Study: ’07 tourists spent $309 million in Hot Springs area
Posted on Friday, July 4, 2008
URL: http://www.nwanews.com/adg/News/230436/
HOT SPRINGS — Visitors spent more than $ 309 million — nearly $ 850, 000 a day — in Garland County in 2007, according to a study released Monday by the Hot Springs Convention and Visitors Bureau.
More than a quarter of visitor dollars were spent on food and beverages at restaurants, said the study that Economics Research Associates prepared for the Hot Springs Advertising and Promotion Commission.
Visitors to the county also spent $ 51 million at stores and $ 44 million on entertainment, according to the study.
Economics Research examined the spending patterns of overnight and day visitors and second-home owners in 2007 as part of the study.
“It is important to note that Garland County visitors are very diverse in terms of composition (convention participants to fishing enthusiasts ) as well as in their probable local expenditures,” the study said.
That diversity “explains why a County with 96, 000 residents has over 230 dining facilities, extensive retail, entertainment and other related urban amenities,” it said.
The study estimates sales taxes from visitor spending were $ 4, 636, 000 in Hot Springs and $ 1, 545, 000 in Garland County and that the 3 percent advertising and promotion tax brought in $ 3, 673, 000.
“This is just the first piece that we’re doing as part of our latest research,” said Steve Arrison, the convention and visitors bureau’s chief executive officer.
Arrison said the commission also plans to “piggyback” on research by the Arkansas Department of Parks and Tourism, “which should save us a substantial amount of money.”
The state research is being done by Economics Research and Longwoods International, another research firm. Arrison said the commission is waiting for the state’s proposal on how it can benefit from the wider study.
Cranford Johnson Robinson Woods, which holds Hot Springs ’ marketing account, also has the contract for the state of Arkansas. Arrison also is chairman of the Arkansas State Parks, Recreation and Travel Commission.
The state study will provide deeper research information on visitors and why they come to Garland County, said Arrison, who also is chairman of the Arkansas State Parks, Recreation and Travel Commission.
He said the portion of the commission’s research released Monday will be updated each year. The study sets a “good benchmark” that can be used to gauge the direction the local tourism industry is headed, he said.
“Are we increasing ? Are we decreasing ?” Arrison said. “It will provide a good snapshot of how tourism is doing in Garland County.”
Arrison has headed the convention and visitors bureau for 10 years, and during that time he has heard comments ranging from how tourism has no impact — “We can live without it” — to how the majority of the 3 percent advertising and promotion tax is being paid by local residents.
Significantly, the Economics Research study concludes that the majority of the advertising tax, which is collected in the city on restaurant sales and lodging, was paid by visitors in 2007.
Visitor spending accounted for 80 percent, or $ 3. 7 million, of the advertising tax revenue, the report says.
“Which is something that those of us in the tourism industry have been saying for quite some time,” Arrison said.
The remaining $ 893, 000 was paid by Garland County residents when they ate at Hot Springs restaurants.
“With 41, 000 households in the county, [Economics Research ] estimates that on average, each Garland County household spent an estimated $ 22 in 2007 on this tax. This represents an average annual expenditure of $ 725 per household on food away from home specifically spent in Garland County. This amounts to $ 60 a month or $ 14 a week for meals, snacks and beverages purchased outside the home,” the study said.
Arrison thinks the Economics Research study validates not only the work of the ad commission but the economic development work done by the county and the city of Hot Springs.
“I think it validates we’re going in the right direction. We’re not pursuing smokestack industries and those types of things that would ruin our environment and ruin our tourism product,” he said.
Economics Research’s assessment of Garland County visitor activity, both present and future, is “very positive,” the report said.
“In addition to local jobs and tax dollars generated and the related amenities (i. e. dining, retail, entertainment ) that enhances local residents’ quality of life, there are minimum government expenses involved. Visitors come, spend their money and leave. Their school and community needs are covered in their home areas. This is why many communities, with suitable environments and attractions, are aggressively pursuing visitor activity as their primary economic base and future.”
Economics Research said the following conclusions can be made regarding key Garland County visitor trends: More people, mainly new visitors, are going to Garland County’s primary attractions; other visitors are making repeat trips; and visitors increasing are staying overnight for extended stays, not just day trippers. Higher-income visitors are increasing, related in part to more convention or conference activity and the expanding Oaklawn Park gambling program.
That six additional hotels are reportedly under construction or planned indicates extended-stay visitors are expect to continue to grow.