Arkansas Tourism: 2 steps forward, 1 step back

Editor’s note: Roby Brock, with our content partner Talk Business, wrote this report. He can be reached at [email protected]

Despite the worst March in 5 years, Arkansas tourism tax collections remain 1.3% higher than last year’s first quarter, and for the state’s fiscal year, collections are up 3.1% at the nine-month mark.

However, spring collections could be as challenging as the recent weather.

Revenues suggest it’s literally been "two steps forward, one step back" for the state’s tourism industry. Six of the 9 months in the current fiscal year have been improvements over last year’s numbers, while 3 months have reported a decline.

"The state’s tourism industry continues to rebound, although we’re not yet where we need to be," said Arkansas Tourism Director Joe David Rice tells. He added that the rough weather of April and May is likely to impact collections in future reports.

"The heavy rains in recent weeks have slowed things down, and high water levels at Corps reservoirs will impact Mountain Home, Heber Springs, and other areas dependent on lake-based tourism," Rice said. "A couple of our state parks sustained considerable damage as a result of the storms. Likewise, the Buffalo National River has had to close several popular areas and many roads within the park remain rough."

Tourism, a nearly $6 billion industry in Arkansas, has a dedicated 2% sales tax. It is collected at hotels and recreational facilities for everything from room rentals to the rental of boats and marine equipment. The state’s tourism sector — leisure & hospitality jobs — increased to 104,100 workers in April, continuing a positive trend that began in September 2010. The sector employed 102,600 in March, and 98,900 in April 2010.

For the first 3 months of 2011, the state’s tourism tax reports indicate $2,355,161 was collected. One year ago, quarterly collections were $2,323,846.

At the 9-month mark in the state’s fiscal year, officials report $8,196,632 in tourism taxes compared to $7,948,028 during the first 9 months of the last fiscal year. The current fiscal year ends June 30, 2011.

Despite the tough spring start, Rice said he’s expecting a strong summer.

"Most reports indicate Hot Springs is off to a fine start and it appears the meeting/convention business is showing signs of life in Little Rock," he said. "New attractions slated to open within the next few weeks include the Osage Creek Amphitheater complex just west of Springdale and Rowdy Adventures, a zip-line operation on Interstate 30 near Prescott. And, of course, we’re all excited about the scheduled unveiling of the Crystal Bridges Museum of American Art in Bentonville on November 11."