Tourism is a cornerstone of South Dakota's economy, offering a unique opportunity to spread its benefits across communities statewide. In 2024, the state welcomed 14.9 million visitors, who spent a record $5.09 billion—a 2.8% increase from the previous year. This spending supported 58,824 jobs, providing $2.2 billion in income to South Dakota families. Additionally, tourism generated $399 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.
Destination Development Program one-sheeter
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 from a project implementation subject-matter expert to ensure a successful project implementation.
- Access to Travel South Dakota marketing opportunities.
Applicants must provide a financial match or 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 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:
Application Steps
How to Apply
- Review the Application Toolkit In the Destination Development Toolkit Resources Dropbox folder for guidance.
- Form a Core Destination Team and designate a Destination Coordinator.
- Complete the online application form and submit by the Friday, August 29, 2025 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 informational webinar to learn about program requirements, expectations, and how to apply. You can also review and print the deck from the webinar.
- 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.
- Complete and submit the application
Fill out the online form, upload supporting materials, and submit by August 29, 2025 (application window opens August 4, 2025).
NOTE: Two communities/destinations will be selected for the 2025 pilot cohort.
Be sure to review our Application Toolkit for additional guidance, templates, and resources to support a strong, complete application:
2025-2026 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 and Survey: January — February 2025- Webinar: Tuesday, July 8, 2025 - webinar recording and webinar deck
- Applications Open: Monday, August 4, 2025
- Application Deadline: Friday, August 29, 2025
- Selected Participants Notified: Wednesday, September 10, 2025
- Project Planning: September — December 2025
- Project Implementation: January — November 2026
- Project Close & Reporting: December 2026
FOR INFORMATION
For more information, please contact Ciara Forest, Destination Development Manager & Industry Liaison, at 605-773-3301 or [email protected].