State of the State 2025: More events, venues set for Arkansas tourism industry

by Tina Alvey Dale (tdale@talkbusiness.net) 1,164 views 

Arkansas tourism grew to a $9.9 billion industry in 2024 and the Arkansas Department of Parks, Heritage and Tourism is expecting business and tourism travel growth to continue in 2025.

A study conducted by Tourism Economics with input from DK Shifflet and released by the Department of Parks, Heritage and Tourism in September says 50.7 million people visited Arkansas in calendar year 2023, which is an increase of 17.1% from 2022 when 48.3 million people came to The Natural State.

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, which led the industry to a $9.9 billion industry and solidifying its position as Arkansas’ second largest economic driver.

“The Arkansas Department of Parks, Heritage and Tourism continues to support and collaborate with entities across the state, we have an exciting 2025 ahead for The Natural State,” said Shea Lewis, secretary of the Arkansas Department of Parks, Heritage and Tourism.

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, which Lewis said is largely responsible for the industry’s continued growth.

Shea Lewis

Overall, visitor spending reached $806 million during the year. Of the total, $574 million were for state taxes while the remaining $232 million were local collections.

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%. The total economic impact of the industry, which includes a $6.8 billion indirect and induced impact, was $16.8 billion, which is 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.

In 2025, tourism officials have said the Arkansas Department of Parks system will see major developments, including progress on a downhill mountain bike park in Mena, major renovations at the park lodge of Petit Jean State Park, completion the Arkansas Delta Heritage State Trail, State Park’s development of an 84.5-mile-long trail through the Delta and across the White and Arkansas rivers, and development on the Maumelle-Pinnacles Outdoor Recreation Master Plan.

Opera in the Ozarks is scheduled to open in the late spring/early summer.

“This new theater facility, located near Route 62 in Eureka Springs, will help attract a new generation of aspiring performers to the Ozark community,” Lewis said.

Arkansas also is home to unique events that celebrate diverse regions and people.

“From the Pecan Festival in Keo to the King Biscuit Blues Festival in Historic Helena-West Helena, we continue to see our events highlight Arkansas’ history and contribute to a thriving experience for Arkansans and visitors alike,” Lewis said.

In May, Hot Springs will host the BFL All-American Championship on Lake Hamilton. The second annual Arkansas Graveler will take place June 3-8. Preparation also are underway for America 250 Celebration in 2026, Lewis said.

Crystal Bridges Museum of American Art in Bentonville plans to complete its construction that increased the building size by 50% and offer another 114,000 square feet of galleries, studios, dining options, and more.

Lewis said the parks, heritage and tourism department will work throughout the year to enhance its marketing approach.

“We have implemented a refreshed brand for The Natural State and are working to grow awareness of the state as a premiere destination for year-round travel and outdoor recreation,” he said. “Our goal is to grow visitation to the state throughout the year. We continue to expand and refine our marketing to reach new markets and demographics. Arkansas’ seasons provide opportunities to experience the outdoors every month of the year. With our strategic year-round marketing, we are striving to support the travel and tourism industry during the winter and early spring in addition to the historical major travel seasons of summer and fall.”

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.

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