Days after Arkansas Business surveyed 2025 hotel and restaurant tax receipts in select cities, Whispers got an update from the Arkansas Hospitality Association and its incoming CEO on what it expects in the tourism sector next year.
The bottom line is the forecast looks strong, per Alicia Payseno, the Cabot economic development director who will take over leadership of the AHA on Jan. 5.
The association projects that U.S. consumers will spend $978.8 billion on food and beverages in 2026, a “promising indication that hospitality in the U.S., and here in Arkansas, remains strong.”
Trends suggest increased spending in fast-casual, midscale and casual dining, as well as lodging, the association said. It foresees overall industry growth of about 1.1%, hindered at a macro level by inflation.
Meanwhile, food service employment continues to rise.
“Tourism and hospitality remain one of our state’s most significant economic drivers,” AHA marketing and communications chief Dylan T. Kinkade said in an email. “While statewide 2% tourism tax revenue is slightly below last year’s unusually strong performance, recent summer months show renewed growth, including a record-setting August. Local hospitality tax collections in surveyed cities are slightly down year-over-year, but tourism employment continues to climb, surpassing pre-pandemic levels and setting new records in July.”
Payseno said the data points to resiliency and growth for the industry next year.
“Arkansas’s hospitality and tourism sector continues to prove its strength,” she said. “Our industry supports one out of every 18 jobs in the state and drives spending across restaurants, lodging, retail, and recreation. Even with normal fluctuations in tax collections, we’re seeing steady job growth, record-setting employment, and strong consumer demand. The long-term picture is clear: Hospitality remains one of Arkansas’s most resilient and essential economic engines.”
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