Report: Arkansas tourism industry adds $9.9 billion to state economy

Arkansas tourism is now a $9.9 billion industry, and an estimated 50.7 million people visiting the state in 2023, up 17.1% compared with 2022 visitors, according to an economic impact study commissioned by the Arkansas Department of Parks, Heritage and Tourism.

The study, announced Thursday (Oct. 17), was conducted by Tourism Economics with input from DK Shifflet.

Arkansas State Parks recorded 8.4 million visitors in 2023, and 4.3 million people visited National Park Service sites in the state. The new visitors spent an additional $700 million, pushing the industry to the verge of becoming a $10 billion industry and solidifying its position as Arkansas’ second largest economic driver, according to the report.

“Tourism is our state’s second largest industry and when it grows, Arkansas’ entire economy grows with it,” said Gov. Sarah Sanders. “I’m proud our investments in – and promotion of – Arkansas’ outdoor recreation are paying off, and I’m glad we’re welcoming more visitors than ever to The Natural State.”

The highest spend categories by visitors in 2023 were in transportation, food and lodging. According to the study, transportation accounted for the largest share of overall visitor spending – 30% of the total or $3 billion. Food purchases accounted for 28% share and lodging at 17% share.

Collections for the state’s 2% Tourism Reinvestment Tax increased 5% to $25.8 million, according to the Arkansas Department of Finance and Administration. Those dollars are allocated for the marketing and promotion of tourism in the state.

“It is undeniable that Arkansas is now a premier destination, especially for outdoor recreation, because we offer a year-round outdoor experience not found elsewhere,” said Shea Lewis, secretary of the Arkansas Department of Parks, Heritage and Tourism, noted in a statement. “Arkansas Tourism broadened its marketing footprint in 2023 to include 15 new media markets, primarily in western states but also in North Carolina and Illinois, which research accurately predicted to be opportunity markets for Arkansas.”

The marketing efforts focused on three distinct tourism audience segments: travel and lifestyle, outdoor enthusiasts, and hunting and fishing. The Department’s digital advertising investment was directly responsible for hotel revenue of $68.1 million, according to Adara Travel Insights.

Other findings in the report included the following.
• $806 million in tax receipts from visitors were collected. Of the total, $574 million were for state taxes while the remaining $232 million went into local coffers. The study says each Arkansas household would have to pay an additional $911 annually to replace visitor-generated taxes received by the state of Arkansas and local municipalities.

• The Arkansas Tourism industry also supported 70,026 jobs, for a 2.8% increase from 2022, earning $2.2 billion, which is up 4.8%.

• Outside of direct impact, $ 6.8 billion in indirect and induced impact was also achieved, resulting in a total economic impact of $16.8 billion in the Arkansas economy, 6.8% above the prior year.

• Visitor activity sustained 70,026 direct jobs in 2023, with an additional 30,365 jobs supported from the indirect and induced impacts of visitor activity. The total jobs impact reached 100,392 in 2023, one of every 18 jobs in the state.