “We want to let them know when they’re ready to travel to South Dakota or to America, we’re more than happy to welcome them and we’ll be excited to see them.”
Hagen said that tourism is the state’s second-largest industry and is important to both travel hubs and more rural areas
“Tourism benefits counties and cities of all sizes, so we look at the amount of money that tourism is generating for state sales tax, which is nearing 16%,” Hagen said. “Those tax revenues are impacting at the state level, at the local level they’re helping to fund things like first responders and fire and infrastructure infrastructure needs that we have here in the state.”
