Collections indicate improving Arkansas tourism industry

BusinessFort SmithNews on the Wire

by The City Wire staff ([email protected]) September 26, 2011 8:19 am 57 views 

story by Roby Brock and Michael Tilley
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Arkansas’ tourism tax collections through July are up 1.74% compared to the same period of 2010 and aren’t far behind 2008, the record year of collections for the state’s 2% tourism tax.

From January through July 2011, the state’s 2% tourism tax brought in $7.116 million, compared to $6.994 million during the same period one year ago. The year-to-date tourism tax collections are 2.29% more than compared to the 2009 period, and are just 1.42% below 2008. In 2008, the state collected a record $12.005 million from the tourism tax.

Following are the tourism tax collections by year, since 2005.
2010: $11.492 million
2009: $11.378 million
2008: $12.005 million
2007: $11.571 million
2006: $11.089 million
2005: $10.177 million

The boost in travel and vacationing in Arkansas can be attributed to several factors, says Joe David Rice, Arkansas’ tourism director.

"Arkansas’s tourism industry has a couple of key things going for it. First, we have a good product and we’re continuing to make it better. Next, our research-based marketing campaign is making the most of every tax dollar we invest. And we’re very fortunate that several of our key feeder markets have been pretty resilient in these tough economic times," Rice said.

Arkansas’ top out-of-state markets for visitors include: Oklahoma City, Tulsa, Kansas City, Springfield, St. Louis, Memphis, Jackson, Houston, Dallas, and Fort Worth.

Rice said two states stand out in particular.

"The Texas and Oklahoma economies seem to be in better shape than most, and I think their residents are still traveling – with many of them choosing the Natural State," Rice said.

Arkansas’ tourism sector — Leisure & Hospitality jobs — employed an estimated 105,300 during August, down compared to the 106,100 in July and 5.93% more than in August 2010.

In Oklahoma, the tourism sector employed an estimated 144,300 during August, down from the 144,500 in July but up compared to the 138,100 in August 2010. Texas, which has a large tourism industry, had an estimated 1.042 million employed in the tourism sector during August, down from the 1.043 million in July and up over the 1.006 million during August 2010.