RAPID CITY, S.D. – The owners of the Fort Hays Old West Town, a tourism destination just south of Rapid City, have about 150 days each year to turn a profit, relying on robust visitor spending from Mother's Day to mid-October.
For more than 50 years, the family-run operation has made it work and was able to expand offerings to include a Wild West musical dinner show, a bus tour operation and a roller coaster where riders can shoot replica guns at buffalo statues.
While second-generation operators Clint and Krystal Jones have seen some ups and downs over the years, they have rarely experienced such a poor season of tourism spending as they have in the summer of 2025.
"It's been brutal," Clint Jones said of the business on U.S. 16 that is famous for its 99 cent all-you-can-eat pancakes and collection of historical buildings and artifacts. "It’s been absolutely brutal this year.”
Krystal Jones, Clint's wife and business co-owner, told News Watch that Fort Hays has seen revenues at its five separate businesses fall by 20% to 40% this year. The Mount Rushmore Tours guided bus operation had the greatest decline.
Fort Hays has endured the same headwinds that slowed revenues at many tourism businesses across the state and nation – reduced spending by tourists, shorter durations of vacations and a dramatic drop in international visitors, especially from Canada.
"You take the Canadians away, and all the families who usually might have taken a two-week vacation this summer — we’re just not seeing them," said Teri Schmidt, CEO of Experience Sioux Falls, a leading East River tourism promotion agency.
At one point this summer, visitor spending in Sioux Falls was down 9% compared to 2024, Schmidt said. "I feel so bad for the small businesses who live by what happens in the tourism season because they’re hurting," she said.
Causes: Inflation, economic unease and politics
South Dakota Secretary of Tourism Jim Hagen and other experts in the field said many Americans have been reluctant to plan trips and spend money due to nagging inflation and uncertainty over the future of the national economy.
"I feel so bad for the small businesses who live by what happens in the tourism season because they’re hurting." - Teri Schmidt, CEO of Experience Sioux Falls
He's aware that some South Dakota tourism operators have suffered during what he called “an unusual summer season.”
Hagen said state data is incomplete in regard to visitor and revenue outcomes for the summer months, but he is hopeful a slow summer can be boosted by a busier fall.
“When push came to shove, consumers were a little bit more cautious on travel this summer,” Hagen told News Watch. “Inflation, unrest about the economy, we saw that nationally and in this state as well, so everyone is seeing the same sort of funk.”
While tourists have still visited the state, many spent less while here, Hagen said. That can be bad news for tourism operators but also for the state general fund, about 60% of which is annual sales and use taxes.
South Dakota, like other states near the Canadian border, saw a reduction in tourists from the north this summer. Hagen said early estimates show about a 20% drop in Canadian visits to South Dakota so far in 2025.
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The U.S. economy could see a $12.5 billion loss in revenues in 2025 due to reduced international travel to the states, according to the World Travel & Tourism Council. Some traditional destinations such as Las Vegas have seen major declines in visitors and spending.
Schmidt said tariffs and President Donald Trump's stated desire to make Canada the 51st U.S. state have put a chill on Canadian tourism in South Dakota.
"They’re mad at America," she said. "They’re not happy with what the president is doing. And some of them, when they canceled, have said point blank, 'We’re not coming because we don’t like what your country is doing to ours,'" she said.
Not all doom and gloom in 2025
There have been some bright spots for tourism in South Dakota this year.
The state has seen high national park attendance and strong numbers from the annual Sturgis Motorcycle Rally, Hagen said.
The 2025 rally, the 85th version of the event, saw an 11% increase in vehicles counted, according to the city of Sturgis. Overall tax revenues jumped to $1.6 million, a 13% increase over 2024, according to the state Department of Revenue.
“It wasn’t the summer we hoped for, but it wasn’t terrible by any means,” Hagen said.
Molly Wetsch
Michelle Thomson, CEO of the Black Hills & Badlands Tourism Association, said her membership has reported both wins and losses so far in 2025.
"It's been a mixed picture for the region," she said. "Some businesses are seeing softer numbers, some are even and some are up."
While hotel occupancy has fallen, higher room rates have made up for any decreases, Thomson said. And even though reservation windows have shortened as people wait longer to make travel decisions, some tourism operators are benefiting from last-minute bookings, she said.
The region around Badlands National Park saw strong tourism activity this summer, with spending there rising by 7.5% so far this year compared to 2024, Thomson said.
Rick Hustead, president of Wall Drug in Wall, said revenues at the world-famous tourist site were up 2.5% in July and 3.5% in August compared to last year.
"It seems like people in the United States are getting out and traveling, they’re taking vacations and shopping and eating," he said. "We're having a good season. It's not the best year ever, but our numbers are hanging in there very solidly."
Optimism for fall 2025 and 2026
Hagen is confident of a strong fall “shoulder season” that includes the 60th anniversary of the Custer State Park Buffalo Roundup and the upcoming pheasant hunting season, which Hagen said could set records.
He's also buoyed by recent national survey data showing that 92% of U.S. travelers said they are planning domestic trips in the coming year. As a state with a strong dose of “Americana,” South Dakota will benefit in 2026 from the nation’s 250th anniversary celebration, which also includes fireworks at Mount Rushmore National Memorial on July 3, Hagen said.
Molly Wetsch
“One thing we have to keep in mind is that value is king, and people are looking for deals and destinations that are affordable and easier on the checkbook,” he said. “They’re seeking a ton of outdoor, family-friendly options, and South Dakota has those in spades.”
Schmidt, the Experience Sioux Falls CEO, spent several days in late August courting a large national association that is considering holding a convention in the city next year. So far, she said, "they're loving what they're seeing" during their first-ever tour of eastern South Dakota.
"All we can do is keep our chins up and keep believing in the product we’re selling, knowing that we’re good people and when people choose to travel, they will choose us," Schmidt said.
Maintaining such an optimistic outlook is critical to survival for those in the tourism industry, including for Clint Jones, the co-owner at Fort Hays.
“We’ll be here next year, and we’ll live to fight another day,” he said. “After a bad year, all you can do is pick up the pieces and move on.”
This story was produced by South Dakota News Watch, an independent, nonprofit organization. Read more stories and donate at sdnewswatch.org and sign up for an email to get stories when they're published. Contact Bart Pfankuch at bart.pfankuch@sdnewswatch.org.
