State of the State Mid-Year 2024: Arkansas tourism continues to be a strong industry

Arkansas Tourism Director Dalaney Thomas said the state’s 2% tourism tax collections continue to rise with fiscal year 2024 (June 2023-July 2024) closing out at a record $26.363 million, up 5.13% compared with the recent fiscal year.

“Arkansas’ travel industry continues to see growth in large part thanks to the expansion of the state’s marketing footprint and the return of strong business and corporate travel,” Thomas said.

The tax collections are directly allocated toward promotion of the state, and Thomas said those efforts are working.

“Arkansas residents and visitors alike recognize The Natural State as a significant destination for recreational and cultural experiences. Not only that, tourism truly equals economic development when you consider its impact on a location’s appeal for residents to live and work,” Thomas said. “Arkansas offers world-class outdoor recreation and unique attractions found nowhere else. And we continue to cement our reputation as one of the world’s top mountain biking destinations. We’re also home to outstanding hiking, floating and rock climbing, and of course Arkansas has long been known for its fishing and hunting.”

She said leisure travel across the state has been relatively stable when looked at as a whole with some counties being slightly up while others are slightly down. Certain areas, like Benton County, continue to see expanded visitation, she said.

TRAILS, MUSIC
Trails and recreational options continue to expand in Arkansas, and the state’s vibrant music and events scene promote all genres and interests in a way that appeals to many different tastes, she said.

The Arkansas Symphony Stella Boyle Smith Music Center, which is slated to open in September in Little Rock, will be the first permanent home for the Arkansas Symphony Orchestra. The center will also host music education, music performances, and music making to the community and will have a broadcast and recording studio.

But the state is also doing a good job of expanding offerings to include unique culinary experiences and local events and activities, according to Thomas.

“Visitors want to experience what it’s like to live as a local, and our communities have worked hard to provide this experience. Downtowns across The Natural State have become vibrant hubs of activity, with restaurants, coffee shots, shopping options, art galleries, and more,” she said.

The Fayetteville Ale Trail has added several new breweries, bringing the total to 24 locations. The self-guided tour of craft breweries started in 2013 with seven breweries located in Fayetteville, the birthplace of craft beer culture in Northwest Arkansas. Fayetteville now has nine craft breweries. The Ale Trail has expanded to include other brewery stops (and one cidery) in the nearby cities of Springdale, Rogers, Bentonville, Lowell, Eureka Springs, Gravette and Siloam Springs. Even more breweries are expected to open soon, according to information from Arkansas Tourism.

‘AN AUTHENTIC EXPERIENCE’
Thomas expects the trend being seen in Arkansas and the nation of people wanting to combine work and leisure travel will grow even more as remote work opportunities remain an option for many employees. Arkansas will need to continue to reach those people.

“Travelers are seeking inspiration and itineraries to help plan their trips, and they are relying less and less on traditional advertising to make travel decisions,” she said. “To reach potential travelers, most of the state’s current advertising is digital outreach via social media, programmatic ad buys and streaming platforms.”

Arkansas has expanded its marketing footprint to include 14 new states with a targeted approach to reaching individuals with an interest in the outdoors. Hot Springs will host the Phoenix BFL All-American Championship bass fishing tournament on May 29 – 31, 2025, on Lake Hamilton. It will be the seventh time the city has been the scene of the Championship, the most recent time being in 2022.

“Travelers are also seeking specific or niche activities, whether their interests lie in outdoor recreation or arts and culture. But regardless of interests, travelers most often have a desire for an authentic experience found nowhere else. And Arkansas no doubt delivers,” Thomas said.

Editor’s note: The State of the State series provides reports twice a year on Arkansas’ key economic sectors. The series publishes stories to begin a year and around mid-year to provide an update on the state’s economy. Link here for the State of the State page and previous stories.