Arkansas Tourism Ticker: 2% tourism tax revenue declines in early 2025

Arkansas’ 2% tourism tax revenue declined almost 5% in the first four months of 2025 compared with the same period in 2024. It is the first significant decline since 2020, when the COVID-19 pandemic shut down many parts of the tourism sector.

The 2% tourism tax revenue between January and April was $7.71 million, down 4.93% compared with $8.11 million in the same period of 2024. The 2025 numbers are up against a healthy 2024 in which the tourism tax was up 4.77% compared with 2023 collections. A record for monthly 2% collections was set in June 2024 with $2.839 million.

“2025 tourism 2% tax collection data so far reflects a mix of a national patterns impacting travel such as weather disruptions and economic pressures,” said Katie Fite, chief of communications with the Arkansas Department of Parks, Heritage and Tourism.

Part of the 2% decline can be tied to the April 2024 activity surrounding the solar eclipse that traveled through the state. April 2025 2% tourism revenue was $2.163 million, 13.5% below $2.455 million in April 2024.

January-April hospitality tax collections among 17 cities surveyed for the Arkansas Tourism Ticker were up almost 10% compared with the same period in 2024.

“With overall growth in the tourism industry by nearly 10%, Arkansas remains vibrant in attracting visitors and improving the quality of life for our citizens,” said Katie Beck Moore, CEO of the Arkansas Hospitality Association. “While there was a decline in the tourism tax, this was expected when acknowledging the unprecedented event of the 2024 solar eclipse. Our leaders in hospitality continue to provide world class destinations, lodging and culinary experiences.”

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;
• 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-April 2025 Tourism Ticker report are:

• 9.8% increase
  • Hospitality tax revenue gain in January-April 2025 among 17 Arkansas cities reviewed for the Arkansas Tourism Ticker compared with the same period in 2024
• 4.93% decrease
  • Collections of Arkansas’ 2% statewide tourism tax in January-April 2025 compared with the same period in 2024
• 0.83% increase
• Gain in the monthly average of Arkansas’ tourism industry jobs in January-April 2025 compared with the same period in 2024

The combined hospitality tax revenue in the 17 cities totaled $24.976 million in January-April 2025, up 9.8% compared with $22.745 million in the same period of 2024. The gain was driven by gains in restaurant and other food service sales.

Monthly average tourism sector jobs in January-April 2025 was 129,975, up 0.83% compared with 128,900 in the same period of 2024. The sector first reached a monthly employment high of 130,500 in February during the first four months of the year. Sector jobs have fully recovered from the early days of the COVID-19 pandemic when job numbers fell to an estimated 74,200 in April 2020.

Link here for the complete January-April 2025 Arkansas Tourism Ticker.