Visitor spending drives $17.4 billion economic impact in Arkansas

LITTLE ROCK — Arkansas welcomed 52 million visitors in 2024, representing a 2.6 percent increase compared to the previous year. According to the latest tourism economic impact report, these visitors spent $10.3 billion, a 4.0 percent rise from 2023. This spending, combined with $7.1 billion in indirect and induced effects, resulted in a total economic impact of $17.4 billion for the state.

Governor Sarah Sanders highlighted Arkansas’s natural beauty, including its rivers, lakes, and outdoor trails, as key attractions drawing increasing numbers of tourists. She credited the Natural State Initiative with strengthening the outdoor recreation sector, which is now a major contributor to the state’s economic growth.

Tourism Economics conducted a comprehensive analysis showing that daily visitor spending reached $28.2 million in 2024. This spending supports 71,633 direct jobs, or 3.9 percent of total employment in Arkansas. Including indirect job creation, the visitor economy accounts for one in every 18 jobs statewide.

The food and beverage sector led spending growth with $3 billion in revenue, up 6.5 percent year-over-year. Retail and recreation spending increased by 5.8 percent and 4 percent respectively. Lodging expenditures rose 3.3 percent, partly due to growth in short-term rentals. Transportation spending saw a modest 0.6 percent increase as fuel prices declined.

Arkansas’s outdoor recreation economy has become a significant contributor to the state’s overall economic performance. In 2023, this sector generated $7.3 billion in economic activity and supported 68,000 jobs. Outdoor recreation now accounts for 2.5 percent of Arkansas’s GDP, surpassing agriculture. Since 2019, the outdoor recreation industry has grown by 33 percent, outpacing the national average of 27 percent.

The sector’s resilience stems from its strong industrial base, with 36 percent of outdoor-related economic value coming from manufacturing, transportation, and warehousing. Manufacturing wages in this sector average $84,600 annually, more than 20 percent above the state average. Arkansas ranks fourth nationally in GDP contribution from outdoor product manufacturing.

From 2019 to 2023, outdoor amenity construction in Arkansas expanded by 52.7 percent, the fastest rate in the country. The state also recorded the third-largest growth in GDP from hunting, shooting, and trapping activities, and ranked eighth in growth from fishing-related industries.

Jonas Crews of Heartland Forward emphasized that outdoor recreation not only generates billions in consumer spending but also creates sustainable employment opportunities across manufacturing, supply chain, retail, and hospitality sectors while preserving Arkansas’s natural heritage.

A new dataset developed with ARData enables near real-time tracking of outdoor employment by region. In 2024 alone, Arkansas added more than 2,300 new outdoor jobs, bringing the total to 32,839, or 2.5 percent of all employment in the state.

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Visitor spending fuels $17.4 Billion in economic activity

LITTLE ROCK — Arkansas Department of Parks, Heritage and Tourism recently released the annual tourism economic impact report along with the inaugural release of outdoor recreation economy data. In 2024, Arkansas welcomed 52 million visitors — a 2.6% increase over 2023 — reflecting strong growth in the state’s visitor economy. According to the economic impact study released by Tourism Economics, these visitors spent $10.3 billion, marking a 4.0% increase from the previous year.

Factoring in an additional $7.1 billion from supply chain (indirect) and income (induced) effects, visitor activity generated a total economic impact of $17.4 billion, boosting businesses, creating job, and easing the tax burden for Arkansans.

“From beautiful rivers and lakes to world-class hiking and mountain biking trails, Arkansas is a fantastic place to visit — and the whole world is starting to find out,” Governor Sarah Sanders said. “Thanks to the Natural State Initiative — led by my husband Bryan — we are investing in our strengths, growing our outdoor economy, and establishing ourselves as the leading destination for year-round outdoor adventure. Today’s record-high tourism figures show that our strategy is working.”

To quantify the significance of the Arkansas visitor economy, Tourism Economics developed a comprehensive analysis of visitor spending and its total economic impact on businesses, employment, personal income and taxes. The Arkansas Department of Parks, Heritage and Tourism (ADPHT) utilizes the visitor economy measurements to make decisions that promote the industry’s development.

“Arkansas captivates travelers with stunning landscapes, wide range of outdoor recreation activities and genuine hospitality,” said Shea Lewis, secretary of ADPHT. “The Natural State’s year-round offerings not only drive visitation but also play a vital role in strengthening Arkansas’ economy.”

The study reveals a daily influx of $28.2 million in visitor spending, which sustains 71,633 direct jobs or 3.9% of all jobs in Arkansas. With an additional 31,034 jobs supported indirectly, the visitor economy was responsible for one in every 18 jobs statewide.

Food and beverage led all year-over-year spending categories at $3 billion, representing a 6.5% increase. Retail and recreation spending rose 5.8% and 4%, respectively. The short-term rental market contributed to a 3.3% increase in lodging spending. As gas prices eased, transportation spending managed a modest 0.6% increase in 2024.

This growth in visitor spending is closely tied to Arkansas’s expanding outdoor recreation economy. For the first time in the agency’s history, it is releasing key outdoor recreation economic data along with tourism data because one thing unites Arkansas — its access to outdoor recreation that welcomes visitors from across the country.

According to the Arkansas Office of Outdoor Recreation (OOR), The Natural State’s strong outdoor recreation industry is anchored by innovation, strong community partnerships, as well as Arkansas’s manufacturing and logistics sectors.

The 2023 statewide economic impact data, compiled by ARData and the Bureau of Economic Analysis (BEA), show that outdoor recreation contributed $7.3 billion to the state’s economy and supported 68,000 jobs. At 2.5% of Arkansas’ total GDP, surpassing farming, outdoor recreation has grown 33% since 2019. That outpaces the national average of 27%. In 2023 alone, the industry grew by 8.2%, driven by a mix of legacy activities and innovations across the state.

While many states rely heavily on tourism and retail, 36% of Arkansas’s outdoor value comes from manufacturing, transportation and warehousing. This industrial backbone makes the sector more resilient to economic disruptions, such as downturns in travel or seasonal fluctuations, and positions it for long-term sustainability. Manufacturing wages average $84,600 annually, over 20% higher than the state average. Arkansas ranks 4th nationally in GDP share from outdoor product manufacturing, reinforcing its strength as a stable and high-value component of the broader economy.

From 2019 to 2023, outdoor amenity construction grew by 52.7%, the fastest in the nation. Arkansas also recorded the third-largest growth in GDP from hunting, shooting, and trapping, and ranked 8th in growth from fishing-related activities.

“Arkansas’s outdoor recreation economy is a powerful driver of economic growth, generating billions in consumer spending annually while supporting thousands of jobs across rural and urban communities across the state. Outdoor recreation creates sustainable, year-round employment opportunities in manufacturing, supply chain, retail and hospitality industries while preserving the natural heritage that makes Arkansas such a special place to live and work,” said Jonas Crews of Heartland Forward, an Arkansas nonprofit, policy think-and-do tank.

A new dataset developed with ARData allows the state to track outdoor employment by region in near real time. In 2024, Arkansas added more than 2,300 new outdoor jobs, bringing the total to 32,839, or 2.5% of all employment statewide.

With continued investment and cross-sector collaboration, Arkansas continues to lead in outdoor development, ensuring the industry remains a key driver.

Together, the reports underscore how Arkansas’s natural assets and economic strategy work hand in hand to draw visitors, support local economies, and shape a resilient future for communities across the Natural State.

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