South Dakota’s tourism landscape is experiencing a shift, with the southeastern region now surpassing the Black Hills in visitor spending. As reported by South Dakota News Watch, the state welcomed 14.7 million visitors in 2023, generating nearly $5 billion in tourism revenue.
Cheryl and Mark Okeson, a retired couple from Ortonville, Minnesota, exemplify this trend. They now prefer the quieter atmosphere of Watertown in northeastern South Dakota. “We’ve camped in the Black Hills many, many times, and it’s just so many people and a lot of this and that going on,” Cheryl Okeson explained to South Dakota News Watch during their August visit to Stoke-Thomas Lake City Park. “This is just more relaxed and more laid back, and that’s why we like coming here.”
The 14 counties surrounding Sioux Falls are attracting an increasing number of these visitors, reshaping traditional tourism patterns. Recent data reveals a notable shift in the state’s tourism dynamics. In 2023, the Southeast region generated $1.96 billion in tourism revenue, slightly surpassing the $1.92 billion earned by the Black Hills and Badlands region. Within the southeastern region, Minnehaha County made up the largest share of visitor spending at 29.3%, followed by Pennington County at 19.3%.
Teri Schmidt, CEO of Experience Sioux Falls, a tourism marketing group, expressed satisfaction with this development. “They’ve outpaced us for such a long time, it’s good to get above them for a change,” Schmidt said. However, she emphasized that the once-competitive relationship between the eastern and western parts of the state has evolved into a more collaborative approach.
Michelle Thomson, CEO of the Black Hills & Badlands Tourism Association, echoed this collaborative spirit. “I think it’s great because it’s an effort that the four regions are working hard on together,” Thomson stated. “We’re all really trying to maximize the time and the dollars that they spend in our state. So if we can get them to visit all four regions, that’s tremendous.”
Thomson noted that spending patterns differ between eastern and western tourists. While Black Hills and Badlands visitors tend to focus on outdoor activities, established tourism sites, and family attractions, Sioux Falls tourists are more likely to spend on weekend stays, drawn by frequent events, shows, and restaurant visits.
This collaborative approach is yielding positive results. In 2023, South Dakota saw a nearly 5% overall increase in tourism spending compared to the previous year, with all four designated regions experiencing revenue increases between 3% and 6%. The state’s total tourism spending rose from $4.73 billion in 2022 to $4.96 billion in 2023.
The state’s diverse offerings – from the iconic Mount Rushmore to the cultural attractions of Sioux Falls – are collectively contributing to a robust and growing industry. The shift in visitor spending patterns highlights the importance of promoting all regions of the state, ensuring that tourists can experience the full range of what South Dakota has to offer.
