2021 Annual Report

FORWARD TOGETHER ANNUAL REPORT

FY2021

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

1

MISSION

As a private, nonprofit organization, our mission is to serve as a unifying force to increase visitor numbers, trip duration and visitor sales for the economic benefit of our members and the communities we serve.

1

ANNUAL REPORT FY2021

Tourism had an exceptional year in 2021. We saw record-breaking visitation and the tourism index, which represents the impact of tourism on the region, showed unprecedented yearover-year growth.

After navigating the uncertainty of 2020, we had more insight into the possibilities of 2021.

BH&B worked tirelessly on your behalf to maintain the Black Hills and Badlands as the ultimate destination and position the region’s tourism industry for success as we prepared to welcome travelers eager to explore again.

Throughout this annual report, you will see how BH&B’s multi-faceted marketing initiatives drove a resurgence in travel and helped tourism businesses across the region recover from 2020’s challenges.

These accomplishments are the result of our collective hard work. Each of you —the regional chambers of commerce, DMOs, attractions, lodging establishments, tour operators, restaurants and the individuals who make up the visitor industry — accelerated this success.

You went the extra mile, and it did not go unnoticed. Your steadfast commitment had a profound impact on the visitor economy in our region, and together we emerged stronger.

We look forward to continuing to move forward together in 2022 and beyond.

MICHELLE THOMSON President & CEO

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

2

2021 LEADERSHIP Wow, 2021 has been fun. Is everyone else tired? I am so truly impressed with everyone within the tourism community. I genuinely believe that we work in the single most incredible industry in South Dakota and the entire world. From the smallest roadside attraction to the largest campground, everyone helped one another by cross-promoting each other.

Everyone I have talked to said that 2021 was their most successful year in a very long time, if not ever!

Thanks to OUR Black Hills and Badlands Tourism Association, we told the world that the Black Hills were open and welcoming visitors. They helped build itineraries and social media posts about what visitors could see or do while in the area. BH&B continues to promote to potential visitors across the nation how incredible you are and how you will help them create memories for a lifetime.

It has been a wonderful time being your Board Chair for a second year, and although my motion to be named the permanent Lord of Tourism fell through, I am looking forward to what 2022 will bring to each of us. I am excited for what the future holds as we grow and prosper as an industry and a region.

I recommend that each of you continue to reach out to OUR Black Hills and Badlands Tourism Association to look at all of the different marketing programs and continue to springboard off what 2021 provided us and ensure this upward momentum continues.

I wish all of you continued success as we roll into another wonderful year.

PRESSTON GABEL Board Chair

The Board of Directors plays an important role in the success of the organization. The board represents diverse members throughout the industry and community and provides strategic oversight, guidance and influence to support our mission.

OFFICERS

Presston Gabel The Mammoth Site of Hot Springs CHAIR Ed Miller Rush No More RV Resort VICE CHAIR Toni Woodruff Sturgis Buffalo Chip TREASURER Amber Galbraith Executive Lodging of the Black Hills PAST CHAIR

BOARD OF DIRECTORS COMMUNITY REPRESENTATIVES Amanda Kille Deadwood Chamber of Commerce & Visitors Bureau Dawn Murray Custer Area Chamber of Commerce Greg Miller Murdo Area Chamber of Commerce Ivan Sorbel Pine Ridge Area Chamber of Commerce Jacqueline Wyatt Sundance Chamber of Commerce Janet Wetovick-Bily Hill City Area Chamber of Commerce Jean Maher City of Belle Fourche Jen Bradley Mitchell Convention & Visitors Bureau Jennifer Suter Lemmon Area Chamber of Commerce Julie Schmitz Jensen Visit Rapid City Kelsey Clark Wall-Badlands Area Chamber of Commerce Mistie Caldwell Visit Spearfish Olivia Mears Hot Springs Chamber of Commerce Robin Pladson Keystone Chamber of Commerce Sandra Eschenbacher City of Kadoka Sierra Ward Lead Chamber of Commerce Veronica Grosek Sturgis Chamber of Commerce AT-LARGE Carrie Gerlach Black Hills Adventure Tours Gwyn Wathen RAC Marketing Jackie Kusser Wall Drug Store Wade Lampert Best Western Ramkota ATTRACTIONS Cameron Fullerton Rushmore Tramway Adventures Clint Jones Fort Hays Old West Town & Dinner Show Jeff Oldham Reptile Gardens TRADE ASSOCIATIONS Debbie Speas Mount Rushmore Society Jennifer Womack Devils Tower Country Lyndy Ireland B&B Innkeepers of South Dakota NON-VOTING LIAISONS John Brockelsby Governor’s Tourism Advisory Board Susan Johnson Black Hills Vacations Jacey Ellsworth South Dakota Department of Tourism

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ANNUAL REPORT FY2021

STAFF The BH&B team supports the region’s travel industry by working with partners to effectively contribute to, increase and sustain a vibrant visitor economy for the Black Hills and Badlands.

MICHELLE THOMSON

President & CEO

GREG VALLADOLID

Vice President of Marketing

LEIRA JANKLOW

Vice President of Sales

ARA BAUMSTARCK

Vice President of Operations

LOIS PETERSON

HAYLI HULL

Administrative Assistant

Regional Sales Director

COLETTE KUHFELD

Rapid City, the Badlands and I-90 East, Lemmon, Custer & Pine Ridge Indian Reservation

Art Director

MORGAN HUBERT

Communications Director

CINDY MILLETT

Regional Sales Director Northern and Southern Black Hills & Eastern Wyoming

CYDNEY ARELLANO

Web & Digital Media Manager

SKIP STANEC

ALYSSA ERMISH

Marketing & Logistics Project Manager

VIC Building Manager

RITA FRANTZ

INFORMATION HOSTS

Alta Hanson Grace Payton Jessica Underwood

VIC Supervisor

OLIVIA DERREK

Intern

KEVIN SUKRAW

Literature Distribution

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

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TOURISM INDUSTRY IMPACT IN THE BLACK HILLS & BADLANDS +22.81%

TOURISM INDEX

$509.95M

4.8M

TAXABLE SALES

NATIONAL PARK VISITS

+31.6%

+26.9%

$1.44B

55.67%

DEADWOOD GAMING HANDLE

HOTEL OCCUPANCY

+34.3%

+21.4%

Sept. 2020 to Aug. 2021 *Numbers for Sept. 2021 not available at time of print

MEMBERSHIP MEMBERS Our membership programs empower local businesses to leverage BH&B’s innovative marketing platforms, programs and opportunities to help them grow their business and connect with millions of annual visitors.

414 MEMBERS

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NEW MEMBERS

CORPORATE PARTNERS Our Corporate Partners’ commitment to the Black Hills and Badlands visitor industry helps fund BH&B’s boardapproved strategic marketing campaigns.

Their support is essential to maintaining our success and ensuring that the Black Hills and Badlands remains the ultimate destination for travelers.

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ANNUAL REPORT FY2021

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CORPORATE PARTNERS

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NEW CORPORATE PARTNERS

PRINT

SOUTH DAKOTA VACATION GUIDE

BLACK HILLS & BADLANDS VACATION GUIDE

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200K

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PRINT COPIES

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OFF-ROAD ADVENTURES GUIDE

113

PARTNERS

• Fall Event Calendar • Fourth of July Events Calendar

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

6

BLACKHILLSBADLANDS.COM BlackHillsBadlands.com is BH&B’s call-to-action. All of BH&B’s marketing efforts — advertising, publications, co-ops, social media — drive to BlackHillsBadlands.com.

As the official online source for regional tourism information, well over 1 million annual users discover the promise of a trip to the Black Hills and Badlands region here, and they decide to experience it for themselves.

TOP 3 PAGES 1

MAPS

2

COUPONS

3

CUSTER STATE PARK

TRAVEL BLOG 318.3K ARTICLE VIEWS

3:54

AVG TIME ON ARTICLE

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LISTING VIEWS

6.7M

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IMPRESSIONS

58K

CLICKS

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ANNUAL REPORT FY2021

25K+

PARTNER LEADS

9.3K

COUPON INTERACTIONS

TRAVEL TRADE

These initiatives target key decision makers in the group tour industry, promoting international and domestic travel to the region.

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+ DIGITAL REACH

1K

PAGEVIEWS

22

PARTNERS

CO-OP PROGRAMS 65

• Postcard Blitz

PARTNERS

• Group Tour Profile Sheet

280+

• International Profile Sheet

REACH

Group Tour Magazine • Select Traveler • Group Travel Leader • Leisure Group Travel • Brand USA Inspiration Guide • Great American West Guide

TRADE SHOWS National Tour Association Virtual Travel Exchange // American Bus Association Marketplace OnDemand // Virtual Go West Summit

109

VIRTUAL APPOINTMENTS

+ SPONSORSHIP • DIRECT EMAIL • PRESENTATION

CONSUMER TRAVEL SHOWS Promoting the Black Hills and Badlands area to potential visitors at travel shows is an integral piece of our marketing strategy. It allows us to have conversations with potential visitors and answer their questions, while increasing member exposure and encouraging travel to the region. Due to the pandemic, many of the consumer travel shows were canceled in 2021.

4

SHOWS ATTENDED

459K

IMPRESSIONS

2,125

MATERIALS DISTRIBUTED

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

8

PAID ADVERTISING PEAK SEASON

SHOULDER SEASON

March through August

September through February

5.9M

5.8M

TOTAL IMPRESSIONS

TOTAL IMPRESSIONS

140K

52K

TOTAL ENGAGEMENT

TOTAL ENGAGEMENT

TARGET MARKETS

MEDIA MIX Search • Print • Direct Mail • Display • Social •Audio • Video

CAMPAIGN CREATIVE EXAMPLES

Print

Email

CARES ACT RECOVERY BH&B received federal CARES Act funds through the state’s DMO Marketing Assistance Program.

This program aimed to assist the tourism industry through entities responsible for actively marketing cities or regions to visitors.

Direct Mail

29.5M

IMPRESSIONS

194K

ENGAGEMENTS

BH&B allocated the funds with over 16 vendors from local, regional and national providers in November and December 2020. Due to the public health emergency, BH&B directly applied the funds to the resumption of activities and steps taken to ensure a safe experience.

Partners

9

ANNUAL REPORT FY2021

SDT PARTNERSHIP

BH&B invested $185,000 in 2021 in a co-op marketing program with the South Dakota Department of Tourism (SDT). This doubles our advertising dollars and leverages the state’s brand and resources. Our partnership extends the reach of our messaging and diversifies our audiences through a mix of traditional and digital marketing channels.

PEAK SEASON

SHOULDER SEASON

(March through August)

(September through February)

39.9M

12.7M

1.5M

582K

TOTAL IMPRESSIONS

TOTAL ENGAGEMENT

TARGET MARKETS

MEDIA MIX Search • Print • Direct Mail • Display • Social •Audio • Video

TOTAL IMPRESSIONS

TOTAL ENGAGEMENT

CAMPAIGN CREATIVE EXAMPLES

Interactive TV

Direct Mail

Print

Facebook Instant Experience

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

10

INDUSTRY SUPPORT • Distribution Week • Member Visits • Literature Swap • Annual Meeting • Opening & Closing Dates Calendars • VIP Card Program

11

ANNUAL REPORT FY2021

MICROBYTES

DISTRIBUTION

Industry Newsletter

28.55%

OPEN RATE

12.02%

CLICK-TO-OPEN RATE

15,969+

MILES DRIVEN

BLACK HILLS VISITOR INFORMATION CENTER

⭐⭐⭐⭐⭐

BY THE NUMBERS

The two ladies working the Visitor Center were so kind and helpful! We were looking for some advice on local attractions, and a great place for breakfast. They delivered on both counts. Thank you!

30,066

$278,063K

VISITORS

GIFT SHOP SALES

16,289

80

OHV PERMITS

MICKELSON TRAIL PASSES

369

STATE PARK PASSES

⭐⭐⭐⭐⭐

Staff was extremely helpful and friendly.

We got all of our questions answered.

TOP REGISTERED STATES

3

1

2 5

7

9

6

10

⭐⭐⭐⭐⭐

I tell you. These ladies are awesome...They will explain to you everything you need to know when you ride in the Black Hills.

Been going there every year to grab my off road permits.

4 8

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

12

FY2022 PROPOSED EXPENSES ADMINISTRATIVE EXPENSES Accounting Bad Debts Collection Expenses Bank Charges Credit Card Processing Fees Dues – Association Memberships Health Insurance Retirement – Employer Matching Insurance – Prop/Liab/Work Comp Interest Paid Office Equipment – Maintenance & Rent Mileage & Travel – Administration Software Licensing & Consulting Staff Training & Seminars Postage Staff Bonuses Service Contracts Subscriptions Office Supplies Uniforms Taxes – Payroll Telephone Utilities BH&B Salaries Sales Commissions Vehicle Operation & Maintenance Maintenance Corporate Income Tax Payments

$11,350 $1,500 $200 $450 $1,500 $1,500 $69,775 $17,199 $18,000 $25 $8,000 $200 $4,500 $10,000 $6,768 $20,045 $5,500 $100 $8,000 $250 $46,000 $9,500 $9,450 $575,000 $20,000 $3,000 $10,000 $2,500

TOTAL ADMINISTRATIVE EXPENSES

$860,312

MEMBERSHIP MARKETING SERVICES EXPENSES Annual Report Board/Committee Meetings Member Identity Mileage – Member Services Travel – Member Services Member Referral Program Governmental Relations Member Events Spring Literature Swap TOTAL MEMBERSHIP MARKETING SERVICES EXPENSES

ANNUAL REPORT FY2021

$21,250

MARKETING SERVICES EXPENSES Out-of-Region Marketing BH&B Matching Dollar Grants Publications – Black Hills Road Maps Publications – SDVG Publications – BHBVG OHV Guide Website Hostings Travel Expenses – Marketing Marketing Mailing & Distribution Expenses Marketing Supplies Self Promotion

$409,168 $25,000 $33,437 $118,710 $98,234 $4,500 $10,000 $1,000 $200 $17,500 $3,000 $3,000

TOTAL MARKETING SERVICES EXPENSES

$723,749

BHVIC EXPENSES TOTAL BHVIC EXPENSES

TOTAL EXPENSES $2,119,620 TOTAL REVENUE $2,119,620 = $0

13

$800 $250 $2,200 $1,000 $2,000 $500 $2,500 $7,000 $5,000

$514,309

PROPOSED REVENUE BH&B REVENUE Corporate Partners Chamber/Trade Memberships Memberships SD VG Listing Options SD VG Display Advertising SD VG City Pages Advertising Off-Road Guide BHB VG Display Advertising BHB VG Listing Options Digital Marketing Spring Literature Swap State Contract Black Hills Road Maps Interest Income Co-op Partnerships Sponsorships Annual Meeting

$20,827 $32,000 $434,634 $73,745 $295,000 $71,723 $28,150 $152,468 $57,220 $112,675 $5,900 $80,000 $60,162 $100 $145,090 $30,500 $6,500

TOTAL BH&B REVENUE

$1,606,694

BHVIC REVENUE Gift Shop Sales Licenses & Stamps Coupon Books Brochure Slots Display Panels Flat Panel TV Ads Poster Flip Panels Digital Information Panel Community/Chamber Member Package Sales Tax Collected TOTAL BHVIC REVENUE

$65,000 $380,000 $100 $17,450 $23,836 $1,500 $2,840 $7,950 $8,750 $5,500 $512,926

21.3% 23%

GIFT SHOP $445,100

3.8% STATE CONTRACT $80,000

MEMBERSHIP

$2,119,620

TOTAL REVENUE

$487,461

52% MARKETING PRODUCTS $1,101,559

BLACK HILLS & BADLANDS TOURISM ASSOCIATION

14

BlackHillsBadlands.com

1851 Discovery Circle, Rapid City, SD 57701 // 605-355-3600

15

ANNUAL REPORT FY2021