Arkansas Tourism Ticker: 2% tourism tax revenue remains on record pace

Tourism industry jobs, the state’s 2% tourism tax and municipal hospitality taxes continue to show that Arkansas’ leisure and hospitality economy remains healthy in 2023 – especially when considering it’s up against what were record numbers in 2022.

Arkansas’ 2% tourism tax revenue between January and October was $22.062 million, up 6% compared with the $20.809 million in the same period of 2022. Revenue in each month of 2023 set a new record, with those gains compared to record numbers in 2022. A record for monthly collections was set in June 2023 with $2.71 million.

The tourism sector posted record employment of 133,400 in August, and has remained above 130,000 jobs since April.

The tourism tax revenue in 2022 was $24.049 million, up 17% compared with the $20.544 million in 2021. During 2022, revenue set a record in October of $2.528 million, with collections for each month topping $1 million for the first time. The state’s 2% tourism tax revenue fell almost 23% in 2020, and fell to levels not seen since 2014.

January-October hospitality tax collections among 17 cities surveyed for the Arkansas Tourism Ticker were up 5% compared with the same period in 2022.

Restaurant (prepared food tax) tax collections among the 17 cities totaled $43.754 million in January-October 2023, ahead of the $41.638 million in the same period of 2022. Hotel tax collections among the 17 cities totaled $15.059 million in January-October 2023, up 4.7% compared with the $14.387 million in the same period of 2022.

“The latest Tourism Ticker gains are a testament to the robust hospitality industry in the state of Arkansas. As we move into 2024, we expect continued growth in the state’s second largest industry. We are proud of everything Arkansas has to offer in food, lodging and tourism,” noted Arkansas Hospitality Association CEO Katie Beck.

The Arkansas Tourism Ticker is managed by Talk Business & Politics, and sponsored by the Arkansas Hospitality Association. The ticker uses the following three measurements to review the health of the state’s tourism industry.
• Hospitality tax collections – prepared food tax and lodging tax – of 17 Arkansas cities;
• Tourism sector employment numbers as reported by the U.S. Bureau of Labor Statistics; and
• Collections of Arkansas’ 2% statewide tourism tax.

Results for the January-October 2023 Tourism Ticker report are:
• 5% increase
Hospitality tax revenue in January-October 2023 among 17 Arkansas cities reviewed for the Arkansas Tourism Ticker compared with the same period in 2022

• 6% increase
Collections of Arkansas’ 2% statewide tourism tax in January-October 2023 compared with the same period in 2022

• 6.6% increase
Gain in monthly average of Arkansas’ tourism industry jobs in January-October 2023 compared with the same period in 2022

Link here for the full PDF of the January-October 2023 Arkansas Tourism Ticker.