Because of Hot Springs State Park, tourism is of considerable economic importance to Thermopolis. A state maintained herd of American Bison reside in Hot Springs State Park, which extends into the northeast corner of town. Two hot mineral water concessions with numerous water slides and other attractions, the Teepee Pools and Star Plunge are located within the park. Two hotels, Days Inn-Safari Club and Best Western-Plaza Inn, are also in the park. Other tourism-related businesses in and near the town include the Downtown Thermopolis Historic District, the Hot Springs County Museum and Cultural Center and the Wind River Canyon Whitewater Rafting. Thermopolis (indeed, all of Hot Springs County) levies a 4% lodging tax for boarders in county hotels and motels.
The Hot Springs County Museum and Cultural Center has an eclectic collection of memorabilia from local pioneers circa 1890 through 1910, with plans to focus on Tim McCoy, who lived in Hot Springs County from 1912 to 1942, during which he built the High Eagle Ranch about 45 miles west of town. He worked for many years as an actor in what are now called B westerns, or lower-budget cowboy movies in Hollywood.
Nearby East Thermopolis is home to the Wyoming Dinosaur Center, a non-profit corporation that conducts paleontology digs in the area and maintains a visitor center with a museum, gift shop and snack bar. They offer daily tours of the dig site that allow visitors to participate in excavations.
Every May since 1993, thousands of basketball players have descended upon Thermopolis for the annual 3 on 3 Hot Spot Shootout Basketball Tournament. The event is typically hosted on the first weekend in May (Friday, Saturday, Sunday), but has also been held on the second weekend in May. The tournament shuts down several blocks of the city for the weekend, as up to 60+ temporary basketball courts are constructed on city streets in the downtown area. The event is co-sponsored by the Hot Springs County Chamber of Commerce and Hoop World Basketball.
On August 21, 2017, Thermopolis experienced a total eclipse of the sun.