State tourism mixed

Tourism is one of the biggest industries in all of South Dakota.

In spite of the ongoing COVID-19 pandemic, 2020 was no different.

According to a presentation by the South Dakota Department of Tourism prepared by Tourism Economics, tourism represented 4.7 percent of South Dakota’s economy and supports 8.2 percent of all jobs within the state.

“Though the tourism industry has always been resilient, 2020 proved it more than ever,” said Jim Hagen, secretary of the South Dakota Department of Tourism. “Tourism in South Dakota is a job-creating, revenue-generating industry that plays a vital role in supporting the state’s economy year after year. And it didn’t just make a difference for the state’s bottom line. This money greatly impacts communities and families across South Dakota.”

Tourism Economics said the pandemic did impact 2020 visitor activity. In this past year, 12.6 million visitors spent $3.4 billion in the state; however, visitation declined 13 percent and visitor spending dropped 18 percent statewide as the pandemic impacted travel.

Nevertheless, Tourism Economics said losses have gotten smaller in South Dakota as 2020 ended.

For this past year, visitors generated $276 million in sales tax and local taxes, which equates to a savings of $780 for every household in South Dakota.

For jobs, employment supported by visitor spending accounted for 49,500 jobs.

For the nearly 13 million who visited the state in 2020, visitation declines were smaller for in-state travelers versus those coming from outside the state.

Further, according to Tourism Economics, while the $3.4 billion in visitor spending equated for an 18 percent decrease, food and beverage spending held its own as both prices and spending opportunities fell in other sectors as a result of the pandemic.

“While the annual numbers are poor, indicators in the latter part of 2020 are not as bad as earlier in the year,” the report reads. “The shutdowns in the spring cut travel by three-quarters at the worst point. However, once South Dakota began reopening and the weather warmed up, losses shrank as South Dakota welcomed visitors from areas with more restrictions.”

Statewide, though, visitation fell by 1.9 million in 2020, which was a decline of 12.9 percent. This brings visitation levels back to 2021 numbers.

Tourism Economics found that visitation losses were higher for out-of-state residents versus in-state travelers.

For the entire state, visitor spending declined 18 percent, falling back to $3.4 billion. The pandemic, Tourism Economics said, and its various travel restrictions cut $730 million from 2019 visitor spending levels.

The biggest declines were in the travel sector, mailing gasoline and lodging, which exacerbated the decline in spending.

However, the numbers show that while visitor via sales tax was at its lowest in April, by the end of the year numbers were at a more normal level with no real loss or gain over the previous year.

For the $3.4 billion spent by visitors to South Dakota, $817 million was spent on food and beverage (24.3 percent), $751 million was spent on retail (22.3 percent), local transportation had $644 million (19.2 percent) spent, $605 million (18 percent) was spent on lodging, $495 million (14.5 percent) was spent on recreation and $57 million (1.7 percent) was spent on air travel.

2020 Economic Impact Figures:

• 12.6 million – the number of visitors that came to South Dakota. Despite the pandemic, South Dakota saw a decline of only 13 percent from the previous year.

• $3.4 billion – the amount of visitor spending, a decrease of 18 percent

• $2.6 billion – the amount of GDP contributed to the state’s economy, representing 4.7 percent of the South Dakota economy

• $276 million – the state and local tax dollars generated by travel and tourism activity. Tourism accounts for 11 percent of state sales tax collections.

• $157 million – amount of tax revenue collected by local governments from travel and tourism activity

• $119 million – amount of tax revenue collected by the State of South Dakota from travel and tourism activity

• $780 – the amount of tax dollars each South Dakota household saves because of the tourism industry

• 49,500 – number of jobs supported by the tourism industry, representing one out of 12 jobs in South Dakota. Tourism generated $1.6 billion in income for those employed in those jobs.

Additional 2020 travel indicators:

• 46.3 percent – average hotel occupancy for the year, surpassing the national average of 44.7 percent

• 3.9 million – the number of hotel room nights booked in 2020

• 883,000 – number of room nights booked on AirBNB or Homeaway in 2020, a 22.3 percent increase

• 8 million – number of visitors to South Dakota’s state parks, representing a 31 percent increase.

• 2 million – visitors to Custer State Park, reaching the two million mark for the first time in history

• 408,000 – airport arrivals at Sioux Falls and Rapid City Regional Airports, a 48 percent decrease

To view the full 2020 Tourism Economics report visit SDVisit.com.