Tourism tax revenue in Arkansas experienced a notable decline of nearly 5% in the first four months of 2025. According to the latest report from Talk Business & Politics, the statewide 2% tourism tax revenue dropped to $7.71 million from $8.11 million during the same period in 2024. This downturn marks the first significant decrease since the disruptions caused by the COVID-19 pandemic in 2020.
The report highlights that revenue for April 2025 alone fell by 13.5% to $2.163 million, a decline partly attributed to the absence of the spike in tourism activity associated with last year’s solar eclipse.
Hospitality Trends and Employment Data
Despite the overall drop in tourism tax revenue, hospitality tax collections in 17 cities across Arkansas rose by 9.8% to reach $24.976 million. This increase was primarily driven by a 13.6% surge in restaurant sales. However, hotel tax collections saw a slight decrease of 2.45%, totaling $5.26 million.
Employment in the tourism sector showed modest growth, with an average of 129,975 jobs reported from January to April 2025. This figure represents an increase of 0.83% from 128,900 jobs in the same period the previous year and indicates a full recovery from the pandemic lows of 74,200 jobs recorded in April 2020.
Regional Performance Overview
Looking at regional data, employment changes varied significantly across different areas:
- Northwest Arkansas: 30,625 jobs (+0.1%)
- Fort Smith: 8,975 jobs (-0.3%)
- Central Arkansas: 34,125 jobs (-2.8%)
- Memphis-West Memphis: 60,875 jobs (-1.5%)
- Texarkana: 6,700 jobs (+4.3%)
In terms of city-specific hospitality tax collections, notable figures include:
- Bentonville: $1.454 million (+14.9%)
- Fayetteville: $3.118 million (-4.8%)
- Little Rock: $6.133 million (+2.4%)
- Hot Springs: $3.197 million (+1.8%)
- Rogers: $436,535 (+8.6%)
- Texarkana: $452,792 (-0.9%)
The Arkansas Tourism Ticker, managed by Talk Business & Politics and sponsored by both the Arkansas Hospitality Association and the Arkansas Department of Parks, Heritage and Tourism, tracks hospitality tax collections, tourism employment, and the statewide tourism tax. This report provides valuable insights into the health of the tourism sector in Arkansas, particularly as it navigates the post-pandemic landscape.
