Tourism tax revenue in Arkansas has experienced a notable decline in the early months of 2025, marking a shift in the state’s recovery trajectory from the impacts of the COVID-19 pandemic. According to the latest report from Talk Business & Politics, the statewide 2% tourism tax revenue decreased by nearly 5%, falling from $8.11 million in the first four months of 2024 to $7.71 million in the same period of 2025.
The report highlights that revenue for April 2025 alone dropped significantly by 13.5%, amounting to $2.163 million. This decline is partly attributed to the absence of the boost generated by last year’s solar eclipse, which had a substantial positive impact on tourism activities.
Mixed Performance Across Hospitality Sectors
Despite the decline in tourism tax revenue, hospitality tax collections in 17 cities within the state rose by 9.8%, reaching $24.976 million. A significant driver of this increase was a 13.6% rise in restaurant sales, indicating a robust dining sector. However, hotel tax revenues faced challenges, decreasing by 2.45% to $5.26 million.
Employment figures in the tourism sector saw a slight increase, averaging 129,975 jobs from January to April 2025, which is a 0.83% rise from 128,900 jobs during the same period in 2024. This figure reflects a complete recovery from pandemic lows of 74,200 jobs in April 2020.
Regional Insights and City Performance
Performance varied across different regions within Arkansas. For instance, Northwest Arkansas reported 30,625 jobs, reflecting a marginal increase of 0.1%. In contrast, Central Arkansas saw a decline of 2.8%, with 34,125 jobs reported. Other regional employment statistics included Fort Smith with 8,975 jobs (down 0.3%) and Memphis-West Memphis with 60,875 jobs (down 1.5%). Texarkana was an outlier, showing a robust growth of 4.3% to 6,700 jobs.
City-specific hospitality tax collections also varied. Bentonville reported a significant increase to $1.454 million (up 14.9%), while Fayetteville experienced a decline to $3.118 million (down 4.8%). Little Rock’s collections rose by 2.4%, reaching $6.133 million, while Hot Springs and Rogers also reported modest increases.
The findings from the Arkansas Tourism Ticker report, managed by Talk Business & Politics and sponsored by the Arkansas Hospitality Association and the Arkansas Department of Parks, Heritage and Tourism, provide critical insights into the state’s tourism landscape. These statistics reflect the ongoing recovery efforts and dynamics within the hospitality sector, highlighting areas of growth and concern as Arkansas navigates its post-pandemic tourism strategy.
The full report offers more detailed analysis and insights into the current state of tourism in Arkansas.
