South Dakota’s tourism industry is heading into the 2026 travel season with a paradox in mind: officials say high gas prices may still help drive visitors, even as they also worry about how much household budgets can absorb. Tourism Secretary Jim Hagen described the state as a road-trip destination that fits a pattern he said is emerging in national travel surveys, with Americans leaning toward trips closer to home.
Hagen made that case in an interview with South Dakota’s News Watch, using the experience of a family vacation in the Black Hills as a road-trip example. Ryan Foley, speaking after a trip that included a helicopter flight in Keystone with his wife, Alexis, and daughters Amelia and Mabel, said the added cost of fuel did not change the plan for their family weeklong visit in late April.
Foley described the trip as an alternative to their usual spring habit of flying to a beach destination, largely because their 15-year-old dog, Doc Holliday, could not be left at a kennel. He said they chose the Black Hills because it offered a drivable range of sights and experiences, and he said the family felt they “received good value for our dollar.” Foley added that the most important part was being together and making memories.
Hagen said the state’s travel industry could “benefit from higher gas prices” by capturing demand from travelers who shift from air trips or longer road trips to regional drives. In his remarks, Hagen said South Dakota had outperformed other states when gas prices were high or rising in previous years, and he tied the expectation to national surveys he referenced suggesting that 90% of Americans said they will travel this summer despite higher costs.
He said many travelers are considering driving to a destination rather than flying and are looking for trips nearer home. “They want to travel regionally, and they’re opting for that over more expensive, long-haul air travel trips or more expensive, longer road trips,” Hagen said, adding that the “silver lining” for South Dakota is that it is “seen as a regional-drive market” and is “the ultimate road trip destination.”
Beyond fuel and consumer sentiment, Hagen and other tourism leaders pointed to a broader slate of 2026 events. The state is planning a statewide celebration of the 250th anniversary of the signing of the Declaration of Independence, which is also known as the country’s semiquincentennial. Rapid City is staging the “Real America Birthday Bash” in downtown July 1-4, with the U.S. Air Force Academy band scheduled to play July 1, drone shows planned for July 2-3, and events including a parade and fireworks.
In the Black Hills, tourism leaders said they are expecting visitors to show up for Independence Day activities and for the Sturgis Motorcycle Rally, scheduled for Aug. 7-16. Keystone clothing store owner Bria Dillavou said the 250th anniversary and the fireworks are aimed at producing “a good season,” and she said she’s been hearing from tourists from the East who stop in Sioux Falls and the Black Hills on their way farther west, including Yellowstone National Park.
As operators plan around those peak moments, they also described operational uncertainty coming from the national economy and costs. Dillavou said she keeps an eye on what she sees as rising patriotic retail demand and that vendors nationwide have been offering more patriotic gear and souvenirs this year. On the booking side, she and other tourism leaders said people remain willing to take family trips if they can drive, even if they are still weighing value.
Outside the Black Hills, Experience Sioux Falls CEO Teri Schmidt said eastern South Dakota is increasingly viewed as a regional draw for visitors who want options for shopping and dining. She pointed to annual events such as the Rock the Country Music Festival in late June and the Sioux Falls Airshow and Hot Summer Nites car show in July, and she said marketing efforts are reaching beyond neighboring states toward the national market.
Schmidt said the worries for tourism officials include gas prices, airline prices, and the overall condition of the country’s economy. “The things that worry us are gas prices, airline prices and the overall economic condition of the country,” she said, adding that if gas prices rose sharply, it could change what people do and how the season unfolds.
Schmidt said tightening consumer budgets could reduce visits or spending, with early months of 2026 described as flat or only slightly up for visits and tourism spending. She said the outlook means tourism businesses may feel additional pressure to land a strong summer to return revenues into the black, while also stating that Sioux Falls and South Dakota offer “very good value for the tourism dollar,” which she said can help during a more challenging economy.
Michelle Thomson, CEO of the Black Hills & Badlands Tourism Association, said higher costs of living and rising fuel prices could push more visitors toward spring and fall travel, when some expect prices to be lower. She also said travelers can be more indecisive and delay reservations, which can add stress for tourism operators that prefer bookings to fill farther in advance.
Thomson said Rapid City and the Black Hills should see a strong year for revenue, driven by events including the Sturgis rally and the nation’s 250th birthday. “With the 250th, we have the potential to bring in people from across the country because we have such a patriotic experience here, and that’s not just the fireworks,” she said, and she added that national research suggests potential visitors understand the price of a vacation is rising without being overly concerned.
In her account, Thomson said researchers show people are anticipating spending more but still want the experiences and are willing to pay additional costs, a stance she said could help cushion tourism if fuel prices keep households under strain.
This article was originally published by South Dakota News Watch and distributed through a partnership with The Associated Press.