High gas prices not expected to slow down South Dakota tourism industry in 2022

Although gas costs have hit an all-time excessive, state officers and enterprise operators within the South Dakota tourism trade stay optimistic that the summer season of 2022 can be one other record-setting season for guests and revenues.

Tourism trade specialists say the post-COVID need to journey, South Dakota’s vast number of vacationer points of interest and a popularity for excellent hospitality have overridden customer considerations over excessive gasoline costs, a minimum of to date in 2022.

Fuel costs have been on a gradual rise in current months, and are effectively above what drivers paid for gas final 12 months.

On Might 19, 2022 the nationwide common value of normal unleaded gasoline was $4.59 per gallon, in keeping with the American Car Affiliation. The South Dakota common was $4.20 per gallon, AAA mentioned, and all 50 states had a median value over $4 per gallon on that date.

For comparability, the nationwide common value on Might 19, 2021, was $2.90 per gallon of unleaded.

Deb Schuetzle, operator of the Hitching Horse Inn in Pierre, credit South Dakota’s welcoming popularity as an enormous purpose the state stays a well-liked vacationer vacation spot even throughout a time of hovering gas costs.

“We actually thought that possibly our gasoline costs could have an effect on our tourism season, however up to now, it has not,” mentioned Schuetzle.

The Hitching Horse Inn has routinely been full this 12 months and has needed to flip some individuals away, Schuetzle mentioned.

Tourism is among the many state’s largest industries, and plenty of South Dakota cities and residents depend on customer spending to keep up a thriving economic system.

In its 2021 Financial Influence Report, the South Dakota Division of Tourism mentioned 13.5 million individuals visited the state that 12 months. These guests spent an estimated $4.4 billion in 2021, a rise of 30% over 2020.

The trade generated $354 million in state and native gross sales taxes in 2021. Customer spending represents 5.1% of South Dakota’s economic system and helps one in each 17 jobs within the state.

“Tourism in South Dakota is a job-creating, revenue-generating trade that performs a significant position in supporting the state’s economic system 12 months after 12 months,” Katlyn Svendsen, spokeswoman for the South Dakota Division of Tourism, wrote to Information Watch in an electronic mail.

Key branches of the tourism trade embrace lodging, retail procuring and meals and beverage gross sales. With gas costs nearly a greenback larger per gallon than in 2021, transportation could play a much bigger position within the selections vacationers make in 2022 however shouldn’t be anticipated to lead to a serious drop in visits or revenues, Svendsen mentioned.

“We might even see shorter journeys, much less cash being spent on meals, beverage, souvenirs, and many others. [But] we stay assured,” Svendsen wrote.

Teri Schmidt, govt director of Expertise Sioux Falls, which goals to draw guests to the Sioux Falls space, mentioned gasoline costs don’t seem like a serious deterrent to visits to the area to date.

“Our customer information requests are up, the curiosity in Sioux Falls, the calls that we’re getting … these are all up. If these are any indication, we must always have a very good summer season once more,” mentioned Schmidt.

Svendsen added that within the first quarter of 2022, the state was already outpacing 2019 guests counts by 18%. She added that Arrivalist, a cellular geolocation monitoring firm, confirmed that South Dakota had the very best leap in in a single day stays to date this 12 months, with an 11% enhance in comparison with 2019.

Whereas the excessive gasoline costs are making journey dearer, many guests are persevering with to make trip plans.

The excessive value of petrol didn’t dissuade Duane Johnson and his spouse Trish from taking an extended driving trip this month. The retired couple from Wisconsin stopped to gas up in Fast Metropolis on Might 17 on their method house after visiting their daughter in Salt Lake Metropolis.

In Fast Metropolis, they paid $4.48 a gallon for mid-grade unleaded gasoline. Unleaded value them $4.80 a gallon in Salt Lake Metropolis, Johnson mentioned.

“How about that? Nearly $100 to replenish,” mentioned Johnson.

Johnson mentioned the couple mentioned the price of gasoline earlier than embarking on their trip, however determined the will to go to their daughter overrode their concern over gas prices.

“The gasoline costs do have an effect on us, however they haven’t stopped us,” he mentioned.

Johnson mentioned the couple’s wanderlust will preserve them on the street this summer season, with journeys deliberate to Montana and once more to Salt Lake Metropolis. But when gasoline goes to $6 a gallon or larger, Johnson mentioned the pair will possible fly reasonably than drive, or maybe reduce on journey altogether.

In accordance with 2022 gas costs outlook printed by Gasbuddy, a web site that predicts and publishes gas costs on-line, drivers could save a bit of on the pump all through the summer season months. The expected charge for Might averaged $4.25 per gallon with June falling to $4.21, July at $4.18, and $4.23 in August.

— This text was produced by South Dakota Information Watch, a non-profit journalism group positioned on-line at SDNewsWatch.org.