Rapid City saw a modest 1.03% decline in tourism-related sales tax collections this May compared to the same month in 2024, according to a report presented at Wednesday’s Legal and Finance Committee meeting.
City Finance Director Daniel Ainslie noted that May 2024 was an exceptionally strong month for tourism revenues, which made this year’s slight drop more noticeable.
Despite the dip in tourism numbers, general sales tax collections for May rose by nearly 1.9% compared to last year. Additionally, sales tax revenues for the city’s general fund are trending 0.2% above budget projections for 2025.
Ainslie pointed to a specific factor behind the tourism decline noting reduced alcohol sales contributed to the softer tourism figures.”
He added that May was still a strong month overall, as construction activity in the city continues to ramp up.
Comments