South Dakota Tourism Reaches Record Economic Impact in 2025

Northeast Radio SD News – South Dakota - South Dakota’s tourism industry reached new heights in 2025, setting records for both visitation and visitor spending despite a shifting economic landscape.

According to an annual study by Tourism Economics released Wednesday, 14.97 million visitors traveled through the state in 2025, a slight increase over the previous year. These travelers spent a record $5.16 billion, up 1.1% from 2024.

James Hagen, Secretary of the South Dakota Department of Tourism, announced the figures during the South Dakota Governor’s Conference on Tourism in Pierre. Addressing more than 500 industry professionals, Hagen noted the industry’s ability to remain stable amid broader economic uncertainty.

“The tourism industry faced real challenges in 2025, from economic uncertainty to evolving travel behaviors, yet South Dakota continued to be resilient,” Hagen said.

The industry’s performance provided significant tax relief for South Dakota residents. Tourism activity generated $406.1 million in state and local tax revenue, accounting for 16.5% of all state sales tax collections. State officials noted that without this revenue, the average South Dakota household would have paid an additional $1,121 in taxes.

Governor Larry Rhoden emphasized that the industry’s influence extends into the daily lives of South Dakotans by supporting 59,145 jobs and generating $2.3 billion in household income.

“This industry supports jobs, strengthens local communities, and provides meaningful tax relief for South Dakota families,” Rhoden said. “These results highlight tourism’s essential role in sustaining one of the strongest state economies in the nation.”

Travel South Dakota attributed the year’s success to steady domestic demand and a rise in day-trip visitation. Spending on recreation grew the most, rising 4.0% from 2024. Officials credited the state’s outdoor landscapes and cultural heritage for maintaining South Dakota’s appeal as a year-round destination.

In 2025, the tourism sector accounted for 4.7% of the state’s total economy. Detailed results of the 2025 Tourism Economics report are available on the Department of Tourism’s website.