South Dakota Tourism Revenue Slides Across Fort Hays, Mount Rushmore, Wall Drug, Badlands, And Sturgis Rally Amid Declining Visitor Numbers, New Update

In cities such as Sioux Falls, overall visitor spending fell by nearly 9% compared with the same period in 2024. Small tourism businesses, which rely heavily on seasonal traffic, felt the brunt of this downturn. Analysts attribute this cautious behavior to persistent inflation, uncertainty about the national economy, and political tensions, all of which have made travelers more conservative with discretionary spending.

Cross-border travel from Canada, once a robust contributor to the local economy, declined markedly in 2025. Preliminary estimates indicate a 20% drop in Canadian visitors to South Dakota, reflecting broader patterns across northern U.S. states. On a national scale, reduced international travel is expected to cost the United States an estimated $12.5 billion in lost revenue this year. Iconic destinations from Las Vegas to smaller regional attractions have felt the pressure of fewer overseas tourists, highlighting the vulnerability of tourism-dependent economies to global shifts.

Political and trade tensions have also played a role in dampening tourism. Certain U.S. policies and diplomatic frictions with Canada discouraged travel across the border, with some visitors canceling planned trips entirely. This shift not only affected revenue at key attractions but also disrupted the broader ecosystem of hotels, restaurants, and retail establishments that rely on steady tourist flows.

Despite these setbacks, the South Dakota tourism industry showed signs of resilience. National parks continued to attract large crowds, and major events delivered strong results. The 2025 Sturgis Motorcycle Rally, for instance, recorded an 11% increase in vehicle counts and a 13% rise in tax revenue compared with 2024. Such large-scale gatherings illustrate the enduring appeal of well-established events and their capacity to draw both regional and national visitors.

Other areas also reported positive trends. Visitor counts near Badlands National Park grew by more than 7% in June 2025 compared with the previous year, reflecting ongoing interest in outdoor recreation. Popular attractions like Wall Drug experienced modest revenue gains during peak summer months, signaling that domestic travelers continue to explore South Dakota and spend at local businesses. Although hotel occupancy fell slightly in some regions, the decline was balanced by higher room rates and an increase in last-minute bookings, suggesting a shift in consumer travel behavior rather than an outright drop in demand.

Looking toward the latter part of 2025 and into 2026, tourism operators are optimistic about a rebound. Fall events such as the 60th anniversary of the Custer State Park Buffalo Roundup and the annual pheasant hunting season are expected to draw significant crowds. National surveys further reinforce a positive outlook, indicating that over 90% of U.S. travelers plan to take domestic trips in the coming year, offering hope for sustained recovery and growth.

South Dakota tourism revenue fell across Fort Hays, Mount Rushmore, Wall Drug, Badlands, and the Sturgis Rally this summer, driven by fewer visitors, shorter vacations, and reduced spending, particularly among Canadian travelers.