Black Hills Tourism Faces Challenges Amidst Inflation and Economic Policies
The picturesque landscapes of South Dakota, particularly the Black Hills and Badlands, continue to be a major draw for tourists seeking natural beauty and outdoor recreation. However, the region’s tourism industry is experiencing a challenging phase, as highlighted during the 85th annual conference of the Black Hills and Badlands Tourism Association, held this past Wednesday.
Decline in Accommodation Bookings
Despite being a beloved destination, hotel occupancy in the Black Hills region has notably decreased by over 1.5 percent compared to the previous year, while short-term rentals have followed a similar downward trend in 2025. This marks a concerning development for local businesses relying on consistent visitor numbers.
Economic Pressures and Visitor Spending
Overall earnings within the tourism sector have seen a modest increase of more than 2 percent. However, this growth is likely attributed to inflation rather than an actual rise in visitor numbers. Michelle Thompson, president of the region’s tourism association, noted, “2025 has definitely been a mixed bag. Overall, our visitor spending is up just a little bit, but certainly businesses across the Black Hills – some are down, a majority are about even, and some are up a little bit. Looking forward to 2026, there is a lot of optimism.”
Contributing Factors: Inflation and Tariffs
Thompson attributed the potential stagnation in visitor numbers to factors like inflation and economic policies such as tariffs. These elements have significantly influenced tourism patterns, possibly discouraging travel plans for many potential visitors.
Bright Spots in National Park Visits
Nevertheless, there is a silver lining: the Black Hills remain a sought-after destination for outdoor enthusiasts, with a noted increase in National Parks visitation. This surge underscores the enduring allure of South Dakota’s natural marvels.
Conservation Efforts: Forever 605 Program
South Dakota’s commitment to sustainability and conservation is evident in the Forever 605 program. Thompson emphasized the program’s importance, stating, “South Dakota has this amazing program called Forever 605, and we talk about that a lot because we want people to love the Black Hills like a local. Take care of our places so they’re here for many generations to come for people that live here and people that want to come and experience it.”
Out-of-State Visitors Fuel Tourism
The Black Hills receive a considerable number of visitors from neighboring states, the Great Lakes region, and the southwest. High-spending travelers often originate from Denver, Western North Dakota, and the Twin Cities, signaling strong interest in the iconic landscapes of South Dakota.
- Hotel occupancy in the Black Hills decreased by 1.5% in 2025.
- Short-term rentals in the region also saw a decline.
- Overall earnings increased by over 2%, possibly due to inflation.
- Factors such as tariffs and inflation impact visitor numbers.
- Increase in National Parks visitation in the region.
- Forever 605 program promotes local conservation.
- Main out-of-state visitor origins: Denver, Western North Dakota, Twin Cities.
The Black Hills and Badlands Tourism Association remains optimistic about future prospects, aiming to leverage the region’s rich natural resources and cultural heritage to attract more visitors despite current challenges.
Continuing efforts in conservation, combined with strategic planning to manage economic impacts, could foster a more resilient tourism sector in the Black Hills, ensuring its sustainability for future generations.