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