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South Dakota Sets Record for Visitor Spending

1/17/2008
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PIERRE, S.D. –Visitor spending in South Dakota reached a record $941 million dollars in 2007, representing an 8.8% growth rate over 2006 and exceeding the Travel Industry Association (TIA) forecasted national growth percentage of 5.7%.

The $76 million growth translates into the largest one-year increase in visitor spending dollars in the state’s history. Overall, the visitor industry in South Dakota is estimated to have a $2.3 billion impact on the state’s economy.

"The numbers are in and they reflect a statewide focus and commitment to making South Dakota one of the top visitor destinations in the country," said Governor Mike Rounds. "We continue to outpace the national averages largely due to our ability to work together as a state for a common goal and our willingness to innovate and deliver a great product. The most rewarding aspect of this year is that the growth was statewide and impacted nearly every community and county in South Dakota."

Other key economic indicators include an addition of more than 700 jobs in the tourism sector and more than $48 million in combined gas and sales tax receipts directly attributable to visitor spending.

All four of South Dakota’s regions showed growth in visitor spending in 2007. The Glacial Lakes and Prairies and the Great Lakes regions posted the largest percentage of year-over-year growth with 12.5% and 12.3% respectively. The Black Hills, Badlands and Lakes region’s tourism spending grew by more than $43.3 million, an 8.5% increase and the Southeast region posted $13.3 million in growth, representing a 6.7% increase. The balanced spread of growth showed that while the most populous regions of the state posted the largest revenue gains, the smaller, less populated regions showed renewed strength in overall percentage growth.

"South Dakota had 14 counties that grew their tourism revenues by more than a million dollars and 28 counties that grew their tourism spending by more than 10%," said Department of Tourism and State Development Secretary, Richard Benda. "That means the small, out-lying communities are getting more visitors than they have in the past and that the entire state is seeing direct and indirect positive impacts from tourism."

Much of the success of the tourism industry in South Dakota can be credited to the partnerships between public and private businesses involved in the travel industry. The South Dakota Office of Tourism and its industry partners have expanded their collaborative marketing efforts largely supported through aggressive cooperative campaigns and the Governor’s Million Dollar Challenge.

"In 2003 we set a goal as a part of the 2010 Initiative to double visitor spending and with this year’s industry efforts and the success we’ve achieved as a state, we’ve put that goal within reach," said Billie Jo Waara, director of the South Dakota Office of Tourism. "We’ve succeeded in spite of the national tourism growth percentages trending down, and it’s going to be our ability to work together to support and promote South Dakota that will keep our state on pace to meet our goals."

The Office of Tourism promoted the state with a budget of $9.4 million for fiscal year 2007. The funds came primarily from the statewide tourism tax, as well as supplemental funding from the Deadwood gaming tax.

The Economic and Fiscal Impact Study is commissioned by the South Dakota Office of Tourism and compiled by Dr. Michael K. Madden. The study is part of the 2010 Initiative Goal of doubling visitor spending.

The complete 2007 Annual Report and the 2007 Economic and Fiscal Impact Study can be found at www.SDVisit.com.

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About the Governor’s Million Dollar Challenge

The Million Dollar challenge began in 2006 when Governor Mike Rounds committed an additional $1 million to the Office of Tourism’s annual budget to invest in marketing, provided that the visitor industry matched it with their own marketing investment. The Million Dollar challenge is crucial because it helps the smaller communities that typically don’t see as much revenue coming in from visitor spending. More information can be found at http://www.sdvisit.com/programs/million/index.asp.

NOTE: Go to www.SDVisit.com for the complete 2007 Annual Report and the 2007 Economic and Fiscal Impact Study. This will be available Friday, Jan. 18.

Estimated Total Visitor Sales – Volume by County and Percent Change

County

2006

2007

Change

Aurora

$1,798,429

$1,843,190

+2.5%

Beadle

$9,327,444

$10,153,976

+8.9%

Bennett

$741,815

$872,106

+17.6%

Bon Homme

$1,427,952

$1,579,627

10.6%

Brookings

$11,760,910

$13,881,621

+18.0%

Brown

$18,445,314

$20,572,420

+11.5%

Brule

$11,192,932

$12,761,162

+14.0%

Buffalo

NA*

NA*

NA*

Butte

$8,216,332

$8,557,980

+4.2%

Campbell

$920,835

$939,900

+2.1%

Charles Mix

$5,073,837

$5,318,201

+4.8%

Clark

$1,051,414

$1,775,933

+68.9%

Clay

$7,244,666

$8,119,996

+12.1%

Codington

$17,911,884

$19,224,596

+7.3%

Corson

$842,061

$1,212,534

+44.0%

Custer

$53,321,962

$55,520,771

+4.1%

Davison

$32,279,619

$33,918,651

+5.1%

Day

$2,381,495

$3,476,949

+46.0%

Deuel

$1,279,161

$1,523,042

+19.1%

Dewey

$933,809

$991,171

+6.1%

Douglas

$798,501

$1,356,358

+69.9%

Edmunds

$1,326,408

$1,649,615

+24.4%

Fall River

$11,993,072

$12,175,925

+1.5%

Faulk

$1,385,715

$1,782,763

+28.7%

Grant

$3,304,445

$4,106,506

+24.3%

Gregory

$2,262,311

$3,368,876

+48.9%

Haakon

$613,717

$773,161

+26.0%

Hamlin

$1,272,479

$1,385,568

+8.9%

Hand

$1,622,138

$1,859,756

+14.6%

Hanson

$593,305

$739,210

+24.6%

Harding

$641,663

$519,809

-19.0%

Hughes

$15,348,527

$18,697,665

+21.8%

Hutchinson

$1,694,541

$1,990,446

+17.5%

Hyde

$378,284

$349,637

-7.6%

Jackson

$8,466,879

$8,870,329

+4.8%

Jerauld

$1,104,400

$1,044,127

-5.5%

Jones

$5,930,296

$6,397,247

+7.9%

Kingsbury

$3,123,535

$3,277,086

+4.9%

Lake

$5,345,787

$5,727,857

+7.1%

Lawrence

$116,150,596

$120,850,811

+4.0%

Lincoln

$8,763,802

$11,118,061

+26.9%

Lyman

$9,070,765

$8,784,704

-3.2%

McCook

$1,515,726

$1,811,587

+19.5%

McPherson

$952,948

$911,140

-4.4%

Marshall

$2,125,550

$2,924,302

+37.6%

Meade

$59,860,362

$61,281,987

+2.4%

Mellette

$269,076

$235,543

-12.5%

Miner

$810,595

$778,432

-4.0%

Minnehaha

$116,163,866

$121,967,789

+5.0%

Moody

$8,135,074

$8,289,640

+1.9%

Pennington

$235,873,376

$269,606,033

+14.3%

Perkins

$1,239,714

$1,340,332

+8.1%

Potter

$3,118,439

$3,652,405

+17.1%

Roberts

$3,110,839

$3,406,864

+9.5%

Sanborn

$661,855

$800,902

+21.0%

Shannon

$1,070,256

$928,309

-13.3%

Spink

$3,155,970

$3,031,407

-3.9%

Stanley

$2,808,871

$2,667,006

-5.1%

Sully

$2,157,189

$2,195,335

+1.8%

Todd

$4,219,154

$4,193,105

-0.6%

Tripp

$4,154,770

$4,589,057

+10.5%

Turner

$1,002,214

$1,058,320

+5.6%

Union

$5,945,768

$6,129,294

+3.1%

Walworth

$4,158,181

$4,749,872

+14.2%

Yankton

$14,682,601

$15,237,187

+3.8%

Ziebach

$319,915

$202,744

-36.6%

* Not available: Taxable sales not generated for lodging, eating and drinking establishments for Buffalo County 2000-2007.