Nevada County Picayune and Gurdon Times Newspaper Archive

Legislative Update

Tourism is a major industry in Arkansas and in 1995 continued to grow at a pace exceeding that of the national travel industry.

The 1995-96 Arkansas Tourism Report, published earlier this year by the State Department of Parks and Tourism and the Parks, Recreation and Travael Commissison, describes 1995 as a year in which the tourism industry "experienced another year of growth."

The report estimated 1995 travel expenditures in Arkansas totaled a little more than $3 billion, up 4.7 percent from the previous year, while the number of visitors topped 18 million, an increase of 1.9 percent from 1994. As a comparison, nation travel volume grew by three percent in 1995.

The report cites two factors in the recent success of Arkansas tourism efforts. One is a marketing program funded by a special tourism tax approved by then Governor Clinton in 1989. The two percent sales tax on tourism- related activities provides the money necessary for tourism officials "to successfully compete with surrounding states for potential visitors in the expensive magazine, television and newspaper markets," the tourism report said.

Another contributing factor to Arkansas's tourism success is the fact that the state has a native son in the White House, which should produce favorable effects for years to come, the report says.

Estimates from the report provide a breakdown of travel patterns in Arkansas and offer more details about the economic impact of the tourism industry. In 1995, U.S. travelers made more than 18 million person-trips to or through Arkansas and spent an aveaage of $168.95 per trip. The resulting $3 billion plus in travel expenditures generated state tax revenues of $137 million and produced local tax revenues of another $58 million.

Travel expenditures in Arkansas also helped support a travel industry that employed 46,891 people and supported a payroll of $526 million in wages and salaries.

The number of visitors to Arkansas and the tourism industry have grown steadily in recent years. In 1977, for example, travel expenditures totaled just over $1 billion and the number of person-trips reached 13.6 million. The 4.5 million rise in the number of visitors between 1977 and 1995 represents an increase of 33 percent.

Arkansas is well positioned to continue its steady growth as destination for travel and tourism. Figures from the 1995 Arkansas Tourism Report provide evidence of a positive trend that officials hope will continue for decades to come.

I recently attended an Energy Council Meeting in Little Rock. The council met to discuss trends in the energy industry.

Information regarding how other states regulate this industry is useful in comparing Arkansas' methods.

The council's goal is to improve Arkansas' energy programs in a manner that will reduce energy costs to consumers and protect the environment.

If you have any questions or comments on these or other topics please call me at 246-4141.

--Percy Malone