Arkansas’s tourism industry has reached a significant milestone, generating $9.9 billion in 2023, according to a recent economic impact study commissioned by the Arkansas Department of Parks, Heritage, and Tourism. The study, conducted by Tourism Economics with input from DK Shifflet, reported that 50.7 million people visited the state in 2023—a 17.1% increase from the previous year when 48.3 million visitors traveled to “The Natural State.”
(Report on the 2022 tourism numbers)
Arkansas State Parks saw 8.4 million visitors in 2023, while National Park Service sites welcomed 4.3 million people. This influx of visitors contributed an additional $700 million in spending, nearly pushing the tourism industry to the $10 billion mark and further cementing its role as Arkansas’s second-largest economic driver.
“Tourism is our state’s second largest industry and when it grows, Arkansas’ entire economy grows with it,” said Governor Sarah Huckabee Sanders. “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.”
Shea Lewis, Secretary of the Arkansas Department of Parks, Heritage, and Tourism, emphasized the state’s appeal to outdoor enthusiasts. “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,” he said.
The study identified transportation, food, and lodging as the highest spending categories among visitors. Transportation accounted for 30% of overall spending, totaling $3 billion, food comprised 28%, and lodging 17%.
The state’s 2% Tourism Reinvestment Tax generated $25.8 million in 2023, a 5% increase, according to the Arkansas Department of Finance and Administration. These funds are directed toward tourism marketing efforts, which Lewis credited as a key factor in 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,” said Lewis. “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 campaigns targeted three main audience segments: travel and lifestyle, outdoor enthusiasts, and hunting and fishing. According to Adara Travel Insights, the Department’s digital advertising investments generated $68.1 million in hotel revenue.
In total, visitor spending generated $806 million in tax receipts, with $574 million directed to state taxes and $232 million to local municipalities. The study estimated that each Arkansas household would need to pay an additional $911 annually to replace the visitor-generated taxes collected by the state and local governments.
The tourism sector also provided direct support for 70,026 jobs in 2023, a 2.8% increase from 2022, with total earnings reaching $2.2 billion, up 4.8%. Beyond direct contributions, the industry produced $6.8 billion in indirect and induced impact, bringing the total economic impact to $16.8 billion—a 6.8% increase over the prior year.
Visitor activity in 2023 sustained 70,026 direct jobs and supported an additional 30,365 jobs through indirect and induced effects, bringing the total employment impact to 100,392 jobs—equivalent to one in every 18 jobs across the state.
“Governor 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 noted. “As the numbers contained within this economic impact report indicate, we are making great progress toward that goal. Our marketing message and strategy is resonating with the travel consumers who are finding Arkansas as a place they can enjoy all year long.”
(All photos courtesy of the Arkansas Department of Parks, Heritage and Tourism)