Arkansas’ Tourism Tax Revenue Sets New Record In 2014, Sector Jobs Hit New High
by February 11, 2015 10:53 pm 81 views
Collections of Arkansas’ 2% tourism tax needed only 11 of the 12 months of 2014 to set a new annual record. Arkansas Parks and Tourism Director Richard Davies said this might happen.
Collections of Arkansas’ 2% tourism tax during the first 11 months of 2014 totaled $12.866 million, up 7.51% compared to the $11.967 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 reach more than $13.5 million in 2014. When the 2013 record was set, Davies predicted that 2014 would be even better.
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.
JOBS
Growth in tourism jobs has tracked with growth in statewide tourism tax collections, with employment recently hitting a new record for Arkansas’ travel and tourism industry.
Arkansas’ tourism sector (leisure & hospitality) employed 109,400 during November 2014, above the 106,600 during November 2013. The November number, if it stands, marks a new record for employment in the sector.
Arkansas’ tourism sector (leisure & hospitality) employed 113,900 during December 2014, up from 106,900 during December 2013. The December number, if it stands, marks a new record for employment in the sector. Employment in the sector is up 23% in the past 10 years.
The positive statewide numbers were likely helped by increased tourism and travel activity in Northwest Arkansas. Football, craft fairs, art and a growing Northwest Arkansas economy helped to spur a 8.2% jump in hospitality taxes among the region’s four largest cities through the first 10 months of 2014.
Bentonville Fayetteville, Rogers and Springdale reported $4.805 million in hospitality taxes from January through October 2014. That compared to $4.44 million reported in the same period of 2013. Each of the cities collect a 2% hotel tax, Fayetteville also collects a 2% prepared-food tax, while Bentonville has 1% restaurant and prepared-food taxes.