Arkansas Tourism Ticker: 2% tourism tax revenue sets a new record in 2023

Arkansas’ 2% tourism tax revenue between January and December was $25.446 million, up 5.8% compared with the $24.049 million in 2022. Revenue in each month of 2023 set a new record, with those gains compared to record numbers in 2022.

The 2% revenue was boosted in part by 13.7% and 8% year-over-year gains, respectively, in Benton and Pulaski counties.

A record for monthly 2% collections was set in June 2023 with $2.71 million. The state’s 2% tourism tax revenue fell almost 23% in 2020, and fell to levels not seen since 2014. Also, the 2023 2% revenue is up 50% compared with the $12.716 million in 2013.

The tourism sector posted record employment of 127,500 in March, and finished the year with 126,600 jobs in December.

January-December hospitality tax collections among 17 cities surveyed for the Arkansas Tourism Ticker were up 5.9% compared with the same period in 2022.

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 (cities listed below along with collections for each city);
• 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-December 2023 Tourism Ticker report are:
• 5.9% increase
Hospitality tax revenue in January-December 2023 among 17 Arkansas cities reviewed for the Arkansas Tourism Ticker compared with the same period in 2022

• 5.8% increase
Collections of Arkansas’ 2% statewide tourism tax in January-December 2023 compared with the same period in 2022

• 3.4% increase
Gain in monthly average of Arkansas’ tourism industry jobs in January-December 2023 compared with the same period in 2022

Arkansas Hospitality Association CEO Katie Beck said continued gains in the face of some economic obstacles points to the strength of the state’s tourism industry.

“With record setting gains across-the-board yet again, this is a testament to the incredible character of our hospitality and tourism professionals and businesses. Despite high interest rates, staffing shortages, and continued inflation, this industry is poised to overcome these issues yet again, and we are excited for the Eclipse and the rest of what 2024 has in store,” Beck said.

The combined hospitality tax collections in the 17 cities totaled $70.085 million in January-December 2023, up 5.9% compared with the $66.166 million in the same period of 2022. Of the 17 cities surveyed for the Arkansas Tourism Ticker, 13 posted hospitality tax collection increases in January-December 2023 compared with the same period in 2022. The biggest annual gain was 12.66% in Jonesboro, with the biggest decline being -12.4% in Pine Bluff.

Link here for a PDF of the complete January-December 2023 Arkansas Tourism Ticker.