Published on August 29, 2025
By: Tuhin Sarkar
Arkansas joins California, Florida and Hawaii in a tourism crisis this year, but the shocking rise of day-trippers changes everything. Tourism tax collections are falling, jobs in leisure and hospitality are under pressure, and revenue streams are tightening. Yet, demand for quick visits and shorter stays is soaring, keeping restaurants, attractions and city centres alive.
Arkansas unite with California, Florida and Hawaii in this mixed picture, where challenges remain but opportunities grow. Domestic travellers are choosing affordable day trips over longer, costly holidays, shifting the balance of spending. This autumn, the tourism crisis shows two faces—loss in tax revenue, but surprising strength in day-tripper demand.

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Arkansas tourism is facing its first major decline in statewide 2% tax revenue since 2020. Between January and April 2025, the tax collections fell almost 5% compared with the same period in 2024. Yet, hospitality taxes in major cities rose nearly 10%, proving that the state’s travel industry remains vibrant. The key question is whether this tax dip signals deeper trouble or is simply a result of one-off events like the 2024 solar eclipse. The numbers reveal a balanced story of challenge and resilience in Arkansas tourism.

Tax Revenue Decline Raises Questions

The statewide 2% tourism tax is a major indicator of Arkansas tourism health. In the first four months of 2025, collections totalled $7.71 million. This was a 4.93% drop from $8.11 million collected in the same period of 2024. It marks the first significant decline since 2020, when COVID-19 shut down travel. The fall follows a strong 2024 when tourism tax revenue rose 4.77% from 2023. A record had even been set in June 2024, with $2.839 million collected in a single month, showing how sudden the change appears.

Impact of the 2024 Solar Eclipse

The April 2024 solar eclipse boosted Arkansas tourism with thousands of visitors flooding the state. This one-time event inflated tax revenues for that month, creating a high benchmark. In April 2025, collections dropped 13.5% compared to April 2024. The tax revenue was $2.163 million, down from $2.455 million. Without the eclipse effect, the year-to-year comparison would look less severe. State officials stress that such external factors must be considered when judging tourism trends. The eclipse proved tourism’s potential to attract huge numbers, even though 2025 is showing a return to normal demand levels.

Weather and Economic Pressures

Tourism officials note that weather disruptions and broader economic pressures also played roles in the 2025 decline. Severe storms, inflationary pressures, and shifting travel habits have all influenced spending. National patterns show similar dips across other states, suggesting Arkansas is not alone in facing these headwinds. The resilience lies in the fact that hospitality tax collections and employment numbers are still rising. This suggests that while certain segments of the travel economy slowed, others remained strong. Restaurants, hotels, and local attractions continue to benefit even when statewide tax revenue sees a fall.

Hospitality Taxes Paint a Brighter Picture

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While the statewide tourism tax dipped, hospitality tax collections tell a much more positive story. The Arkansas Tourism Ticker shows hospitality taxes in 17 key cities rose nearly 10% in the first four months of 2025 compared with the same period in 2024. The combined hospitality revenue was $24.976 million, up from $22.745 million. The growth was fuelled mainly by restaurant and food service sales. These numbers show that Arkansans and visitors are still eating out, booking rooms, and enjoying city-level attractions even if the statewide tax measure suggests a slowdown.

Growth in Employment Supports Industry Strength

Tourism jobs also show resilience in Arkansas. Between January and April 2025, the monthly average of tourism employment was 129,975. That is an increase of 0.83% compared with 128,900 jobs in the same period of 2024. The sector even hit a high of 130,500 jobs in February 2025, proving strong seasonal demand. This represents a full recovery from the pandemic low of April 2020 when jobs in the sector fell to just 74,200. With employment growth stable, Arkansas tourism continues to provide livelihoods and attract new talent into hospitality and travel services.

Industry Leaders Highlight Resilience

Tourism leaders in Arkansas are cautious but optimistic. Katie Fite of the Department of Parks, Heritage and Tourism says the 2025 tax collection reflects a mix of national pressures. She cites weather disruptions and economic factors as part of the story. Katie Beck Moore of the Arkansas Hospitality Association stresses that the tax dip was expected, given the extraordinary boost from the eclipse in 2024. She highlights that overall growth of nearly 10% in hospitality revenue shows the industry is vibrant. For citizens and visitors, Arkansas continues to provide world-class attractions, food, and lodging.

Long-Term Recovery Still on Track

The broader trajectory for Arkansas tourism remains positive. The industry is far stronger than in the years following COVID-19. With jobs fully recovered, hospitality spending rising, and city-level revenues breaking records, the sector continues to expand. The statewide tourism tax decline is being treated as an exception, influenced by unique events and national trends. If economic conditions improve and weather disruptions ease, Arkansas is positioned to regain steady growth. For now, leaders remain focused on sustaining visitor confidence and building on the resilience already shown in 2025.
The remainder of 2025 will be crucial for Arkansas tourism. The autumn season, with festivals, sports, and cultural events, will bring new visitors. Marketing campaigns are being planned to attract both regional and national tourists. Infrastructure investment, better facilities, and stronger partnerships between cities are expected to support growth. While the first four months saw a tax dip, the coming months could balance the picture. By the end of 2025, Arkansas may still post healthy tourism figures, proving that the state remains one of the most attractive and resilient destinations in the United States.
Tourism in the United States is showing a complex picture in 2025. Some states are recording record tax revenues, new job growth, and surging visitor numbers. Others are seeing declines linked to international weakness, economic pressures, or unusual one-off events. National hotel performance is flat, with occupancy and spending slightly down. Yet local success stories prove that new attractions, events, and strong domestic travel are keeping the industry resilient. This report looks at state-level tourism trends in 2025, highlighting where growth is booming, where declines are happening, and why.

Arkansas Tourism 2025 Update: Record Growth, New Challenges and Future Promise

Visitors and Spending Reach Record Levels

Arkansas tourism has never been more important. In 2024, the state welcomed 52 million visitors, a 2.6% increase from the year before. These travellers spent $10.3 billion, which created $17.4 billion in total economic activity. The industry supported over 71,000 jobs and added more than $834 million in taxes to state and local budgets. This shows how deeply travel and tourism fuel the Arkansas economy.
Food and transport took the biggest share of visitor spending. Restaurants, cafés and local eateries accounted for nearly one-third of spending, while road and air travel also made up a large part. Lodging, shopping, and entertainment added more to the mix, showing that Arkansas offers a balanced tourism economy.

Tax and Job Trends in 2025

The first months of 2025 brought a mixed picture. The state’s 2% tourism development tax slipped almost 5% year-on-year between January and April. This drop was not a sign of falling demand but came from tough comparisons with the April 2024 solar eclipse, which had brought thousands of visitors. By contrast, local city hospitality taxes jumped nearly 10%, showing strong restaurant and hotel activity. Tourism jobs also inched higher, proving that the sector remains a stable employer.

The Outdoors as Arkansas’ Growth Engine

Arkansas is building its future on the power of the outdoors. A 2025 study showed that outdoor recreation added $7.3 billion to GDP and supported nearly 68,000 jobs. Since 2019, the state has led the nation in growth of outdoor-based facilities and construction. Visitors are drawn to cycling, hiking, hunting, and fishing, while state parks alone attracted 7.7 million visits in 2024.
New projects are underway. In Mena, work has begun on one of the country’s largest lift-served mountain bike parks. In Bella Vista, another bike park with a chairlift is set to open in 2026. The Delta Heritage Trail, backed by a federal grant, is close to completion and will stretch more than 80 miles, perfect for multi-day bike journeys. These projects promise to turn Arkansas into a premier outdoor destination.

Air Travel and Cultural Anchors

Air access is also improving. Northwest Arkansas National Airport handled 1.14 million passengers in 2024, a record, and continues to grow in 2025 with terminal upgrades. This strengthens the state’s connectivity to the rest of the US.
Cultural attractions are also expanding. The Crystal Bridges Museum of American Art in Bentonville is undergoing a major expansion, due in 2026. Road-trip tourism will get a boost too, with Buc-ee’s opening its first massive travel plazas in the state.

Outlook for 2025 and Beyond

The short-term tax dip in 2025 reflects one-time factors, not a decline in tourism demand. Rising local taxes, job growth, and packed events show strong momentum. With new outdoor parks, cultural sites, and better air links, Arkansas is set to welcome even more visitors in the years ahead. Tourism here is not only surviving; it is becoming the state’s strongest growth story.

National Travel Trends in 2025

Across the United States, tourism is being carried by strong domestic travel. Families are taking road trips and flights thanks to cheaper airfares and lower petrol prices. However, international tourism is weaker. Overseas arrivals have dropped in 2025, with spending down more than 4%. This is a blow for states like California, New York, and Nevada that rely heavily on long-haul international visitors.
Hotels across the country are also under pressure. Data from STR shows that hotel occupancy in June 2025 was 68.5%, down 1.7 percentage points from the year before. Average daily rates rose only 0.4%, while revenue per available room fell 1.2%. Analysts have lowered their forecast for the rest of the year, showing how the market is cooling after years of strong recovery.

Florida Tourism Gains with Orlando’s Boom

Florida is a standout success in 2025. Orange County, home to Orlando’s theme parks, reported record tourist tax collections in May and June. The Tourist Development Tax revenue reached $33.7 million in June 2025, up more than 10% compared with the previous year. This surge is linked to the opening of Universal’s Epic Universe in May, which is drawing millions of new visitors.
Florida’s hospitality sector is also supporting employment. The state’s leisure and hospitality workforce reached 1.33 million in July 2025, close to record highs. These jobs cover hotels, restaurants, attractions, and travel services. The steady growth proves that Florida remains one of the strongest tourism markets in the country, with both domestic and international demand feeding its success.

Arkansas Tourism Slows After Eclipse Boost

Arkansas is one of the few states to report a decline in its statewide tourism tax. Between January and April 2025, collections from the 2% tourism tax fell 4.93% compared with the same period in 2024. This marks the first significant drop since 2020. The decline is partly because April 2024 saw a huge boost from the solar eclipse that crossed the state. Without that extraordinary event, the year-on-year comparison looks weaker.
Even so, Arkansas cities are thriving. Hospitality taxes in 17 cities were up almost 10% in early 2025, showing strong spending in restaurants and hotels. Jobs in the tourism sector also increased slightly, averaging nearly 130,000 in the first four months of the year. This balance shows that Arkansas remains healthy in tourism, even if one tax measure is temporarily down.

Nevada Faces Las Vegas Slowdown

Nevada, and especially Las Vegas, is seeing challenges in 2025. Visitor numbers in Las Vegas fell more than 11% in June compared with June 2024. Occupancy was down 6.5 percentage points, and average hotel rates fell 6.6%. These are steep declines for a city that usually reports strong performance.
Officials at the Las Vegas Convention and Visitors Authority cite weaker consumer confidence and economic uncertainty as key reasons. Convention schedules also played a role, with fewer big meetings in June. This shows how sensitive Las Vegas is to both the economy and the events calendar. While big weekends and concerts still draw crowds, slower months reveal the impact of cautious consumer spending.

California Feels International Weakness

California’s tourism outlook for 2025 is softer than expected. Visit California projects that total visitation may fall by around 1% compared with 2024. The main reason is international weakness. With overseas arrivals down nationwide, California is losing some of its long-haul traffic, especially from Asia and Europe.
Domestic travel remains strong, with families visiting beaches, wine regions, and theme parks. Yet, the state’s high reliance on global markets makes it more exposed. Analysts say that as long as visa issues, currency pressures, and economic uncertainty continue, California will find it harder to grow its international visitor base.

New York Tourism Holds Steady

New York remains a global magnet despite facing international pressures. In 2025, New York City is still attracting millions of visitors for Broadway, museums, shopping, and events. Employment in the state’s leisure and hospitality sector grew by more than 13,000 jobs compared with last year. This proves the city’s resilience in hosting conventions, concerts, and cultural festivals.
However, forecasts have been trimmed due to weaker inbound tourism. The loss of some overseas spend is noticeable, but domestic demand is filling the gap. New York is still expected to host more than 64 million visitors in 2025, near its pre-pandemic highs.

Hawaii Adjusts to Policy Changes

Hawaii remains a top dream destination but faces new pressures. In May 2025, state leaders approved an increase in the transient accommodations tax to fund climate resilience. The tax hike takes effect in 2026, but travel operators are already preparing for higher costs. Visitors may shorten their trips or adjust budgets when prices rise further.
At the same time, Hawaii’s heavy reliance on international markets makes it vulnerable in 2025. With spending from overseas tourists falling, the islands must depend more on domestic travel. Beaches, culture, and natural attractions continue to draw millions, but cost pressures could slow growth.

Colorado Balances Growth and Day-Trippers

Colorado enjoyed record tourism in 2024, but 2025 shows some mixed results. Mountain towns report more day-trippers and fewer overnight stays. This lowers per-visitor tax revenue since day visits generate less spending on lodging and meals.
International demand is also weaker, affecting ski resorts and cities that attract long-haul visitors. Still, Colorado’s outdoor attractions remain popular. Domestic families are visiting national parks, hiking trails, and Denver’s cultural events. The state’s tourism remains vibrant, but the mix of visitors is shifting in ways that affect spending patterns.

Why Tourism Declines in Some States

The reasons for tourism decline in 2025 are linked to several factors. International softness is the biggest driver, with overseas visitor arrivals and spending down across the United States. Policy issues like visa delays and higher taxes also create barriers. Economic uncertainty and weaker consumer confidence are causing shorter stays and less spending in cities like Las Vegas. Weather disruptions add another layer, making travel plans less predictable.
In many cases, the declines are not structural but linked to one-off events. Arkansas’s drop is due to the eclipse comparison, while Nevada’s slowdown comes from convention timing. These examples show that not all declines point to long-term weakness.

Why Growth Continues in Other States

States that are thriving in 2025 share some common features. Florida has benefited from a massive new attraction with Epic Universe. Domestic travel remains strong in Orlando, keeping hotels and restaurants busy. New York, Nashville, and Chicago are riding the wave of major events, concerts, and festivals. These bring spikes in visitor spending even when international arrivals are soft.
Cities and states that diversify their attractions, invest in infrastructure, and promote domestic tourism are seeing steady growth. Hospitality taxes and job gains confirm that visitors are still spending, even if some global markets are slower.

The Road Ahead for US Tourism

As 2025 continues, the United States tourism industry will face both opportunities and risks. Domestic travel demand looks strong thanks to lower costs and a robust events calendar. States with big anchors, like Florida and New York, will continue to see growth. At the same time, states reliant on international tourism, like California, Nevada, and Hawaii, will need to adjust strategies.
Policymakers and tourism boards must focus on easing barriers for international travellers, supporting sustainable growth, and investing in attractions that keep visitors engaged. The data shows that U.S. tourism remains resilient, but growth is not evenly spread. Success will depend on how each state adapts to the changing travel landscape.

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Tags: Arkansas, California, florida, hawaii, Tourism

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