Tourism is a cornerstone of South Dakota's economy, offering a unique opportunity to spread its benefits across communities statewide. In 2025, the state welcomed 14.97 million visitors, who spent a record $5.16 billion—a 1.1% increase from the previous year. This spending supported 59,145 jobs, providing $2.3 billion in income to South Dakota families. Additionally, tourism generated $406.1 million in state and local tax revenue, reducing the tax burden on residents.
As travel preferences evolve, today’s visitors increasingly seek meaningful connections that immerse them in local culture, traditions, and natural landscapes. This growing demand for authentic experiences presents a valuable opportunity for rural South Dakota to collaborate and develop strategies that tap into this trend, bolstering the state’s tourism offerings.
About
The Destination Development Program helps rural communities and businesses grow, manage, and promote tourism in ways that reflect what makes each place special. By offering tourism product planning support, seed funding for the implementation of priority project ideas, expert guidance, and learning opportunities, the program supports local leaders and entrepreneurs as they create new and authentic tourism experiences that benefit both visitors and residents.
PROGRAM BENEFITS ELIGIBILITY & PROJECTS APPLICATION STEPS TIMELINE FAQS CONTACT
Program Benefits
This program will provide selected communities and businesses with both tourism product planning and funding support:
- Expert guidance on crafting a community-driven product development strategy and prioritizing 1-2 product development concepts.
- Training on working together to manage tourism in a responsible way.
- Up to $15,000 in seed funding and up to 100 hours of technical assistance for priority project implementation subject-matter expert to ensure a successful project implementation.
Applicants must provide an in-kind match (e.g., staff time, meeting space, marketing support, or donated services).
Eligibility & Projects
Who is this program for?
Applications are welcome from individual communities or multiple communities collaborating on a regional project. Two communities will be selected.
- Rural communities with populations under 30,000
- Areas with untapped tourism potential or those needing revitalization
- Eligible applicants:
- Local or Regional Governments
- Destination Marketing Organizations / Convention and Visitor Bureaus
- Chambers of Commerce
- Tourism Business Owners / Operators (lodging, retail, guide services/adventures/outfitters, dining, arts/museums)
- Tribal Governments & Organizations
- Nonprofit Organizations
What types of projects are eligible?
Here are some example projects that fit the program’s timeline, scope, and funding amount. Creative and original ideas are strongly encouraged!
- New tours, trails, or self-guided itineraries
- Downtown beautification or gathering spaces
- Wayfinding signage
- Visitor information displays or storytelling tools
- Interpretive materials and maps
- Accessibility upgrades
- Trail or infrastructure feasibility studies
Review the Application Toolkit for a full list of identified possibilities:
Destination Development Toolkit Resources - coming soon, please check back in May
Application Steps
How to Apply
- Review the Application Toolkit In the Destination Development Toolkit Resources Dropbox folder for guidance. (Toolkit coming soon. Check back in May.)
- Form a Core Destination Team and designate a Destination Coordinator.
- Complete the online application form and submit by the Tuesday, June 30, 2026 deadline.
The following are the required steps for preparing your application:
- Confirm eligibility and watch the launch webinar
Check that your community qualifies and watch the recording of the May 19 Insider Session to learn about program requirements, expectations, and how to apply.
- Build a coalition and form your Destination Core Team (DCT)
Bring together local leaders and organizations who will guide the process, contribute expertise and resources, and demonstrate broad community support.
- Assign roles and responsibilities
Identify a Destination Coordinator from the DCT to lead the application process, coordinate locally, and collect required materials such as letters of support and match documentation.
- Secure letters of support and match commitments
Gather letters from diverse local and regional partners and confirm financial or in-kind match contributions (e.g., meeting space, staff time).
- Brainstorm initial tourism product ideas
While a final project idea is not required at the application stage, early discussions will help position your team for success during the planning phase. Please note that the planning phase includes community surveys and workshops to get resident input into the project.
- Complete and submit the application
Fill out the online form, upload supporting materials, and submit by June 30, 2026 (application window opens May 20, 2026).
NOTE: Two communities/destinations will be selected for the 2026 program.
Be sure to review our Application Toolkit for additional guidance, templates, and resources to support a strong, complete application:
Destination Development Toolkit Resources - coming soon, check back in May
2026-2027 Timeline
To stay informed and ensure you don’t miss any updates, please take note of these key dates, and stay tuned to our Travel South Dakota industry emails:
- Industry Announcement: April 16, 2026
- Insider Session (informational webinar): Tuesday, May 19, 2026
- Applications Open Online: Wednesday, May 20, 2026
- Application Deadline: Tuesday, June 30, 2026
- Selected Participants Notified: mid-July 2026
- Project Planning: August 2026 — January 2027
- Project Implementation: February — December 2027
- Project Close & Reporting: January — April 2028
FOR INFORMATION
For more information, please contact Ciara Forest, Destination Development Manager & Industry Liaison, at 605-773-3301 or [email protected].