ARKANSAS TOURISM’S MARKETING REPORT CARD

By Darin Gray, Chairman and CEO of CJRW – the Arkansas Department

Arkansas’ outdoor and tourism economy is booming.

Our state has evolved from that of a regional tourism destination to one that attracts visitors from all over the country and the world. We are no longer a hidden gem.

Much of the success is attributable to an enviable collaboration between the tourism industry, the Arkansas Department of Tourism, our governor-appointed commissioners, the hospitality industry and the state’s marketing agency.

Those pillars of strength remain firmly rooted today along with our state’s ever-increasing public-private partnerships, which together have created an $8 billion industry – the state’s second largest behind agriculture – and fuels our economy in multiple ways, including the attraction of professional talent.

Of course, we have a great product to sell. Arkansas is blessed with stunning natural beauty, a hospitable culture and world-class amenities, including 52 unique state parks. During the COVID-19 pandemic, when social distancing and other restrictions left people across the country feeling cooped up, many visitors packed their bags and found solace in Arkansas.

Unmatched year-round access to an endless number of outdoor activities — whether hunting and fishing, cycling or rock climbing — is one of the primary reasons that tourism is such a powerhouse economic engine.

Ultimately, the goal of Arkansas Tourism is simple: Attract out-of-state individuals to visit Arkansas; have them stay as long as possible; return home and then come back again while encouraging those in their sphere of influence to do the same.

Marketing is the most critical tool in driving awareness of The Natural State’s attractions and transforms that knowledge into engagement, chiefly in the form of visitors to the state.

Arkansas Tourism’s marketing budget comes from the state’s 2% Tourism Reinvestment Tax, which is levied on lodging, campgrounds, watercraft and equipment rentals and admission to tourist attractions. The vast majority of these tax receipts are paid by outof-state visitors and directly benefits Arkansans by providing additional resources that are invested into promoting the state.

Each year, out-of-state visitors to Arkansas provide a substantial boost to the state’s economy. In large part, this is because unlike many other industries, the tourism industry serves as a conduit that feeds various other industries, including transportation, food and beverage, lodging, recreation, entertainment and retail.

In 2021, 41.3 million guests spent $8 billion dollars while visiting the state, according to Arkansas Tourism’s most recent annual economic impact report. This equates to more than $650 million dollars in state and local tax receipts, money used to improve roads and other infrastructure in towns all over Arkansas.

Additionally, more than 64,000 Arkansans are employed by the tourism industry.

Annual tourism tax collections also serve as a barometer for the effectiveness of Arkansas Tourism’s marketing strategy.

From 2017 to 2021, Arkansas saw an increase in the number of outside tourists each year, not counting 2020 and its lockdowns and restrictions related to the COVID-19 pandemic.

By 2021, the state was poised for a great rebound for tourism. With COVID still topof-mind, consumers were looking for a way out of isolation, and there is no place better to do that than Arkansas. Our state’s vast outdoor offerings provided people with a way to avoid large crowds, find separation and enjoy life again. As a result, Arkansas’ tourism tax collections surpassed those of pre-pandemic 2019, and exceeded $20 million for the first time in history.

Consistent year-over-year growth in the 2% tax is a testament to Arkansas’ compelling attractions, as well as the successful marketing efforts.

Product development is the foundation of Arkansas Tourism’s successful marketing efforts. We must provide visitors with a reason to come for the first time and to return again and again.

For instance, our state’s outdoor economy is not only being driven by hunting, fishing and watersports but also by mountain biking. Private partners like the Runway Group have invested millions to make Arkansas the mountain biking capital of the world with year-round access to world class mountain bike trails. There are many other private partners – like Delta Dirt Distillery and Johnny Morris – who are investing significantly to grow our tourism economy.

Along with the natural beauty that our of Tourism’s

agency

of record state has to offer, these developments provide the backdrop for creative storytelling that effectively communicates the heart of what makes Arkansas a premier destination. We develop creative assets that inspire, engage and motivate target audiences with authentic scenes that define the state’s landscape, attractions and culture, ultimately inspiring them to visit and explore all that Arkansas has to offer.

After we develop the story, we must tell the story.

Our successful marketing strategy relies on a commitment to market research and consistently revising marketing approaches based on emerging data. Rather than quick, sweeping changes in approach based on industry fads, we utilize sound analysis to make intentional, incremental adaptations in strategy.

While Arkansas will always be best experienced firsthand rather than through a screen or virtual reality headset, the state’s marketing strategy has leveraged digital mediums as a vehicle for telling the story of The Natural State for decades.

Arkansas has been leading with and leveraging digital media advertising as part of its advertising efforts since 2003, which today makes up more than 65% of Arkansas Tourism’s media mix. This is enhanced by utilizing new tools such as programmatic advertising, which allows the media plan to be adjusted in real time, making media placements more efficient and more effective.

Finally, Arkansas Tourism’s cooperative advertising program provides an affordable way for businesses operating within the industry to pool money and tap into supplemental funds to advertise to a broader audience, which would otherwise be cost prohibitive.

Bottom line: Arkansas’ tourism industry is thriving.

The proof is in the numbers. Two-percent tax collections for the current fiscal year are on track to exceed the $25 million mark!

With all that Arkansas has to offer, if we get people here, there’s a good chance they’ll come back time and time again.