Tourism Industry Revenue, Jobs Up In NW Arkansas And The State
by December 22, 2014 7:58 pm 88 views
The travel and tourism industry in Northwest Arkansas is set to finish 2014 on a high note, and Arkansas’ 2% tourism tax should set a new collections record.
The continued positive trend in local and state travel and tourism data come as the federal Bureau of Economic Analysis reports a decline in travel and tourism spending in the third quarter. The BEA reported Dec. 18 that such spending grew at an annual rate of 1.3% after growing 3.3% in the second quarter. Spending during the third quarter of 2013 grew at a rate of 3%.
Through the first half of 2014, hospitality tax collections in Bentonville, Fayetteville, Rogers and Springdale totaled $2.764 million, up 6% from $2.606 million in 2013. Springdale, Rogers, Fayetteville and Bentonville each collect a 2% room tax on hotels and meeting space. Bentonville and Fayetteville collect a 1% tax and 2% tax, respectively, on prepared food.
Employment in the region’s tourism industry was 22,600 during October, down from a record of 22,800 in September but ahead of the 21,600 in October 2013, according to the U.S. Bureau of Labor Statistics. Employment in the regional sector is up almost 49% compared to the 15,200 employed in October 2004.
Enplanement traffic at the Northwest Arkansas Regional Airport (XNA) likely broke a new annual enplanement record on Dec. 5, and could end the year with around 640,000 enplanements. Travelers flying out of XNA during November totaled 49,222, up 6.47% compared to the 46,229 during November 2013. For the first 11 months of 2014, enplanements at XNA total 591,480, up 10.37% compared to the same period in 2013. The year-to-date 2014 traffic is up 7.17% compared to the same period in 2007 – the year XNA reached its record enplanement of 598,886.
ARKANSAS TOURISM TAX, JOB NUMBERS
Collections of Arkansas’ 2% tourism tax during the first nine months of 2014 totaled $10.616 million, up 6.76% compared to the $9.943 million during the same period of 2013.
The 2% tourism tax set a record in 2013 by reaching $12.716 million, and the 2014 numbers are on track to beat that record.
The 2013 collections were up 2.5% compared to the $12.405 million in 2012, and well ahead of the $11.378 million slump in 2009 when national economic conditions proved tough on Arkansas’ tourism industry.
Employment recently set another record for Arkansas’ travel and tourism industry. Arkansas’ tourism sector (leisure & hospitality) employed 109,400 during November, up from 109,200 during October, and above the 106,600 during November 2013. The November number, if it stands, marks a new record for employment in the sector.
NATIONAL TOURISM DATA
Although national travel and tourism spending declined in the third quarter, the industry remains on an upward trend.
Employment in the travel and tourism industries fell 1.7% in the third quarter of 2014 after increasing 1.9% (revised) in the second quarter. This marks the 18th consecutive quarter of employment growth in the travel and tourism industries, according to the BEA.
By comparison, overall U.S. employment increased 2.1% in the third quarter after increasing 2.2% in the second quarter. “Food services and drinking places” was the most significant contributor to employment growth, increasing 2.9% in the third quarter.
“Total Tourism-Related Output” was $1.5 trillion in the third quarter of 2014. It consisted of $898.4 billion (58%) of direct tourism spending and $644 billion (42%) of indirect tourism-related spending.
“Total Tourism-Related Employment” was 7.8 million jobs in the third quarter of 2014 and consisted of 5.5 million (71%) direct tourism jobs and 2.3 million (29%) indirect tourism-related jobs.