Travel & Tourism Outlook for 2022

By Andrew Weeks

Katlyn Svendsen is excited about travel and tourism in her home state. And according to the numbers from last year, she has every right.

2021 was, in fact, a record-breaking year for South Dakota. Visitors to the Mount Rushmore State spent $4.4 billion in 2021, an increase of 30% over 2020. The number surpasses all previous records by 6%.

Svendsen, global media and public relations director for South Dakota Department of Tourism, said the state is primed for another fantastic year.

In total, South Dakota welcomed 13.5 million visitors, an increase of 26% over 2020, with tourism generating $344 million in state and local tax revenue.

“I’m excited that the American traveling public has this great interest in the outdoors and visiting rural America,” she said, noting that one of the big pushes for South Dakota is to promote sites across the state and not just the usually popular venues. “We’ve seen that trend somewhat coming over the last five years. But of course COVID really pushed that even further with people wanting to be outdoors and feeling safe and secure that way and having a deep appreciation for the outdoors and the rural communities that our states collectively have in our Midwest region. And having people really appreciate that is exciting – to get them out to experience it and to see what this Midwest is all about.

MOUNT RUSHMORE IS SOUTH DAKTA’S MOST POPULAR ATTRACTION, BUT THERE ARE MANY MORE PLACES TO VISIT ACROSS THE STATE.

“It’s more than being Midwest nice. It’s about a culture, it’s a way of life. That’s where the majority of your food is coming from. And to get out and experience that – get out into the state parks, pick up a new hobby like fishing or hunting or hiking, biking, whatever it might be. I’m hoping that that’s more than a trend and that people find really sincere value and meaning for them as an individual and that will carry with them through the rest of their life.”

North Dakota

The tourism and hospitality sectors in 2021 rebounded from 2020 in the Peace Garden State and exceeded 2019 numbers, according to Sara Otte Coleman, director of tourism and marketing for North Dakota. In fact, she said, third quarter receipts were at a five year high, but noting at the time Prairie Business reached out that she was still awaiting fourth quarter numbers.

“While we acknowledge not all food service is attributable to tourism, retail taxes also increased, a portion of which is attributed to visitors,” she said. “Year-to-date tax receipts in these sectors show the accommodation and food services sector lags 2019 slightly. Q4 we hope will propel the annual 2021 receipts above 2019.”

Coleman said it’s been tough for North Dakota to fully recover to pre-pandemic levels because of at least one big glitch: The previous border closure with Canada.

“While the interest in North Dakota is strong and growing from all states, the loss of our Canadian visitors has not allowed us full recovery.,” she said. “In 2021 there were only 155,912 personal vehicles and bus passengers entering North Dakota, a 90% drop from the 1,068,700 we saw in 2019. This amounts to an approximate loss of visitor spend of $143,205,800 in 2021. Total losses from Canadian visitor spending due to the pandemic is estimated at $275,209,736. North Dakota is also a business travel and conference destination and this sector has not recovered as well as leisure travel.” continued on page 16

But she is optimistic about good things in 2022, especially as interest in North Dakota continues. That interest expands when people learn about the many offerings the state has in the way of recreation and visitor experience.