Despite a statewide dip in tourism during the first half of 2025, the Black Hills region is holding steady, showing signs of resilience as South Dakota grapples with economic uncertainty and reduced international travel. While areas like Sioux Falls experienced a 9% decline in summer visitor spending compared to 2024, Rapid City and the surrounding Black Hills posted modest gains.
A recent report from the Better Business Bureau indicated a 3% increase in sales across food, retail, and hotels in Rapid City. Hotel occupancy rose slightly, and although August visitor numbers across the Black Hills dipped by about 1%, the region continues to outperform expectations.
Tourism experts note that inflation is reshaping visitor behavior, with travelers prioritizing essentials like lodging and meals over discretionary purchases. This shift is especially important for Black Hills communities such as Spearfish, Sturgis, and Rapid City, where tourism-generated sales tax plays a vital role in funding city operations. Another factor being noted is a decrease in international travelers from Canada in particular due to the trade disagreements with the US.
One major highlight this year was the 85th Sturgis Motorcycle Rally, which saw traffic counts rise by over 14% and tax revenue increase by 13%, providing a significant boost to the regional economy.
Looking ahead to 2026, the region is gearing up for America’s 250th anniversary celebrations. Plans include a fireworks display at Mount Rushmore and a potential presidential visit, positioning the Black Hills as a focal point for national attention and a likely surge in tourism.
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