Arkansas' tourism industry took a tumble in 2020 as the coronavirus took hold in the state, resulting in fewer tax dollars generated than usual, according to data released by the Arkansas Department of Parks, Heritage and Tourism.
As travel restrictions and behavior changes limited tourism activity across the state, visitor spending fell more than 25%, to $6 billion, compared with the previous year. That spending generated about $364 million in state tax revenue, a 21% decline. Local tax revenue and revenue from the state's 2% tourism tax also declined.
Areas most affected by tourism declines were Benton, Washington and Pulaski counties.
Stacy Hurst, secretary of Arkansas Department of Parks, Heritage and Tourism, said she was proud of the results given the circumstances, but hopes not to repeat them again.
"The data reflects the hard work and dedicated commitment of our industry to successfully navigate challenges most of us never dreamed we would experience," Hurst said in a report released Monday.
Before the pandemic, visitor spending was trending in the right direction. It had increased 16.5% over four years, peaking at $8 billion in 2019. But with closings and restrictions in place, the number of visitors declined. Welcome centers assisted 627,274 visitors in 2020, a 42% difference from the previous year.
Despite lackluster results, Hurst said the state outperformed many of its competitor markets. She commended Gov. Asa Hutchinson for that and his role in helping Arkansas navigate the pandemic.
"[He] ensured that the state did not completely shut down, and his response was key in enabling our industry to remain open for business," Hurst said in a written statement.
During 2020, more than half of visitor spending, or $3.5 million, went to food and beverage or transportation, while the rest went to recreation, retail and lodging, or less than $1 million per segment.
Approximately 32.4 million visitors stayed for a day or overnight, data show, a 37% decrease from the previous year. Most came for leisure, while a quarter of them came for business reasons.
Payroll and employment numbers also declined. The number of jobs decreased 23% to 51,882, resulting in income of $1.4 billion.
Although numbers were predictably down during 2020, Hurst and Travis Napper, director of Arkansas Tourism, said they are already seeing numbers rebound and trend in the right direction. That has been attributed in part to the state's scenic outdoor attractions and increased out-of-state marketing, an effort that was put on hold through the summer of 2020.
"More than ever, people are looking for safe outdoor activities, and they clearly have seen that Arkansas is the place to go," he said in the report. "I look forward to another year of growth and success. We have so much to look forward to."
According to the report, each Arkansas household would have to pay $590 in additional taxes to cover the amount of state and local tourism tax revenue generated by visitors in 2020.