BENTONVILLE — Collection for the Advertising and Promotion Commission have increased more than $1.2 million since the group first started marketing the city 16 year ago.
The commission collects a 2 percent tax on receipts from hotels and motels and a 1 percent tax on prepared food and nonalcoholic beverages. The collection totaled just $280,280 during the first year of the commission in 1996. The 2012 total was $1,498,083.
Kalene Griffith, director of the city’s Convention and Visitors Bureau, said work has shifted from getting Bentonville’s name out to now managing all the interest. Part of that interest is a product of the November 2011 opening of the Crystal Bridges Museum of American Art, she said.
At A Glance
Business Developments
Openings
• 21c Museum Hotel, 200 N.E. A St.
• The Hive, 200 N.E. A St.
• Tokyo Sushi, 2308 S.E. 28th St., Suite 5
• Emma Ruths, 3404 S.E. Macy Road, Suite 20
Source: Bentonville Advertising and Promotion Commission
The steady increase in collection started long before the museum was announced. Tax collection grew between 15 and 30 percent each year from 1996 to 2000. The early 2000s saw growth each year from 7 to 12 percent.
The Walmart Home Office and the Walmart Visitors Center brought visitors to the city during this period, but there were far fewer restaurants to bring in commission dollars.
Collection hit $1 million in 2006, but a slight decrease was in store in 2008 as the national economy suffered. Recent years showed growth of 9 percent in 2011 and 13 percent in 2012.
Each month of 2012 had collection of more than $100,000 for the first time. Previous years always showed sub-$100,000 collection over the winter months.
Griffith said recent growth can be attributed to the Crystal Bridges effect. The museum served as a catalyst for new restaurants and lodging, while also getting the city’s name out on a national level.
“While we can’t say that 600,000 people visited Bentonville last year, but 600,000 people visited the museum,” Griffith said.
The Convention and Visitors Bureau has a new strategy that has paid dividends in tourism visits, Griffith said. The bureau has engaged in more niche marketing instead of one-size-fits-all ad barrages. The bureau tailors advertising to key groups like sports or art aficionados.
Since the opening of the museum, the city is also attracting group tours and groups of travel writers. The travel writers then market the city in editorial content, providing free advertising for the bureau. Griffith said five travel writer tours plan to visit Bentonville between February and May.
The numbers were presented at the commission’s monthly meeting Thursday at the Convention and Visitors Bureau. Collections from restaurants in December came in about $4,000 below the budget of $87,626.
Johnna Duncan, finance coordinator, said collection should hit budget once late payments are received.
The group is planning a new marketing campaign based on a “Be Inspired” theme. The ads focus on getting inspired through art, sports or culinary destinations. The ads are planned for one publication in central Arkansas so far, said Blair Cromwell, vice president of communications.
“What were doing now is pretty inspirational,” Griffith said.
The bureau is also teaming up with Tulsa and Little Rock to launch a campaign inviting visitors to “the heArt of America.” The campaign focuses on museums, libraries and gardens in each of the three cities.