UNDATED – For the most part, the summer of 2025 has not been kind to the South Dakota tourism industry, which saw fewer visitors and lower spending than in previous years.
Across the state, tourism promoters and operators are sharing some disheartening numbers, including reduced hotel occupancy rates and lower spending by those who visited. One Black Hills business – Fort Hays Wild West Town south of Rapid City – is off about 40% over prior years and the co-owner described summer 2025 as “brutal” and the worst he has seen in many years.
The Sioux Falls tourism market is also having a bad summer, seeing a 9% drop in monthly visitor spending at one point this summer.
State tourism secretary Jim Hagen told News Watch that tourists were cautious about booking trips and spending money this summer. Nagging inflation and unease over the national economy left some travelers with less expendable income. Meanwhile, Canadians turned off by President Trump’s tariffs and rhetoric about annexing the country are blamed for a 20% dip in visits from the usually strong Canadian market.
But there have been some bright spots. The Sturgis rally saw higher annual visitor counts and tax collections of $1.6 million were up by 13% over the prior year. Hagen says national parks also saw strong attendance this year, and Wall Drug owner Rick Hustead told News Watch that his famous business saw slight increases in revenues compared to 2024.
Hagen said he is hopeful for a strong fall shoulder season with the Custer State Park Buffalo Roundup and the annual pheasant season still to come.
Hagen is also hopeful that 2026 will be a big year for tourism – and patriotism – as the Rushmore State plays a big role in celebrating the nation’s 250th birthday, including with fireworks returning to Mount Rushmore on July 3, 2026.