Amtrak expansion grabs interest from tourism organizations

SIOUX FALLS, S.D. (Dakota News Now) - Tourism is up once again in South Dakota, with 2023′s numbers beating out 2022 and even those before the pandemic. Tourism groups in the state’s two largest cities are looking to capitalize on that growth, and they see potential Amtrak service as a way to boost numbers even more. But not every organization is jumping at the chance.

97 percent of visitors to South Dakota drive to the state. But more and more are also flying in, combining with more business to have the state’s two largest airports in Sioux Falls and Rapid City call for expansion.

State Tourism Secretary Jim Hagen said this is a good problem to have.

“Both airports, bursting at the seams. Both setting records, so to have those airports be able to grow into the future and accommodate more visitors is great. It’s not only good for tourism, it’s good for economic development,” Hagen said.

MORE: Sioux Falls Regional Airport designing $100+ million expansion

But what he’s not sure about yet is expanding that access to Amtrak service. While the Federal Railroad Administration’s Long Distance Service Study lists two potential routes through the state in its current iteration, he said there’s no solid number yet on what that would cost, and who’s paying for it.

“Everybody has that curiosity, ‘What could it look like?’ But that curiosity comes with a price tag too. I think we’ve got a lot of hurdles to jump over. I think there will be a lot more studies done in term of is this feasible,” Hagen said.

Last week, South Dakota Transportation Secretary Joel Jundt commented on the FRA’s ongoing study, telling the South Dakota Railroad Board that he doesn’t think the state will be the top priority when it comes to adding service. Those comments were rebuked by advocates looking to return passenger rail service to the state for the first time since 1969.

MORE: Transportation Secretary throws cold water on South Dakota Amtrak expansion

Tourism organizations in South Dakota’s two largest cities, Experience Sioux Falls and Visit Rapid City, state they know that uncertainty is real. Any potential expansion of passenger rail to South Dakota would need to be weighed on what costs there are, and what funding sources are available.

But that’s not holding them back from thinking of the possibilities.

Experience Sioux Falls CEO Teri Schmidt said passenger rail could help the city reach visitors that otherwise wouldn’t think about traveling to the Mount Rushmore State.

“People are looking for adventure and experiences. Amtrak can deliver that, as the others can, but it’s another way to get people in here. Not everybody likes to fly, not everybody likes to drive,” Schmidt said.

Visit Rapid City CEO Brook Kaufman agreed, and said that many people out west already make it a point to visit the Black Hills and then move on to other areas. If they can join in on people looking for a slower visit by just taking the train, it will help boost their numbers as well.

“A neat thing about adding another option is that it truly does give people maybe who are in a situation where they don’t have a car, or maybe they’re traveling across the country. It really does open up a segment of visitors that we’re probably not at this time able to serve very well,” Kaufman said. “So I think even something like that where they have a different option of not just getting in the car and driving or having to fly community to community, that’s a really popular route for especially that leisure visitor. Might open up some opportunities with that too.”

Both Schmidt and Kaufman said that outside of tourism, more visitors means more for businesses, and that can help spur more development in two already growing cities.

“On case studies, they’ve said it’s really driven tens of millions or hundreds of millions of dollars in development around a station. So I think there’s a lot of opportunity with that,” Kaufman said.

“It would also elevate Sioux Falls in the business world, as, ‘Boy, that community has it going on, or they would never have Amtrak,’” Schmidt said.

MORE: Considering economic pros and cons of potential passenger rail expansion

The next round of stakeholder meetings for the Federal Railroad Administration’s Study will be taking place at the end of May. From there, it’s expected that the final report due to Congress will be put together by the middle of June.

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