Labor Day generally marks the end of peak tourism for South Dakota. Preliminary numbers show lower tax revenue from visitors than this time last year. While several small-town economies rely on tourism, even the state’s largest city is feeling the impact.
A weak season can cause yearlong ripple effects for small-town economies that rely on tourism numbers like Wall, Redfield or Keystone.
For Experience Sioux Falls CEO Teri Schmidt, that’s a troubling thought for her hometown.
“For some people, who live and breathe by their tourism business, if the season is not good it really imposes a difficult situation for them," Schmidt said. "How will that affect my hometown of Winner? Overall, it’s going to be an economic negative. It’s an economic negative for Sioux Falls right now.”
Sales and hotel room taxes are down year-over-year across the state. That ripple becomes a wave for the restaurants and boutiques that rely on extra summertime revenues.
One key market has largely evaporated: international visitors, especially from the north.
“Ever since the tariffs and the federal situation kicked into gear," Schmidt said. "Usually, Canadians are a very strong market for us, and we have seen far fewer this summer.”
Schmidt said it’s not easy yielding for policy priorities in Washington.
“It’s totally out of our hands and that’s what makes this so frustrating, and really kind of a bummer,” Schmidt said.
Yet, Schmidt said industry leaders and businessowners can’t give up.
“We know people want to travel, and maybe they can’t right now but when they do decide, we want to be the place that’s on their radar," Schmidt said. "When they pull that screen up, we’re pushing as hard as we ever have.”
Despite this, large events like the Sturgis Motorcycle Rally saw an increase in overall attendance and tax revenues. National Parks also saw strong attendance for the 2025 season.