Mitchell's Economy: Beyond the Corn Palace
Understanding the Basics
Taxable Sales Data
These are the total dollar amounts of all taxable purchases in the city—groceries, gas, meals, hotel rooms, etc. We're looking at the actual sales figures (e.g., $100 purchase) from the South Dakota Department of Revenue, not the tax collected on them (e.g., $2 tax).
The Corn Palace
Mitchell's famous tourist attraction, decorated with corn and grains. We have been told for decades that it attracts hundreds of thousands of visitors annually, driving the local economy.
Fair Comparisons
Like comparing population growth rates between cities of different sizes, we adjust for city size to see true patterns. This lets us compare Mitchell to Sioux Falls fairly.
Economic Activity
Total money flowing through the local economy. Higher activity means more jobs, business growth, and community prosperity.
Tourist Season
June, July, and August—when families travel, kids are out of school, and tourist attractions typically see their highest visitor numbers. Marked with 🌽 in our charts.
Why This Matters
Mitchell invests millions in the Corn Palace. If it's not driving our economy as believed, that money could better serve residents through parks, infrastructure, and community amenities.
Data Sources
All data comes from the South Dakota Department of Revenue's Historical Tax Statistical Reports . Specifically, the data is from the 2023 and 2024 reports under the "Municipal Taxable Sales per City by SIC Code" sections. We averaged these two years to account for year-to-year variations and provide a more stable representation of economic patterns.
Methodology: Cities were selected based on comparable size and complete data availability across all analyzed sectors. For normalized comparisons, the data is normalized to Mitchell's January baseline to enable fair comparisons between cities of different sizes. Full datasets are publicly available from the South Dakota Department of Revenue website for independent verification.
Table of Contents
The Real Story: Mitchell's Economy Thrives Year-Round
For decades, Mitchell has operated under a simple assumption: the Corn Palace brings tourists, and tourists drive our economy. This belief continues to shape major decisions—from the proposed $20+ million upgrade (originally pitched as $12 million) (including plans to expand seating and floor space) to new initiatives aimed at extending visitor stays. Tourism officials cite impressive numbers: $118 million in visitor spending generating millions in tax revenue , with tourism supporting 1,600 jobs and providing $54 million in labor income in Davison County alone. But what if the data tells a completely different story?
How South Dakota Inflates Tourism Numbers
We analyzed two years of taxable sales data - the most direct measure of economic activity - comparing Mitchell to other South Dakota cities. This data captures the total dollar value of every taxable purchase made in our community, from groceries to gas to hotel stays. If tourists were flooding Mitchell for the Corn Palace, we'd see clear patterns in this data.
What we found will surprise you. Let's start with a simple question: When is Mitchell's economy strongest? If the Corn Palace drives our economy through summer tourism, you'd expect June, July, and August to top the charts. Instead, look at what the data actually shows:
Best Months
Worst Months
Notice What's Missing
If the Corn Palace were Mitchell's economic driver, we would expect peak tourist months to lead in taxable sales. However, peak Corn Palace months rank quite poorly, with May (#10), June (#7), and August (#8) far below non-tourist months like January (#3), November (#5), and October (#1). These findings challenge the long-held assumption that Mitchell's economy depends on Corn Palace tourism. Instead, the data reveals a robust, year-round economy driven by local residents and regional commerce, not seasonal tourists.
The Summer Tourism Test
But maybe these strong fall and winter months are just a quirk? To truly understand Mitchell's economy, we need to compare it to other South Dakota cities. Here's why this matters:
The Test
If the Corn Palace is driving Mitchell's economy through tourism, we should see patterns in Mitchell's data that don't exist in other cities - especially cities without major tourist attractions. Think of it as a scientific experiment: Mitchell should show unique summer spikes that other cities don't have.
Let's start by looking at the actual dollar amounts of taxable sales across these cities:
Why This Chart Is Misleading
Why Raw Numbers Hide the Real Story
To understand if the Corn Palace actually drives tourism, we need to compare apples to apples. Think about it this way:
The Population Example
Sioux Falls:
- Population: 200,000
- New residents: +2,000
- Growth rate: 1%
Mitchell:
- Population: 15,000
- New residents: +300
- Growth rate: 2%
Mitchell grew twice as fast!
The Tourism Test
Mitchell has more total taxable sales than Brandon or Hartford because it's a bigger city. But that doesn't tell us about tourism impact.
If the Corn Palace attracts significant tourists, Mitchell should show unusual summer growth compared to cities without tourist attractions. If all cities show similar seasonal patterns, then Mitchell's summer activity is just part of normal South Dakota trends, not Corn Palace tourism.
The Summer Tourism Reality Check
So let's adjust the data to make a fair comparison. We'll set each city's January sales as their baseline (100%) and see how each month compares to that baseline. This reveals the true growth patterns:
Monthly Economic Activity (Normalized for City Size) Summer Impact
Summer months: June-September
Metric Definitions:
- Total Annual Revenue: Total taxable revenue for each city in this category
- Non-Summer Avg Monthly: Average monthly revenue during non-summer months (baseline)
- Summer Avg Monthly: Average monthly revenue during summer months (June-September)
- Summer Boost: The dollar difference between summer and non-summer monthly averages
- % Increase: Percentage increase from baseline to summer (Summer Boost ÷ Non-Summer Average)
- Total Summer Impact: Total additional revenue generated during summer months above the baseline (Summer Boost × 4 months)
- Boost % of Annual: Percentage of annual revenue attributable solely to the summer increase (Total Summer Impact ÷ Total Annual Revenue)
Now let's examine the actual numbers. If Mitchell's economy truly depends on Corn Palace tourism, we should see exceptional summer growth compared to other cities:
The Surprising Truth: Mitchell Shows the Weakest Summer Growth
Among all cities analyzed, Mitchell's summer sales increase (5.52%) ranks dead last. To put this in perspective: Hartford—a city with no tourist attractions whatsoever—experiences nearly three times more summer growth (15.47%). This finding directly contradicts the narrative that the Corn Palace drives significant tourism-related sales.
These numbers reveal a fundamental truth: Mitchell's economy shows no evidence of meaningful summer tourism impact. A city that supposedly depends on summer visitors actually has the region's weakest seasonal performance. The data clearly demonstrates that Mitchell thrives as a year-round commercial center, not as a tourist destination. Our economic strength comes from local residents and regional commerce, not from Corn Palace visitors.
Hotels and Restaurants: Where Tourism Should Show Up Most
Before we discuss what this all means, let's examine specific business sectors. If the Corn Palace is truly driving tourism, we should see it most clearly in hotels and restaurants:
Hotel & Lodging Revenue
Why Hotels Matter: Hotel sales are often discussed by city leaders. Tourism officials have noted that "hotel occupancy increased four to five times compared to the off-season" during peak periods. STR data shows Mitchell hotels average 35% occupancy in January (355 rooms) and 76% occupancy in August (771 rooms). Hotels are impacted by summer tourism across South Dakota, but the key question is: How much of Mitchell's increase is driven by the Corn Palace versus other factors like increased summer travel, location on Interstate 90, or general seasonal patterns? Let's look at what the taxable sales data reveals:
Hotel Sales (Normalized) Summer Impact
Summer months: June-September
Metric Definitions:
- Total Annual Revenue: Total taxable revenue for each city in this category
- Non-Summer Avg Monthly: Average monthly revenue during non-summer months (baseline)
- Summer Avg Monthly: Average monthly revenue during summer months (June-September)
- Summer Boost: The dollar difference between summer and non-summer monthly averages
- % Increase: Percentage increase from baseline to summer (Summer Boost ÷ Non-Summer Average)
- Total Summer Impact: Total additional revenue generated during summer months above the baseline (Summer Boost × 4 months)
- Boost % of Annual: Percentage of annual revenue attributable solely to the summer increase (Total Summer Impact ÷ Total Annual Revenue)
Yes, Mitchell's hotels see a summer boost - a 67% increase is significant. But here's what's revealing: Brandon, with no Corn Palace or tourist attractions, sees a nearly identical 62% increase. Hotels have fixed capacity year-round - the same 1000 rooms in January are available in July. Look at Huron with just a 27% summer increase - their hotels are likely happier maintaining steadier occupancy throughout the year rather than dealing with dramatic seasonal swings. Mitchell hoteliers have expressed interest in attracting more visitors during the low-occupancy winter months of January through March.
Summer brings increased travel across South Dakota: families visiting relatives, Interstate 90 travelers needing overnight stops, regional events, youth sports tournaments, and business travel. These factors fill hotel rooms in every South Dakota city. If the Corn Palace were truly drawing masses of tourists, Mitchell's summer increase would far exceed Brandon's - not match it almost exactly. Instead, both cities see similar patterns because they're drawing from the same pool of summer travelers, not unique Corn Palace visitors.
Restaurant & Dining Revenue
Restaurants tell a similar story. If tourists were flooding Mitchell for the Corn Palace, we'd expect to see restaurant sales spike above other cities:
Restaurant Sales (Normalized) Summer Impact
Summer months: June-September
Metric Definitions:
- Total Annual Revenue: Total taxable revenue for each city in this category
- Non-Summer Avg Monthly: Average monthly revenue during non-summer months (baseline)
- Summer Avg Monthly: Average monthly revenue during summer months (June-September)
- Summer Boost: The dollar difference between summer and non-summer monthly averages
- % Increase: Percentage increase from baseline to summer (Summer Boost ÷ Non-Summer Average)
- Total Summer Impact: Total additional revenue generated during summer months above the baseline (Summer Boost × 4 months)
- Boost % of Annual: Percentage of annual revenue attributable solely to the summer increase (Total Summer Impact ÷ Total Annual Revenue)
The bottom line is that the pattern is consistent: In both hotels and restaurants, Mitchell's summer increases fall within the range of other South Dakota cities. The data shows no exceptional tourism spike that would indicate the Corn Palace is drawing significant visitors. The summer increases we see in Mitchell appear to be part of broader South Dakota seasonal patterns, not evidence of Corn Palace-driven tourism.
Why This Matters
The data reveals a fundamental truth about Mitchell's economy: Corn Palace tourism is such a minor factor it's barely detectable. This isn't about fall and winter being stronger - it's about Mitchell having a healthy, stable year-round economy where supposed tourist impacts are negligible.
- Mitchell has consistent economic activity all year - Not the dramatic seasonal swings you'd see in a tourist-dependent city
- Summer patterns match cities with zero tourist attractions - Brandon shows nearly identical growth without any draw for visitors
- Hotels and restaurants see typical South Dakota seasonality - Nothing unique to suggest Corn Palace tourism
This matters because Mitchell is preparing to invest another $20+ million in the Corn Palace, on top of $5.6 million still owed. This includes plans to expand seating and floor space—essentially doubling down on a strategy that the data shows isn't working. Tourism officials justify this by claiming $118 million in visitor spending, but remember: that figure includes anyone traveling 50+ miles, turning routine shopping trips into "tourism." The actual taxable sales data reveals minimal economic impact from genuine Corn Palace tourism. Every dollar spent chasing marginal tourist returns—whether on expanded seating or other upgrades—is a dollar not invested in what actually works: making Mitchell a better place to live, work, and raise a family.
The evidence is clear - Mitchell should stop chasing phantom tourist dollars and start investing in its real strength: being a stable, thriving community. While city leaders fixate on tourism, the real economic story is happening elsewhere. Professional services, construction, and healthcare are driving Mitchell's growth—sectors that have nothing to do with the Corn Palace. These industries provide stable, well-paying jobs that support families year-round. They attract skilled workers who become permanent residents, buy homes, and contribute to the economy every single day. The path forward is obvious: focus on growing and retaining these quality jobs that build sustainable prosperity, rather than chasing seasonal tourist dollars that barely register in our economic data.
Mitchell should improve parks, streets, and amenities for residents. Support local businesses that serve the community year-round. Attract new residents who will contribute to the economy every day, not imaginary tourists who might visit once. The data shows Mitchell succeeds as a place to live, not as a tourist destination.
A comment from Roger
The Path Forward: Investing in What Actually Works
A New Path Forward
The data reveals an opportunity for Mitchell to redirect its economic development strategy. Rather than continuing to invest millions in attracting tourists who barely register in our economic data, Mitchell can focus on what truly matters: building a thriving community for the people who live here.
Quality of life drives economic growth. When a city offers excellent schools, well-maintained parks, safe neighborhoods, and vibrant downtown amenities, it attracts families and businesses. These permanent residents contribute to the economy 365 days a year through their purchases, property taxes, and community engagement.
The data shows Mitchell already has the foundation of a strong, stable economy. Unlike tourist-dependent communities that experience dramatic seasonal swings, Mitchell maintains consistent economic activity throughout the year. This stability is an asset that should be leveraged.
Strategic investments that actually matter:
- Modernize infrastructure to support growing families and businesses
- Enhance recreational facilities that residents use year-round
- Develop workforce training programs aligned with local industry needs
- Create housing options that attract young professionals and families
- Support local entrepreneurs who serve the community daily
A comment from Roger
Mitchell has the opportunity to join forward-thinking communities that prioritize resident quality of life as their primary economic development strategy. The data confirms this approach aligns with Mitchell's existing economic strengths.
What do you think? Does this data change how you see Mitchell's economy?