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Diversifying Deadwood

from Destination Deadwood Winter 2021-2022

by Black Hills Pioneer

from Destination Deadwood Winter 2021-2022, page 9

Article from: Destination Deadwood Winter 2021-2022

Historic Heirloom Sells for $4...

Deadw d iversifyingD

BUSINESS BOOMING, GAMING GOING STRONG

Story and photos by Jaci Conrad Pearson W hile Deadwood has been a tourist destination since the onset of legalized gambling, welcoming 3-4 million visitors annually, the diversification transformation slowly happening up and down Main Street is fostering a burgeoning retail business boom bolstered by a vibrant, innovative gaming industry. Deadwood Chamber of Commerce Executive Director Lee Harstad said, like many other destinations, the Deadwood visitor has evolved and in order to continue to be relevant as a successful visitor destination, businesses and community organizations, alike, need to make adjustments to better position themselves for growth. “Deadwood’s Main Street has diversified offerings to appease a much wider range of guests, and our forward-thinking business owners continue to make changes to be successful,” Harstad said. “The past decade, when many of the gaming establishments switched gears to be more retail and food and drink oriented, it was a slow but somewhat shocking change as slot machines and table games were replaced by store counters and restaurant tables. While a big change, many visitors who haven’t been to Deadwood in some time definitely comment on these changes in a favorable way.” Bars and saloons to cabins, condos, and lodges and arts and entertainment to spas, wedding services, even a little bit of chainsaw sculpting and lots of recreating, Deadwood is diversifying to stay fresh and relevant to visitors and locals. “We see an increase annually in all categories of businesses at the Deadwood Chamber of Commerce. However, what’s more important is our extremely high percentage of retained members,” Harstad said. “We keep

our members, which shows that our business climate continues to be very strong, and our marketing and promotions to get people to come to town and support our members is working.”

Deadwood’s special events are designed to drive visitors downtown and that’s just what the town’s largest annual event did – in even a bigger way this year.

“Our events continue to be staples on visitors’ year-round itineraries. Our latest major event, Kool Deadwood Nites, had more than 800 registered cars, which is a record,” Harstad said. “Huge attendance numbers are becoming the norm for many of our events because we continue to improve the offerings. Outlaw Square hosted some big events this year, too, and the 2022 event calendar is looking even bigger. Deadwood continues to be an event destination, along with all the other reasons people choose us to visit, and at the center of those events are a dedicated group of individuals continually working to better the experience for all. Deadwood’s dedicated City employees and officials are absolutely wonderful and work to meet the needs of residents and guests alike and work in tandem to keep Deadwood’s wheels turning.”

With many storefronts formerly vacant, Deadwood’s Main Street has rebounded significantly over the last year.

For example, the once-shuttered Celebrity Hotel is back in business and thriving.

“Since the first of the year our hotel has been constantly filled during the weekends and as the summer season approached our weekday business was at least 75% filled and could have been better if our staffing was at 100%,” said Celebrity Hotel & Casino Managing Partner Ken Gienger.

Harstad said Deadwood’s history is a draw for visitors and gaming is the main reason Deadwood can continue to up the ante, with retail, restaurants and saloons helping to perfect the experience.

“Deadwood’s Main Street is alive and well. Some ownership changes and renovations may have resulted in some doors closing temporarily but Main Street is very much open for business,” Harstad said.

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“We do hear comments about some businesses closing early in the day or closing for the winter, but overall there’s a ton of positivity toward the business climate on Main Street.

Mike Rodman, executive director of the Deadwood Gaming Association said Deadwood gaming has continued to build on the 2020’s momentum.

“Deadwood started 2021 on a good footing, I believe in part to Gov. (Kristi) Noem’s ‘South Dakota is open for Business’ campaign and strong joint marketing efforts by the Deadwood Chamber and South Dakota Department of Tourism,” Rodman said.

When the COVID-19 pandemic first began, Deadwood’s casinos were shuttered for six weeks. What followed was a tremendous boom in people headed to Deadwood and the Black Hills. What was predicted to be a significant decrease in gaming revenue, ended up only a 4.5% decline.

“The relatively modest annual revenue decline was the smallest of any state with commercial casinos,” Rodman said. “As 2021 saw restrictions on many gaming jurisdictions, Deadwood really came into its own, being discovered as an integrated gaming destination with unmatched history and museums, outstanding recreation and world-class entertainment and events. Deadwood now boasts enhanced shopping and dining options as well as increased event days with the Outlaw Square.”

Deadwood hotel stays have also shown strong growth through the first half of 2021, with 202,311 rented room nights, up 42.42% from 2019 numbers.

“This equates to a rise of 11.3% in overall occupancy to 53% in the first half of 2021,” Rodman said. “The second

half of 2021 hotel stays should see continued growth with the reopening of the Trademark by Wyndham at Deadwood Gulch and the opening of the Four Points by Sheraton at the Tin Lizzie Gaming Resort, adding additional hotel inventory to Deadwood’s totals.” With the Sept. 9 launch of legal sports wagering in Deadwood, another important tool has been added to Deadwood’s toolbox to keep us as a competitive destination. “Sports wagering will most likely expand our customer “ Sports wagering will most likely expand our customer base and enhance our marketing opportunities, which in turn should continue base and enhance our marketthe very positive growth we have been experiencing in the first half of the year, - Mike Rodman ing opportunities, which in turn should continue the very positive growth we have been experiencing in the first half of the year,” Rodman said. “I have every belief that given the incredible marketing job of the Deadwood Chamber, the positive business climate fostered by the City of Deadwood, and the great spirit of cooperation within the Deadwood business community, 2021’s estimated gaming revenue — $120 million —could be the new normal moving forward.”