May 26, 2025

If there’s a bright spot already for the 2025 travel season, it’s along the Big Sioux River in downtown Sioux Falls — where the Canopy by Hilton has been filling up with guests since opening late last year.

“The response continues to be amazing,” said Jennifer Seifert-Brenna, vice president of hospitality for developer and operator Lloyd Cos.

“We are seeing a large number of couples both locally and regionally coming for staycations. Corporate group business and conferences have been overwhelmingly strong, and we have hosted several large and small weddings.”

The hope is that summer will bring even more reasons to visit, from free concerts at the adjacent Levitt at the Falls to new patios at The Steel District’s restaurants.

The development is designed for guests to “book a room, park their car and explore all of downtown,” Seifert-Brenna said.

Additionally, corporate group and conference business “has been stronger than expected,” she added. “We are seeing a lot of events rebooking for 2026 (and) conferences, meetings and social events continue to book at an accelerated pace and for as far out as 2028.”

Add in last-minute bookings for small and medium-sized events and the team is staying busy, she said.

“We are finding that once people are here to experience the space, the neighborhood and the elevated services and offerings, that they want to come back and tell others about The Steel District, hotel and restaurants,” Seifert-Brenna said.

While that success story seemingly unfolds, however, the start to this year was fairly lackluster for the overall tourism sector.

According to the city’s most recent financial report, the lodging tax dropped for the second consecutive month, down 5 percent year over year in April.

Citywide, “it’s kind of quiet,” said Teri Schmidt, CEO of Experience Sioux Falls. “Everyone is feeling uncertainty from people, but it’s a wait-and-see situation.”

The data reflects that but also shows opportunities, said Jim Hagen, secretary of the South Dakota Department of Tourism.

“The American people are a little anxious and a little cautious about travel and spending right now,” he said. “Travelers are feeling a little uneasy.”

But, according to a recent survey from industry research firm Future Partners, 35 percent of Americans still consider spending money on travel to be essential, and 53 percent said even if there were a recession they would consider travel a worthwhile investment.

Eighty-four percent said they expect to travel the same or more in the next 12 months. That desire to travel combined with shifting to less-expensive destinations bodes well for South Dakota, Hagen said.

Plus, gas prices aren’t prohibitive, and while the stock market has been volatile, the economy’s fundamentals are strong, he added.

“South Dakota has always done really well in those environments, and I know that’s going to be the case this summer,” he said.

Even during the pandemic, when few were traveling, “Sioux Falls did very well because regionally they would come in two or three days and enjoy the community,” Schmidt said. “If it gets tough enough that people do stop taking two-week vacations, we’re positioning ourselves so they still feel like going to Sioux Falls for an event or to shop or dine for two or three days.”

Hagen advises businesses to pay attention to their online reviews, which travelers are using to make decisions as much as ever, and to offer guests value when possible.

“Travelers are looking for a deal. They’re looking for coupons, and they’re looking for savings, so whatever you can offer would be a really smart move,” he said. “Travelers are highly sensitive to price changes, particularly hotel rates.”

Constantly improving what the community offers is key, Schmidt added.

This season will bring the opening of Jacobson Plaza at Falls Park West, adding the city’s largest playground and splash pad along with a dog park plus an ice ribbon that will open in November and likely be used for other activities during the summer.

The Great Plains Zoo continues to build on momentum from its lion exhibit and splash pad that opened last year and is making other improvements to smaller exhibits.

Other draws for visitors are new dining options throughout downtown Sioux Falls and beyond and new sculptures, including the large one Passage being installed this month at The Steel District.

Special events that could draw visitors this year include the popular Tacos and Tequila festival returning to The Birdcage on June 14, the new Lallycooler music festival July 11-12 at Great Bear Ski Valley, the American Jump Rope Federation 2025 National Championship June 30-July 3 and the U.S. Olympic Team Trials in curling in November.

“A consultant years ago said to me what Sioux Falls does that is so smart is you’re constantly enhancing the community that keeps people coming,” Schmidt said.

The Hilton Garden Inn Downtown, which is being renovated and rebranded as The Catlin Hotel, saw a strong April and a solid pipeline of banquets business for May and June, said Dione Deuel, chief operating officer of hospitality and director of brand experience.

“We’re actually pretty optimistic for May and June, and typically with banquet events, the rooms come with it,” she said, while adding: “It’s not last year. We’re not seeing the same type of travel trends.”

For business travel, the limitations of the Sioux Falls Convention Center are creating challenges, Schmidt said.

“For us to go out and bring in a large convention, the dates are either full or we don’t have enough hotel rooms attached,” she said. “This is not a new thing, but it is totally in our face right now.”

At the Canopy by Hilton, “there are multiple conferences and meetings that have booked with us that otherwise would not have come to Sioux Falls for their event due to limited upscale-space options,” Seifert-Brenna said. “We continually hear from guests that they had such a wonderful time and they now want to bring other events to Sioux Falls. This will only increase as awareness strengthens.”

Experience Sioux Falls reported booking 117 events last year, scheduled out through 2029. Of those, 49 were new to the city, and 68 were repeat events. They’re estimated to bring a combined 43,182 people to town.

Southeast South Dakota led the state in visitor spending last year for the third consecutive year, totaling more than $2 billion and representing more than 40 percent of the statewide total, edging out the Black Hills region by less than 2 percent.

“It’s exciting to see,” Hagen said. “You look at how this region has grown over the last 10 to 15 years, and Sioux Falls in particular as a hub for sports tourism, a hub for medical tourism, conventions and meetings and the arts and culture scene, there’s just so much.”