Arkansas Tourism Ticker: Tourism tax revenue sets new record in June
Arkansas’ 2% tourism tax revenue between January and June was $13.513 million, up 6.1% compared with the $12.74 million in the same period of 2023. Revenue in each of the first six months of 2024 set a new record, with those gains compared to record numbers in 2023.
A record for monthly 2% collections was set in June with $2.839 million.
Of the top five counties in terms of 2% tax collections, only Pulaski County posted a decline (down 2.87%), with Washington County posting the largest percentage increase at 15.08%.
The tourism tax revenue in 2023 was $25.446 million, up 5.8% compared with the $24.049 million in 2023. Revenue in each month of 2023 set a new record, with those gains compared to record numbers in 2023.
January-June hospitality tax collections among 17 cities surveyed for the Arkansas Tourism Ticker were up 4.2% compared with the same period in 2023.
The Arkansas Tourism Ticker is managed by Talk Business & Politics, and sponsored by the Arkansas Hospitality Association and the Arkansas Department of Parks, Heritage, and Tourism. 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-June 2024 Tourism Ticker report are:
• 4.2% increase
Hospitality tax revenue in January-June 2024 among 17 Arkansas cities reviewed for the Arkansas Tourism Ticker compared with the same period in 2023
• 6.1% increase
Collections of Arkansas’ 2% statewide tourism tax in January-June 2024 compared with the same period in 2023
• 0.05% decline
Dip in monthly average of Arkansas’ tourism industry jobs in January-June 2024 compared with the same period in 2023
The combined hospitality tax collections in the 17 cities totaled $36.123 million in January-June 2024, up 4.2% compared with the $34.672 million in the same period of 2023. Monthly average tourism sector jobs in January-June 2024 was 128,840, down marginally, or 0.05% compared with 128,900 in the same period of 2023. The sector reached record monthly employment of 130,200 in March.
Steve Arrison, CEO of Visit Hot Springs, said the city is seeing pre-pandemic visitor trends, but said short-term rentals outside the city lowers hotel traffic. He said the number of short-term rentals in the Hot Springs area is up 11% compared to the same period in 2023.
“We are settling into a pattern of collections that we saw before the pandemic with collection growths of 3% to 6% the norm with record setting growth in collections a thing of the past,” Arrison said. “Short-term rentals continue to impact our hotel collections, especially in the summer months, with the large supply of short-term rentals that are on or near the lake outside of our collection area.”
Link here for a PDF of the complete Arkansas Tourism Ticker report. (The January-June report was delayed by a month because of a delay in receiving hospitality tax data from one of the 17 cities.)