by Michael Tilley (mtilley@talkbusiness.net)

Eureka Springs will retain its hospitality tax revenue and its adverting and promotion commission after 71.2% of voters in the tourism-focused city rejected a citizen initiative to put an end to the tax and the commission.

The final tally, according to the Carroll County Clerk’s office, had 839 votes against Issue 3 – the measure to remove the tax – and 339 votes for.

“It was the Eureka Springs business community that realized that the lifeblood of Eureka Springs is tourism. Without tourism, and without the promotion of tourism … the town could not exist. This was the business community and a tourism workforce of almost 3,000 people saying they wanted to keep this thing alive,” Mike Maloney, tourism director of the Eureka Springs City Advertising and Promotion Commission, told Talk Business & Politics.

Eureka Springs voters decide to retain hospitality taxes, tourism commission

by Talk Business & Politics staff (staff2@talkbusiness.net)

Eureka Springs, one of Arkansas’ tourism hot spots, faces the possibility of losing more than $2 million a year in hospitality tax revenue that is used to promote the city, manage city tourism assets and support tourism events.

In 2023, the tax generated $2.05 million, down 1.4% compared with 2022 revenue.

A group of citizens unhappy with the Eureka Springs Advertising and Promotion Commission (CAPC) have managed to place an item on the November general election ballot to remove the city’s 3% hospitality tax on prepared food and on lodging. It only took 148 signatures in a town of around 2,500 to get the item on the ballot.

Mike Maloney, tourism director of the Eureka Springs City Advertising and Promotion Commission, understands why some would like to see the tax and the commission go away. He readily admits that the commission has a troubled past, including a revolving door of leadership, a lack of transparency and questionable actions related to event promotion.

Future of Eureka Springs tourism agency, funding on the November ballot