More tourism dollars visited Arkansas in '08

Revenue from Arkansas' tourism taxes grew by 3.8 percent last year as the state attracted more conventions and meetings and the economy kept more travelers spending money close to home.

Total collections by the Arkansas Department of Parks and Tourism in 2008 grew to $12 million, from $11.6 million the year before.

Arkansas is "running against the grain nationally," said Joe David Rice, director of tourism for the department.

Several factors have worked to the state's advantage thus far, he said. The natural gas industry, active in north-central Arkansas while drilling in the Fayetteville Shale, has kept the state busy, he said. In addition, Arkansas is a drive-to destination - an option that becomes more attractive when a family has less money to spend.

People are "heading out, almost impulsively," Rice said, noting that the state's welcome centers are seeing more walk-ins. "They're not making plans two to three months out."

An increased focus on snagging convention and meeting business has also proved a boon, according to convention and visitors bureaus in metro areas across the state.

H.G. Parsa, food service and lodging management chairman for the Rosen College of Hospitality Management at the University of Central Florida in Orlando, said that Little Rock and other larger cities in Arkansas are considered "second-tier" destinations for convention and meeting business, but that makes them a big draw for the region when times are tougher.

"People travel within the region," he said.

Still, this year, "that may be a little down, no question about it."

Sebastian County saw one of the biggest increases in tourism tax revenue in 2008, up 13.5 percent to $417,508 from $367,986 in 2007.

Fort Smith Advertising and Promotion Commission Executive Director Claude Legris said that a portion of his county's collection increase was due to hail damage in spring 2008. There was a spike in collections because of adjusters and insurance representatives who stayed in Fort Smith for a short time after the damage, he said.

The city also attracted new conventions, including a Harley Owners' Group motorcycle rally.

"In speaking with the hotel general managers in the community, they think that the group business will be much more important to us this year," Legris said.

One meeting that will help keep business from falling in 2009 is a big regional event held by Jehovah's Witnesses, he said.

"We may not see as much of a dip" because of that meeting and others, he added.

In Northwest Arkansas, Rogers also saw its numbers lifted by a number of meetings and conventions in the area, said Tom Galyon, executive director of the Rogers Convention and Visitors Bureau. That included the Poultry Federation's annual Poultry Festival and Leadership Training for Christ's Great Plains Convention.

Revenue from tourism taxes in Rogers was up 12 percent in 2008.

"Who knows?" he added when asked about 2009. The city has quite a few meetings and conventions scheduled already, and "we anticipate that everything will be the same."

In Pulaski County, collections from the state tax rose to $2.8 million from $2.7 million, up 1.6 percent. Little Rock's collection of its 2 percent tax on restaurants and hotel rooms was up 6 percent in 2008.

Dan O'Byrne, chief executive of Little Rock's Convention and Visitors Bureau, said the uptick was largely because of an increase in conventions and meetings - including hosting an NCAA basketball tournament. Hurricanes Ike and Gustav brought evacuees to stay in hotels, and the city also made a push to collect back taxes.

Steve Arrison, director of the Hot Springs Convention and Visitor's Bureau, said collections from the city's 3 percent hospitality tax were up by 1.54 percent in 2008 while Garland County's contribution to the state's collection was down 0.4 percent, to $1.09 million.

The first true test of the new economy will be in March, he said, when spring breakers start to visit.

"Hot Springs has been positively affected because people aren't going farther," Arrison said. The city has continued advertising aggressively to try to catch regional visitors, he said.