The second half of 2014 is off to a good start for the tourism and travel sector in the Fort Smith region based on hospitality tax collections in Fort Smith and Van Buren and regional employment numbers. The numbers are also reflective of the broader and much larger national sector.
Employment in the region’s tourism industry was 9,800 during July, and rose to an estimated 9,900 in August. July matched the employment peak first set in August 2008, and the August 2014 number sets a new record if the number is not revised. The August number also tops the August 2013 employment of 9,600.
Hospitality tax collections in Van Buren for the first seven months of 2014 total $255,764, up 1.5% compared to the same period in 2013. The city collects a 1% tax on lodging and a 1% prepared food tax.
July receipts totaled $37,153, up 2.1% compared to July 2013. Maryl Koeth, executive director of the Van Buren Advertising & Promotion Commission, is optimistic that travel to see the fall colors will allow collections to be positive for the remainder of the year.
“I'm anticipating good fall vacationer traffic due to the unusually wet year we have had in our area which should translate into spectacular fall colors coupled with several fall events,” Koeth explained.
She also said 2014 restaurant revenues in July “finally” surpassed revenue totals for July 2013 by a little more than 0.5% after trailing for the first half of 2014.
“Lodging revenues are still up 2.25% over last year. If we stay on this same track I'm predicting that revenues will end the year up about 1%,” she said.
Collections in Van Buren during 2013 totaled $423,221.83, remarkably close to the $423,222.91 during 2012. During 2012, Van Buren hospitality tax collections totaled $425,554, up 5.2% compared to the 2011 collections. Hospitality tax collections in Van Buren during 2011 totaled $429,561, up 2.34% compared to 2010. The 2011 collections ended a two-year skid in Van Buren.
FORT SMITH NUMBERS
For the first seven months of 2014 the Fort Smith Convention & Visitors Bureau collected $448,817, up 2.2% compared to the same period of 2013. The city collects a 3% tax on lodging.
July hospitality tax collections in Fort Smith totaled $71,441, up 4% compared to July 2013.
Claude Legris, executive director of the Fort Smith Convention & Visitors Bureau, said several “alternating” events helped keep July numbers strong compared to a July 2013 that saw a large convention in Fort Smith of the Christian Congregation of the Jehovah’s Witness.
“Pleasantly surprised to see that the month of July was not as far under what we had anticipated due to the Christian Congregation of Jehovah’s Witnesses (CCJW) holding their international meetings at alternate venues. We did have some alternating year events take place such as Lincoln High School Reunion and Band Masters that took place in July as well as Girls Softball the State Swim Meet and Barrel Racing and team Roping that helped make up the loss,” Legris said.
Collections in Fort Smith during 2013 totaled $731,057, down 2% compared to the same period in 2012. During 2012, Fort Smith hospitality tax collections totaled $746,182, up 5.37% compared to the 2011 period. The 2011 collections were up 4.3% compared to 2010.
ARKANSAS TOURISM BOOST
Collections of Arkansas’ 2% tourism tax during the first six months of 2014 totaled $6.769 million, up 7.6% compared to the $6.287 million during the same period of 2013.
The 2% tourism tax set a record in 2013 by reaching $12.716 million. Richard Davies, the state’s tourism chief, predicted 2014 would be even better for Arkansas’ tourism and travel sector. March, April, May and June set records for collections of the state’s tourism tax for the months.
The 2013 collections were up 2.5% compared to the $12.405 million in 2012, and well ahead of the $11.378 million slump in 2009 when national economic conditions proved tough on Arkansas’ tourism industry.
NATIONAL TOURISM TRENDS
Spending on travel and tourism in the U.S. and sector employment grew during the second quarter of 2014, according to the U.S. Bureau of Economic Analysis.
Real spending in the quarter grew at an annual rate of 2.1% following a revised first quarter dip of 1.1%.
The leading contributors to the upturn in the second quarter were “recreation, entertainment, and shopping,” and “food services and drinking places.” The recreation sector was up 4.5% in the quarter after falling 2.7% during the first quarter. Food services was up 6.5% in the second quarter after being down 1.8% in the first quarter. The string of bad winter storms across the U.S. in January and February has been cited for downturns in many economic sectors.
Employment in the travel and tourism industries was up 2.3% in the second quarter of 2014 after a revised first quarter gain of 2.1%. The employment gain marked the 17th consecutive quarter of employment growth. By comparison, overall U.S. employment increased 2.2% in the second quarter after increasing 1.5% in the first quarter.
“Total Tourism-Related Output” was $1.5 trillion in the second quarter of 2014. It consisted of $892.4 billion (58%) of direct tourism spending and $639.7 billion (42%) of indirect tourism-related spending.
“Total Tourism-Related Employment” was 7.7 million jobs in the second quarter of 2014 and consisted of 5.5 million (71%) direct tourism jobs and 2.3 million (29%) indirect tourism-related jobs.