Tourism tax revenue in Arkansas experienced a notable decline of nearly 5% during the first four months of 2025, according to the latest report from Talk Business & Politics. The state’s 2% tourism tax revenue fell 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.
April 2025 saw a particularly sharp decline, with revenue dropping 13.5% to $2.163 million. This downturn is partly attributed to the lack of the exceptional boost experienced last year during the solar eclipse, which had significantly increased tourist activity.
Hospitality Tax Trends and Employment Growth
Despite the decrease in tourism tax revenue, hospitality tax collections in 17 cities across Arkansas rose 9.8%, reaching $24.976 million. This increase was largely driven by a 13.6% surge in restaurant sales. In contrast, hotel taxes decreased by 2.45% to $5.26 million.
Employment in the tourism sector showed modest growth, averaging 129,975 jobs from January to April 2025. This figure represents an increase of 0.83% from 128,900 jobs in 2024, and a full recovery from the pandemic lows of 74,200 jobs recorded in April 2020.
Regional highlights illustrate varied employment trends across the state during this period:
– **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%)
Notably, Mercy Home Health in Fort Smith received a dual 5-star CMS rating, reflecting excellence in healthcare services, which may contribute to local employment stability.
City-Specific Hospitality Tax Collections
A closer look at hospitality tax collections reveals a mixed performance across major cities:
– **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 the Arkansas Hospitality Association and the Arkansas Department of Parks, Heritage and Tourism, tracks hospitality tax collections, tourism employment, and the statewide 2% tourism tax. The full report provides deeper insights into these trends, reflecting the ongoing evolution of Arkansas’s tourism landscape.