Tourism industry shows resilience

South Dakota’s tourism industry held its own compared to other states during the COVID-19 pandemic. During a Thursday address, Gov. Kristi Noem and Jim Hagen, secretary of the Department of Tourism, revealed 2020 tourism economic impact numbers.
According to the annual study done by Tourism Economics, South Dakota welcomed 12.6 million visitors, a decrease of only 13 percent from the year before. Despite the challenges of COVID-19, South Dakota was one of the best performing states in the country.
Visitors to South Dakota spent $3.4 billion, a decline of only 18 percent. For comparison, visitor spending was down an average of 45 percent across the country. Through the summer months, South Dakota ranked third best in the country in domestic bookings.
Spending generated by visitors flowed through the economy and contributed $2.6 billion in GDP, accounting for 4.7 percent of the state’s economy.
“South Dakota’s tourism industry faced many challenges in 2020. They adapted and turned it into an incredible year,” noted Noem. “Because of their efforts, we were able to put more than $3 billion into South Dakota’s economy and set the state up for a very bright future.”
“Though the tourism industry has always been resilient, 2020 proved it more than ever,” Hagen said. “Tourism in South Dakota is a job-creating, revenue-generating industry that plays a vital role in supporting the state’s economy year after year. And it didn’t make a difference just for the state’s bottom line. This money greatly impacts communities and families across South Dakota.”
In 2020, tourism generated $276 million in state and local tax revenue. Without tourism in South Dakota, each household would pay an additional $780 more in taxes each year.
2020 economic impact figures:
• 12.6 million – the number of visitors who came to South Dakota.
• $3.4 billion – the amount of visitor spending
• $2.6 billion – the amount of GDP contributed to the state’s economy
• $276 million – the state and local tax dollars generated by travel and tourism activity. Tourism accounts for 11 percent of state sales tax collections.
• $157 million – amount of tax revenue collected by local governments from travel and tourism activity
• $119 million – amount of tax revenue collected by the state of South Dakota from travel and tourism activity
• 49,500 – number of jobs supported by the tourism industry, representing one out of 12 jobs in South Dakota. Tourism generated $1.6 billion in income for those employed in those jobs.
Additional 2020 travel indicators:
• 46.3 percent – average hotel occupancy for the year, surpassing the national average of 44.7 percent
• 3.9 million – the number of hotel room nights booked in 2020
• 883,000 – number of room nights booked on AirBNB or Homeaway in 2020, a 22.3 percent increase
• 8 million – number of visitors to South Dakota’s state parks, representing a 31 percent increase.
• 2 million – visitors to Custer State Park, reaching this mark for the first time in history
• 408,000 – airport arrivals at Sioux Falls and Rapid City regional airports, a 48 percent decrease
To view the full 2020 Tourism Economics report visit SDVisit.com.

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