Arkansas’ tourism sector has experienced a notable downturn, with the statewide 2% tourism tax revenue dropping nearly 5% during the first four months of 2025. This decline brought revenue down to $7.71 million from $8.11 million in the same period of 2024, marking the first significant decrease since the disruptions caused by the COVID-19 pandemic in 2020. According to the Tourism Ticker report by Talk Business & Politics, the revenue for April 2025 alone saw a sharp 13.5% decline, totaling $2.163 million, which was partly attributed to the absence of the revenue boost generated by last year’s solar eclipse.
Detailed Revenue Breakdown
While overall tourism tax revenue declined, hospitality tax collections in 17 cities showed a positive trend, increasing by 9.8% to reach $24.976 million. This growth was largely driven by a 13.6% rise in restaurant sales. Conversely, hotel taxes saw a slight reduction, decreasing 2.45% to $5.26 million.
Employment within the tourism sector also saw modest growth, averaging 129,975 jobs from January to April 2025, which represents a 0.83% increase from 128,900 in the same period of 2024. This figure indicates a full recovery from the pandemic lows of 74,200 jobs recorded in April 2020.
Regional Employment Trends
A closer examination of employment figures across various regions reveals mixed outcomes. In Northwest Arkansas, the job count reached 30,625, reflecting a slight increase of 0.1%. In contrast, Fort Smith reported a decrease of 0.3%, with 8,975 jobs in total. Central Arkansas saw a notable decline of 2.8%, totaling 34,125 jobs, while Memphis-West Memphis experienced a decline of 1.5%, bringing its total to 60,875 jobs. Texarkana showcased a positive trend with a 4.3% increase, totaling 6,700 jobs.
Specific city hospitality tax collections varied significantly. Bentonville experienced a substantial increase of 14.9% to $1.454 million, while Fayetteville saw a decrease of 4.8%, generating $3.118 million. Little Rock reported a modest increase of 2.4% to $6.133 million, while Hot Springs and Rogers also noted slight increases of 1.8% and 8.6%, respectively.
The Arkansas Tourism Ticker, managed by Talk Business & Politics and sponsored by the Arkansas Hospitality Association and the Arkansas Department of Parks, Heritage and Tourism, diligently tracks hospitality tax collections, tourism employment, and the statewide tourism tax. This recent report highlights the challenges and shifts facing Arkansas’s tourism industry as it continues to navigate a post-pandemic landscape.
