Tourism is now a $9.9 billion industry in Arkansas, an economic impact study commissioned by the Arkansas Department of Parks, Heritage and Tourism found.
According to the study, which was conducted by Tourism Economics with input from DK Shifflet, the Natural State received 50.7 million visitors during 2023, an increase of about 17 percent from 2022, which saw 48.3 million visitors.
The new visitors spent an additional $700 million, pushing the industry toward the $10 billion mark and solidifying its position as the second largest economic driver in Arkansas.
“Tourism is our state’s second largest industry, and when it grows, Arkansas’ entire economy grows with it,” Gov. Sarah Huckabee Sanders said. “I’m proud our investments in — and promotion of — Arkansas’ outdoor recreation are paying off, and I’m glad we’re welcoming more visitors than ever to the Natural State.”
Arkansas State Parks recorded 8.4 million visitors in 2023, and 4.3 million people visited National Park Service sites in the state last year.
“It is undeniable that Arkansas is now a premier destination, especially for outdoor recreation, because we offer a year-round outdoor experience not found elsewhere,” said Shea Lewis, secretary of the Arkansas Department of Parks, Heritage and Tourism.
Visitors spent the most on transportation, food and lodging last year. The study found transportation accounted for the largest portion of overall visitor spending at 30 percent, or $3 billion, in total. Food purchases made up 28 percent, and lodging made up 17 percent of total spending.
According to the Arkansas Department of Finance and Administration, collections for the state’s 2 percent Tourism Reinvestment Tax increased 5 percent to $25.8 million. The funds are allocated for the marketing and promotion of tourism in Arkansas, and Lewis said those promotional efforts have been key to the industry’s growth.
“Arkansas Tourism broadened its marketing footprint in 2023 to include 15 new media markets, primarily in western states but also in North Carolina and Illinois, which research accurately predicted to be opportunity markets for Arkansas,” Lewis said. “We effectively communicated Arkansas’ point of difference in that we are a state with outdoor offerings that can be enjoyed year-round regardless of seasonality.”
The marketing focused on three distinct tourism audience segments: travel and lifestyle, outdoor enthusiasts, and hunting and fishing. According to Adara Travel Insights, the department’s digital advertising investment was directly responsible for hotel revenue of more than $68 million.
The state government collected $574 million in tax receipts from visitors in 2023, and local governments collected $232 million for a total of $806 million. According to the study, each Arkansas household would have to pay an additional $911 per year to replace the tax dollars generated by visitors.
In addition, the state’s tourism industry supported more than 70,000 jobs, an employment increase of 2.8 percent from 2022, and generated more than $2.2 billion in earnings, a 4.8 percent increase.
More than 30,000 jobs were supported by the indirect impact of visitor activity for a total job tally of more than 100,000, which accounts for nearly 1 in every 18 jobs in the state.
Beyond its direct impact, the indirect impact of tourism in the state produced an economic impact of $6.8 billion, resulting in a total economic impact of $16.8 billion, a 6.8 percent increase from 2022.
“Gov. Sanders is a strong proponent of Arkansas’ tourism industry, and she has challenged us to take our message to new audiences and make Arkansas a national and international destination,” Lewis said. “As the numbers contained within this economic impact report clearly indicate, we are making great progress toward that goal. Our marketing message and strategy is resonating with travel consumers who are finding Arkansas as a place they can enjoy all year long.”
Feature Photo: Devils Den Monument Trail
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