2025 South Dakota Governor’s Conference on Tourism
I had the pleasure of attending the 2025 South Dakota Governor’s Conference on Tourism, and let me tell you, it was quite an event. The conference brought together industry leaders, policymakers, and business owners from across “the 605” to discuss the current state and future prospects of tourism in our great state.
One of my highlights, working for an accounting firm, was the 2024 Economic Impact Report, where Secretary of Tourism Jim Hagen provided a data-driven overview of how tourism drives our local economy.
Economic Impact
In 2024, nearly 15 million visitors spent a total of $5.1 billion across the state! Visitor spending is distributed across various sectors:
Food & Beverage – $1.1 billion – 22% of visitor spending
Transportation – $1.1 billion – 21% of visitor spending
Retail – $1.1 billion – 21% of visitor spending
Lodging – $1.1 billion – 20% of visitor spending (this includes short-term rentals and second homes)
Recreation – $0.8 billion – 15% of visitor spending
Jobs
In 2024, tourism supported 58,824 jobs in South Dakota and generated $2.2 billion in labor income.
Taxes
In 2024, visitor spending generated nearly $400 million in state and local tax revenues. This revenue helps fund our essential public services and infrastructure, reducing the tax burden for local residents. Each household in South Dakota would need to be taxed an additional $1,105 to replace the visitor-generated taxes received by state and local governments in 2024.
KT’s Takeaway
While I’m not an accountant, I did attend this conference with two members of our Hospitality accounting team. Our goal was to gain a better understanding of the economic impact of tourism on our state and utilize this information to better serve our clients.
By understanding the revenue generation, revenue distribution, job creation, and tax revenues of the tourism industry, we can make informed decisions on financial planning, budgeting, and strategic decision-making to better support our clients’ businesses and their future plans.
Speaking of future plans, are you ready for the 85th Sturgis Motorcycle Rally? The conference was buzzing with anticipation of big, big numbers heading to the Black Hills this August.