Marcia Hultman

Cabinet Secretary

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South Dakota e-Labor Bulletin

June 2021

South Dakota Tourism Businesses Welcoming Visitors

After a challenging year for tourism-reliant businesses during the COVID-19 pandemic, South Dakota is especially thankful to be welcoming even more visitors this summer. The economic landscape is looking great for tourism this summer, with South Dakotans and out-of-state visitors alike resuming travel. Current state initiatives are underway to help tourism-related businesses find the workers they need for a thriving visitor season.

Although the industry classification used for industry employment data taxonomy (North American Industry Classification System, NAICS) doesn’t include a single, specific “tourism industry,” there are several industries directly impacted by visitor numbers and spending. This article highlights those industries, their recent employment trends and some of the nuances of classifying businesses within those industries. We also look at the types of occupations their businesses require to operate successfully, current job opportunities and the types of skills and abilities most needed in the occupations.

The NAICS industry subsectors whose employment trends are most impacted by tourism are listed below, in order of the significance of the impact the tourist season has on their worker levels. Select any of the industry titles to learn more about the nature of the industry, its seasonal and longer-term employment trends, occupations found there, current job opportunities and skills required for those jobs.

Accommodations

Establishments in the Accommodations subsector (NAICS 721) provide lodging or short-term accommodations for travelers, vacationers and others. A full range of lodging types are included, from hotels, casino hotels, and bed and breakfast inns to housekeeping cabins, lodges and recreational vehicle (RV) parks.

Employment in these Accommodations facilities begins increasing for the tourism season between April to May and continues rising into August. Monthly data for 2015 to 2019 (from the Quarterly Census of Employment and Wages) indicates an average of 2,953 (36.8%) workers are added to payrolls in these facilities from April to August each year. (Data for 2020 were excluded from calculations of average seasonal change in this article because it was such an atypical year for employment trends.)

Data available from the Occupational Employment and Wage Statistics program shows occupations commonly found in the Accommodations subsector include the following.

Maids and Housekeeping Cleaners
Hotel, Motel, and Resort Desk Clerks
Waiters and Waitresses
Laundry and Dry-Cleaning Workers
Maintenance and Repair Workers, General
Lodging Managers
Bookkeeping, Accounting, and Auditing Clerks
Janitors and Cleaners, Except Maids and Housekeeping Cleaners
Landscaping and Groundskeeping Workers
Dining Room and Cafeteria Attendants and Bartender Helpers
Gambling Change Persons and Booth Cashiers

The Accommodations subsector’s employment level declined in 2020 by 1,713 workers (19.5%) to 7,084. The Traveler Accommodation industry group was responsible for most of the worker loss. More specifically, the declines were largely in hotels and motels, which reduced staffing in correlation to reduced occupancy rates while the pandemic had the greatest impact on travel. Prior to the pandemic, hotels and motels had shown stable employment levels over the past few years, either increasing or decreasing only slightly during a certain year.

Data from the virtual labor market data system shows Accommodations businesses advertised 340 job openings in May 2020 (the most recent monthly data available). Not surprisingly, a high proportion of these openings were in the Black Hills counties of Pennington, Lawrence, Butte and Meade---but there were job opportunities listed for many other areas of the state as well, including the counties of Minnehaha, Walworth, Hughes, Moody and Codington.

The most commonly advertised job skills being sought for those Accommodations job openings were:

Customer service
Clean rooms
Vacuum floors
Replenishing linens
Making beds
Attention to detail
Light cleaning duties
Preventative maintenance
Able to convey information
Issuing room keys

Food Services and Drinking Places

Although fairly self-explanatory, establishments in the Food Services and Drinking Places industry subsector (NAICS 722) prepare meals, snacks and beverages to customer order for immediate consumption either on or off the premises. Everything from fast food to full-service restaurants are included, as well as unique food service providers ranging from pizza delivery and buffets to ice cream parlors and caterers. Some provide food and drink only, while others provide various combinations of seating space, waiter/waitress services and incidental amenities, such as limited entertainment. 

Prior to the pandemic’s drastic impact on the normal spring ramp up of employment levels in this subsector, hiring for the tourism season generally started between April and May, with worker levels beginning to decline again between August and September. Using monthly data for the few years prior to 2020, worker levels in this industry grew an average of 2,723 (8.8%) each year from April to August.

The occupations with the greatest levels of employment in Food Services and Drinking Places are:

Fast Food and Counter Workers
Waiters and Waitresses
Bartenders
Cooks, Fast Food
First-Line Supervisors of Food Preparation and Serving Workers
Cooks, Restaurant
Dishwashers
Cooks, Short Order
Food Preparation Workers
Driver/Sales Workers
Food Service Managers
Dining Room and Cafeteria Attendants and Bartender Helpers
Hosts and Hostesses, Restaurant, Lounge, and Coffee Shop
Cooks, Institution and Cafeteria
Cashiers
General and Operations Managers

The Food Services and Drinking Places subsector’s employment decreased by 3,946 workers (12.4 percent) from 2019 to 27,751 in 2020. Without the pandemic and considering yearly trends, the special foods services industry group would have been expected to show employment gain, with the other two industry groups remaining largely unchanged.

May 2021 brought 983 job openings advertised online in Food Service and Drinking Places. The skills most frequently listed as important by employers posting the openings included the following.  

Customer service
Flexibility
Food preparation
Problem solving
Decision making
Positive attitude
Common sense
Time management
Achieve maximum guest satisfaction
Restaurant management

Administrative and Support Services

Businesses in the Administrative and Support Services subsector (NAICS 561) perform activities supporting the day-to-day operations (e.g., general management, personnel administration, clerical activities, cleaning activities) of other organizations found in all sectors of the economy. You may be wondering how those types of businesses are directly tied to tourism. Although a small component, the answer is Travel Arrangement and Reservation Services, which is included in this subsector. Employment in those types of businesses (ranging from travel agencies and tour operators to convention and visitors bureaus) and definitely exhibits seasonal patterns during the months when tourism is highest in South Dakota.

The number of workers in the Administrative and Support Services subsector begin increasing between February and March, with the greatest jump between April and May each year. On average from 2015-2019, employment in this subsector increased by 1,172 (10.2%) from February to June each year. It seems logical tourism-related seasonal employment growth in this subsector would be a bit earlier than in other tourism-related industries since it revolves around making plans and arrangements prior to the actual travel.

Occupations most commonly found within the tourism-related establishments in this subsector are:

Janitors and Cleaners, Except Maids and Housekeeping Cleaners
Customer Service Representatives
Landscaping and Groundskeeping Workers
Security Guards
Tree Trimmers and Pruners
Receptionists and Information Clerks
Travel Agents
Office Clerks, General

Although it is a small industry, Travel Arrangement and Reservation Services had the largest drop in this subsector’s employment, proportionately, in 2020. This is likely due to the travel restrictions in place in surrounding states and countries, as well as people in general choosing to travel less during the pandemic out of concern for their personal health. Entities affected were travel agencies, tour operators and other travel arrangement services like convention bureaus.

There were 1,255 South Dakota job openings in the Administrative and Support Services subsector advertised online in May 2021. Within those openings, the skills most widely sought after in candidates are listed below.

Flexibility
Customer service
Interpersonal skills
Work independently
Positive attitude
Verbal communication skills
Attention to detail
Problem solving
Honesty

Miscellaneous Store Retailers

Miscellaneous Store Retailers (NAICS 453) include florists, office supplies, stationery and gift stores, used merchandise stores and other miscellaneous store retailers. Examples of the types of retailers most impacted by tourism include gift and souvenir stores, antique shops, art dealers and fireworks stands.

Employment in this industry increases almost 20% from April through July, adding an average of 491 workers to payrolls to accommodate higher sales during the summer months.

The occupations most commonly found in these miscellaneous retail stores are:

Retail Salespersons
Cashiers
Stockers and Order Fillers
First-Line Supervisors of Retail Sales Workers
Floral Designers
Bookkeeping, Accounting, and Auditing Clerks
Light Truck Drivers
General and Operations Managers

For the most part, the number of Miscellaneous Store Retailers and employment within those stores has been on a gradual downward trend over the last five years, and the pandemic certainly didn’t help. This industry lost another eight establishments and 230 workers (8.9%) in 2020. The largest 2020 losses were among office supply, stationery and gift stores. The postponement or cancelation of travel plans during the pandemic greatly affected the number of people visiting retail shops. Establishments in this subsector adjusted their worker levels to align with the lighter shopper traffic. Hopefully a strong tourism season for South Dakota will help this industry recover.

In May of this year, there were 230 job openings advertised online in this industry. The most widely sought skills were:

Customer service
Cash handling
Greeting customers
Stock merchandise
Price merchandise
Grooming pets
Pricing strategies
Attention to detail
Lead a diverse workforce
Interpersonal skills

Museums, Historical Sites and Similar Institutes

Establishments in the Museums, Historical Sites, and Similar Institutions subsector (NAICS 712) engage in the preservation and exhibition of objects, sites and natural wonders of historical, cultural, and/or educational value. Examples of the types of businesses included are art galleries, museums, zoological gardens, zoos, natural science museums and observatories.

Staffing in this subsector begins its sharpest seasonal build-up from April to May, with growth normally  continuing to July. On average over the five years prior to 2020, Museums, Historical Sites, and Similar Institutions added more than 453 workers (89.5%) from April to July.

This subsector offers opportunities in the following types of occupations:

Tour and Travel Guides
Landscaping and Groundskeeping Workers
Retail Salespersons
Curators
Animal Caretakers
Fast Food and Counter Workers

While this subsector’s worker level was hit fairly hard during the pandemic’s impact in 2020 (a decrease of 125 workers or 19.7 percent), wages increased by 13.3 percent to an annual average of $30,536.

Prior to the pandemic, museums were showing gradual increases in year to year employment. Rather seasonal, historical sites employment have been remaining unchanged. Zoos and botanical gardens were affected the most by the pandemic, showing the largest employment loss in proportion to the other subsector categories. Nature parks and other similar institutions lost employment in 2020 but had shown consistent employment numbers the past few years.

There were 10 openings advertised online for jobs in Museums, Historical Sites and Similar Institutions in May. The specific types of skills most in demand were:

Customer service
Cash handling
Answer phone calls
Welcome patrons
Attention to detail
Work independently
Transfer calls

Religious, Grantmaking, Civic, Professional, and Similar Organizations

Establishments in the Religious, Grantmaking, Civic, Professional, and Similar Organizations (NAICS 813) subsector coordinate and promote religious activities; support various causes through grantmaking; advocate various social and political causes; and promote and defend the interests of their members. These establishments within this subsector may publish newsletters, books and periodicals for distribution to their membership. While their employment numbers are not significantly impacted by tourism, entities such as chambers of commerce, local economic development organizations and other business associations are included in this subsector; and many are directly involved in encouraging tourism-related business.

Employment in this subsector heads upward between April and June or July, with the biggest jumps occurring between May and June. Growth from April to June averages about 13%, or roughly 448 workers.

The occupations in this subsector most commonly found in the types of establishments impacted by tourism include:

Management Analysts
Bartenders
Amusement and Recreation Attendants
Public Relations Specialists
Receptionists and Information Clerks
Waiters and Waitresses
Market Research Analysts and Marketing Specialists
Recreation Workers
Janitors and Cleaners, Except Maids and Housekeeping Cleaners
Lifeguards, Ski Patrol, and Other Recreational Protective Service Workers
Customer Service Representatives
Fundraisers
Meeting, Convention, and Event Planners
Office Clerks, General
Cooks, Short Order

The Religious, Grantmaking, Civic, Professional, and Similar Organizations subsector had negative employment growth over 2020. This subsector lost 264 workers to bring their new total to 3,304. On an encouraging note, average annual wages grew at a pace of 14.1 percent to $36,989.

From a more current perspective, there were 168 job openings advertised online within this subsector in the state in May 2021. Some of the skills most frequently mentioned in the job listings as being required were:

Customer service
Outgoing personality
Fundraising
Work independently
Interpersonal skills
Problem solving
Record keeping

Scenic and Sightseeing Transportation

Businesses in the Scenic and Sightseeing Transportation subsector (NAICS 487) use transportation to provide recreation and entertainment. The activity is local in nature, usually involving same-day return to the point of departure. Establishments most directly correlated to tourism include sightseeing buses, trolleys, train excursions, scenic helicopter rides and charter fishing boat services.

Although this is a small industry (with employment averaging 103 annually over the last few years prior to the pandemic), it is definitely highly reliant on visitor spending. Employment growth in Scenic and Sightseeing Transportation businesses more than triples from April to July based on monthly employment data for 2015-2019. The sharpest seasonal employment increase tends to be from April to May each year, as workers are onboarded to transport visitors to popular destinations or take vacation adventures.

This subsector provides a unique niche of job opportunities in South Dakota in such occupations as Passenger Vehicle Drivers (except Bus Drivers, Transit and Intercity) and Aircraft Service Attendants and Transportation Workers, All Other.

Annual average worker levels in this small subsector had been stable over the last few years with minimal movement. But the “year of the pandemic” (2020) dealt a small blow to even this industry, with a loss of five workers (4.8%) over 2019.

There was just one job opening advertised in this occupation in May 2021, and none advertised in the two prior months. This is quite likely a reflection of the small, stable employment in the industry and the unique skill set required, possibly with the same workers returning to seasonal posts from year to year.

Exploring Tourism-Related Career Opportunities

The tourism-related industries profiled above offer great job opportunities for those who like working with people and entertaining them, are patient, energetic and able to put the needs of others before their own. Those with good customer service, attention to detail, interpersonal skills, problem solving, flexibility and a positive attitude just may find the rewarding job they’ve been looking for.

We encourage those interested to explore current tourism job opportunities in SDWORKS, the state’s largest job database. To learn more about careers in this field, visit our Hospitality and Tourism Career Cluster page. Also available is a colorful poster featuring Hospitality and Tourism careers.

If you’re an employer in one of these industries looking for workers and haven’t already done so, we encourage you to connect with your nearest Job Service office for assistance.