Jan. 23, 2026:
New numbers show South Dakota’s tourism industry remained a powerful economic driver in 2025, despite inflation and economic instability felt by many people throughout the year.
South Dakota Department of Tourism Secretary Jim Hagen expects some of that uneasiness to carry over into 2026, but people still want to travel.
Hagen says the Travel South Dakota website has a new, artificial intelligence tool to help plan a trip throughout the state.
Hagen says all South Dakotans– not just those directly working in hospitality or tourism jobs– have an impact on travelers’ experiences in the state.
Hagen released the annual report from Tourism Economics this week (Jan. 21, 2026) during the state tourism conference. The data shows record high numbers, with 14.97 million visitors having traveled to and within South Dakota in 2025, an increase of 0.38 percent from 2024. Those visitors spent $5.16 billion, representing a 1.1% increase over 2024.
In 2025, tourism accounted for 4.7% of the state’s total economy. Visitor activity generated $2.3 billion in household income for South Dakotans, supporting 59,145 jobs statewide. Tourism activity also generated $406.1 million in state and local tax revenue, representing 16.5% of all state sales tax collections. Without the tourism industry, each South Dakota household would have paid an additional $1,121 in taxes.
Jan. 21, 2026:
New numbers show South Dakota’s tourism industry remained a powerful economic driver in 2025, delivering steady visitation, consistent visitor spending, and continued tax relief for residents across the state.
According to results of an annual study conducted by Tourism Economics,14.97 million visitors traveled to and within South Dakota in 2025, an increase of 0.38 percent from 2024. Those visitors spent $5.16 billion, representing a 1.1% increase over 2024 and reinforcing tourism’s role as a stable contributor to the state’s economy. Both figures represent all-time highs for South Dakota’s tourism industry.
James Hagen, Secretary of the South Dakota Department of Tourism, announced the results today during the South Dakota Governor’s Conference on Tourism in Pierre, with more than 500 industry members in attendance.
“Tourism’s impact extends far beyond visitor spending,” said Governor Larry Rhoden. “This industry supports jobs, strengthens local communities, and provides meaningful tax relief for South Dakota families. These results highlight tourism’s essential role in sustaining one of the strongest state economies in the nation.”
“The tourism industry faced real challenges in 2025, from economic uncertainty to evolving travel behaviors, yet South Dakota continued to be resilient,” said Hagen. “That resilience speaks to the appeal of our destinations, the dedication of our tourism partners, and the incredible experiences our state offers visitors year-round.”
Tourism remains a critical contributor to South Dakota’s economy. In 2025, the industry accounted for 4.7% of the state’s total economy. Visitor activity generated $2.3 billion in household income for South Dakotans, supporting 59,145 jobs statewide.
Tourism activity also generated $406.1 million in state and local tax revenue, representing 16.5% of all state sales tax collections. Without the tourism industry, each South Dakota household would have paid an additional $1,121 in taxes.
As one of South Dakota’s leading industries, tourism continues to fuel local businesses while showcasing the state’s iconic landscapes, outdoor recreation, cultural heritage, and welcoming communities.
Travel South Dakota credits consistent domestic travel demand, an increase in day-trip visitors, and continued interest in South Dakota’s outdoor and cultural experiences as key contributors to the industry’s success in 2025. This is further supported by recreation leading spending growth, increasing 4.0% year-over-year.
To view the full 2025 Tourism Economics report, visit SDVisit.com.
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