Mixed results for 2026 tourism season

The 2026 tourism figures are in, and the results are mixed.  

According to Travel South Dakota’s global public relations and content services senior director, Katlyn Svendsen, 2026 started strong and summer visitation was steady.   Hotel occupancy was up 0.9 percent and state park visitation was up three percent. 

According to Svendsen, “We saw modest growth in 2026 over 2025, although performance varied by region and business.”  

Erica Layton, Hill City Area Chamber of Commerce executive director, echoed these findings, noting that while lodging and retail numbers were higher for June and July, restaurant numbers were down from the previous year. 

“We expected more for the 250th celebrations than materialized,” said Layton.  

“The economy was a factor this year. Gas prices and prices in general contributed to the lower than anticipated numbers,” Layton continued, noting that the number of visitors at the Hill City Visitor Information Center (VIC) were flat from the previous summer.  

On a positive note, Layton said data indicates stays at VRBOs and AirBNBs increased 37 percent from 2025. Layton cited food costs as a likely contributing factor. 

“More people were picnicking and eating out of coolers this season,” said Layton.  

The VRBO and AirBNB options provided travelers the ability to prepare their own food in an effort to lower costs, rather than dine at local restaurants.

Layton also noted that the Sturgis Motorcycle Rally numbers were down 11 percent this year, while the National Park Service reported a decrease in visitors to Mount Rushmore of six percent through August.  

“The logging show over Memorial Day weekend was great,” said Layton noting that the average Hill City business saw an increase from May 2025 of between 30 and 130 percent. 

Layton also noted, “The shoulder season has been extremely strong this year with a 100 percent increase in visitors at the VIC over last year.”

Amanda Blume, regional operations manager for Bird Dog Hospitality, owner of EverSpring Inn and Suites, said their revenue was up slightly from 2025. 

“Fourth of July weekend was huge,” said Blume, “and the fact that the Fourth fell on a weekend this year was helpful.” 

According to Amanda Payne, campground manager for Black Hills Trailside Park Resort, its numbers were up in terms of number of stays, but revenue didn’t increase noticeably due to recent price adjustments. Payne said they had expanded advertising avenues this year resulting in greater exposure and visibility. 

“We were fully booked for Fourth of July weekend,” said Payne, “but the remainder of June and July bookings were down.”  

Payne noted that Trailside Park and Resort also had difficulty securing its usual J1 workers for the season—employees who come to work on a non-immigrant visa issued by the United States to foreign nationals participating in approved work-and study-based exchange visitor programs. 

“We began the process in November for an employee who had worked for us previously, and by April she and a relative hadn’t even been able to schedule the visa appointment,” said Payne.

Stacia Tallon, City of Hill City finance officer said that year-over-year, September 2026 saw an increase of 3.23 percent from 2025 figures, from $193,237.93 to $199,481.88. October totals saw an even greater monthly increase, from $241,051.77 to $253,404.26, a 5.12 percent increase. Year to date increases from 2025 to 2026 were even stronger. As of the end of October, sales tax revenue increased from $1,173,558.66 in 2025 to $1,269,271.66 in 2026, a total of 8.16 percent.

Black Hills Badlands and Tourism Association (BHBTA) provided additional data regarding the 2026 tourism season. Overall spending in the Black Hills area decreased by 0.9 percent over 2025 totals. Hotel occupancy was down 1.4 percent, but short-term rentals showed strong growth with an increase of 9.8 percent.

According to information provided by BHBTA, age demographics trended up this year, with the top group of visitors to our area being among the 45-64 year-old age group, totaling 33.46 percent of the visitors. The Black Hills continue to be a draw for those of more modest means with the income bracket of zero to $50,000 accounting for 28.92 percent of this season’s visitors.

The restaurant segment did not experience the slight uptick in numbers and revenue experienced by the average area business.  Patty Colvin, owner and manager of Hill City Café, said her revenue dropped 15 percent in March and April from 2025 and fell 30 percent in May through August over last year. 

“It’s too expensive for families with kids to eat out,” Colvin said, noting that her customers fit the age bracket noted by BBHBTA.

Colvin said that September and October have increased, but not enough to make up for the substantial decreases of March through August.   

Emma Groninger, Keystone’s former director of tourism, commented on the boost to the area tied to celebrating America’s 250th, including a visit from President Donald Trump. Groninger noted that Keystone experienced a 35 percent increase in visitor center numbers over 2025.  

“This year’s warm temperatures gave us extended stay windows,” she said, noting Keystone had a steady season. “We didn’t really taper off this year.” 

Keystone’s seasonal highlights included Rushmore Heritage days, which included a parade and picnic, Sturgis pre-rally and a biker breakfast.