Tourism is a Reminder of Why Policies Matter
By Rep. Dusty Johnson
April 8, 2022
Travel is coming back. After nearly two years of pleas, Speaker Pelosi finally reopened the Capitol building to visitors and tours. South Dakotans wasted no time in coming to their nation’s capital. This week, I had the opportunity to meet with members of the South Dakota Department of Tourism, including their Secretary Jim Hagen.
Fortunately, South Dakota policies throughout the pandemic have offered our tourism industry an easier bounce-back than many other states and communities. But the tourism industry across America is still hurting.
Policies like extended shutdowns, mask mandates, restaurant closures, capacity limits, vaccine mandates, and international travel restrictions, have cost the travel industry more than $755 billion over the past two years.
States like California, who implemented prolonged strict COVID-19 policies, have seen the toll it can take on the industry. Tourism spending in California during 2021 dropped to 67.2% of the 2019 amount. The last time it was this low was 2010. In 2021, the number of visitors to New York City was 32.9 million, down from 66.7 million in 2019—nearly a 50% decrease. Comparatively, in Florida—a state famous for low COVID-19 restrictions—the number of 2021 visitors were only down 9% from 2019 numbers.
In 2021, there were one million fewer visitors in South Dakota than the 2019 numbers – that’s a small decrease of 6.9%. Visitor spending and GDP of the South Dakota tourism industry throughout 2021 has even outpaced 2019 levels. It’s not perfect though, our hospitality industry is facing a workforce shortage – too many open jobs, not enough people. Without the tourism industry, each South Dakota household would pay an additional $980 in taxes. A thriving tourism industry is beneficial for all South Dakotans, not just those with skin in the game.
While everyone took a hit at the start of the pandemic, the COVID-19 policies put into effect thereafter made all the difference when it comes to the reopening of economies. Policies matter, and the COVID-19 responses between states is a clear way to see the impact state and local economies have on our lives. Common-sense policies protect and create jobs – they allow businesses to thrive on their own. Federalism works.