SECTION II ASSESSMENT

The primary purpose of LARC's initial research was to analyze the current market and tourism-related opportunities in the City of Eureka Springs. This analysis includes:

• Collection and review of relevant data.
• Interviews of key tourism program participants.
• Assessment of Eureka Springs' tourism program, recent experience, and near-term market opportunities.
• Presentation of tourism development strategies.

This section summarizes the results of LARC's market analysis for strategic tourism development in Eureka Springs. This includes defining the market and profiling the competition. The remaining three sections of the report critique current issues in Eureka Springs, discuss the proper way a city should structure a tourism program, a step-by-step outline for Eureka Springs to execute and a final summary merging all sections.

Local Background and Regional Markets

Local Background

Eureka Springs, with a population of approximately 2,500, is located in Carroll County near the Missouri border in northwest Arkansas. It is situated in the Ozark Mountains close to Beaver Lake.

The history of Eureka Springs begins with the discovery of the springs from which the town derives its name by native Indian tribes. White settlers arrived in the mid-1850's after learning of the springs' healing qualities. As word of the magical water began to spread, thousands of health seekers moved to what has been known since 1879 as Eureka Springs. By 1881, Eureka Springs had become a popular vacation resort with a boardwalk and an elegant four-story hotel. The Eureka Springs Railway began operations in 1883, boosting the city's development and delivering six trainloads of visitors daily. A horse-drawn trolley system was introduced in 1891 and electrified in 1899. By the turn of the century, Eureka Springs had grown into a well-established resort community with prominent Victorian-style architecture.

Twentieth century advancements, however, took their toll on Eureka Springs. Between water pollution and modern medicine, the city experienced a rapid downslope in its economy by the 1960's,and the once flourishing tourist destination became an empty town. But low land prices and the beautiful setting drew New Agers, artists, and other free spirits, which established the existing arts community.

For the same reasons, Gerald L. K. Smith chose this location to erect a huge statue of Jesus, which has become known as the Christ of the Ozarks. After the statue was finished in 1966, he and others decided to create a Passion Play, which had its first performance in 1968 in an amphitheater that seated 1,200 people. Shortly after that, work on a New Holy Land Tour began.

The history of a community usually provides a correlation to the existing attitudes and aura that surrounds it, and this is true of Eureka Springs, where many events in its development led to its current status. While the Christian attractions reestablished Eureka Springs as a tourist destination,the community has several more diverse elements that would be of interest to visitors. To satisfy the mix of tourists visiting Eureka Springs and to create a successful tourism program, it is crucial to find the common ground between these elements.

Population and Income

The population of Eureka Springs grew from 1,900 in 1990 to 2,088 in 1998, as estimated by the U.S. Census Bureau. This is a growth rate of only 1.2%, with the county rate only slightly higher at 2.1%, reflecting citizen migration to larger area cities.

Table 1: Historical Population

Eureka Springs and Carroll County

Year	Eureka Springs	Carroll County
1990	1,900	18,654
1998	2,088	22,039
2003	2,236
CAGR (1990 - 1998)	1.2%	2.1%
CAGR (1998 - 2003)	1.4%

CAGR = compound annual growth rate

Source: U.S. Census Bureau, CACI

According to CACI Marketing Systems data, Eureka Springs residents are, in general, divided into two broad income classifications: more than half the households earn less than $25,000 (55%); 42% earn between $25,000 and $75,000; a very small number earn more than $75,000. Generally, higher household income figures translate into more discretionary spending on things such as theater, dining out, shopping, and entertainment. Eureka Springs income figures seem to indicate the inability of the community alone to support broad leisure activities.

Table 2: Household Income Distribution

City of Eureka Springs

Category			% of Households
		1990	1998	2003
Under $15,000		46%	27%	19%
$15,000-$24,999		19%	28%	25%
$25,000-$34,999		14%	27%	19%
$35,000-$49,000		13%	14%	15%
$50,000-$74,999		5%	10%	14%
$75,000-$99,999		1%	2%	6%
$100,000-$149,999		1%	1%	2%
$150,000 and Over		0%	0%	1%
Source: CACI

Per capita and medium income data is presented for the City of Eureka Springs in Table 3. As the table shows, per capita income is expected to increase at a 3.8% annual rate from 1998 to 2003. Median income is expected to rise at a lesser rate, 3.5% annually.

Table 3: Income Characteristics

City of Eureka Springs

Year	Per Capita	Median Household
1990	10,849	17,262
1998	14,170	23,268
2003	17,076	27,689
CAGR (1990 - 1998)	3.4%	3.8%
CAGR (1998 - 2003)	3.8%	3.5%

Visibility and Traffic

Although not located near an interstate, Eureka Springs is situated in and near several major tourist areas, bringing visitors via U.S. 71 from I-44 to the north and I-40 to the south. Branson, Missouri, is just 45 miles northwest, located on U.S. 65, which connects Springfield, Missouri. to Little Rock, Arkansas. Both U.S. 71 and U.S. 65 intersect the Ozark Mountain scenic country, the Ozark and Mark Twain National Forests, and Beaver and Table Rock Lakes as well as other numerous small lakes, rivers and creeks. Eureka Springs sits in the center of it all on U.S. 62, connected to U.S. 71 at Bentonville on the east and U.S. 65 at Harrison on the west. Traffic counts of specific roads and interstates are specified to establish the volume of vehicles passing in and around the city. Table 4 presents 1997 traffic counts for roadways in Eureka Springs.

Table 4: 1997 Annual Average Daily Traffic

Point of Traffic Count	Vehicle
US 62, Kings Hwy, west of Main St., close to the Visitor's Information Center	7,600
(Pivot Rock Rd. close to the intersection with US 62)
access road to Pivot Rock and Lake Leatherwood	1,200
US 62, east of East Mountain St.	9,000
South Main St., close to the Historical Museum	5,100
(Armstrong Ave. close to the intersection with US 62)	1,100
Greenwood Rd. close to the intersection with State 23,
on the access road to Lake Lucerne	1,500
East Mountain close to the intersection with US 62	1,000
State 23 north of the center of Eureka Springs	3,900
Magnetic Road, access road to the Passion Play Park from Main St.	1,400
Passion Play Road, access road to the Passion Play Park from US 62	2,700
Note: Both directions
Source: Arkansas State Highway and Transportation Department

U.S. 62, Kings Highway, is the main road through the city, and east and west stretches provide the highest traffic counts. South Main Street close to the Historical Museum and State 23 are the other high density roadways as well as Passion Play Road, the access road to the Passion Play Park from U.S. 62. It is crucial that these corridors be well designed and maintained and visually pleasing to attract more visitors to actually stop and stay for a length of time in the area.

Regional Market

The potential for tourism development is, in part, a function of available markets. Eureka Springs iscentrally located between Springfield, Missouri, to the north, Fort Smith, Arkansas, to the southwest,Little Rock, Arkansas, to the southeast, and Tulsa, Oklahoma, to the west. Closer to home are Fayetteville-Springdale-Rogers in Arkansas and Joplin in Missouri. The city is less than 10 miles fromthe Missouri border. U.S. Highway 62 passes through the city, connecting Eureka Springs with theHarrison and Fayetteville-Springdale-Rogers MSAs.

The following map shows the area LARC has defined for the Eureka Springs tourism market area. The market area is based on driving distance with the maximum drive time of about 9 hours. Because80% of domestic travel occurs via automobiles, trucks, and recreational vehicles, with the lattergrowing the fastest, market areas can be defined by drive time, or the time people spend traveling toa destination by auto. The nine-hour drive time projected for the Eureka Springs market includes daytrippers, weekend visitors, and extended overnight stays.

In the industry, a 150-mile radius represents about a one-day drive time. The weekend traveler willgenerally originate from a three to five-hour drive time, or approximately 150 to 250 miles fromEureka Springs. The day-trip market will consist of the market within a three-hour drive, or 150- mileradius, of the city. The secondary market will be the primary means of gaining additional tourism toEureka Springs during initial tourism development.

Insert Eureka Springs Market Area Map

As shown in the map on the previous page, Eureka Springs' central location in the Ozark Mountains between Branson, Missouri, and Beaver Lake makes it desirable and visible. It is easily accessible to major population centers in Kansas, Missouri, Oklahoma, and the rest of Arkansas via U.S. 71 and U.S. 65 from Interstates 44 and 40. Table 5 presents the populations of selected cities within the Eureka Springs market area.

Table 5: Major Markets

Primary Market MSAs

MSA	1995 Population	1998 Population	Growth
Fayetteville-Springdale-Rogers (AR)	252,640	260,940	3.3%
Fort Smith (AR/OK)	188,572	191,482	1.5%
Little Rock (AR)	543,568	548,352	0.9%
Joplin (MO)	143,804	145,716	1.3%
Springfield (MO)	294,526	296,345	0.6%
Tulsa (OK)	746,500	756,493	1.3%
Total	2,169,610	2,199,328	1.4%
Source: U.S. Census Bureau

Table 6 below shows the segmentation LARC uses to define the Eureka Springs tourism market. As shown, the total market is divided into primary and secondary sub-markets based on drive time from the city and likely purpose of the trip.

Table 6: Market Segmentation

Segment	Travel Type	Travel Time*	Distance
Primary	Day	0-3 Hours	0-150 Miles
Secondary	Weekend	3-5 Hours	150-250 Miles

*To Eureka Springs from traveler's residence.

Source: LARC

Population

The total population within 250 miles, or a 5-hour drive, is estimated at nearly 10 million people in1998. Compound annual growth from 1990 to 2003 is projected to be 0.8% compared to 1% for thenation as a whole.

Table 7: Market Size

	Distance	Population
Segment	in Miles	1990	1998	2003	CAGR
Primary	0 to 150	3,674,934	4,093,328	4,348,395	1.2%
Secondary	150 to 250	9,337,489	9,910,807	10,257,577	0.7%
Total	0 to 250	13,012,423	14,004,135	14,605,972	0.8%

CAGR = Compound annual growth rate for 1990-2003

Source: CACI

As Table 7 shows, the primary segment represents not quite half of the total market population withthe higher growth rate of the two. Total population of the market is expected to grow by about601,837 people between 1998 and 2003, an increase of 0.8% compared to the nation's increase of0.9%.

The population center for the region is Fayetteville, which falls into the primary tourism market forEureka Springs. Other MSAs within the primary market include Springdale-Rogers, Fort Smith, andLittle Rock MSAs in Arkansas, Springfield and Joplin in Missouri, and Tulsa in Oklahoma.

MSAs in the secondary market include Pine Bluff and Texarkana in Arkansas, Memphis, St. Louis,Kansas City, and St. Joseph in Missouri, Oklahoma City in Oklahoma, and Topeka, Lawrence, andWichita in Kansas. The population of all the MSAs in the secondary segment totaled 7.5 million in 1996 (Table 8).

Table 8: Major Markets

Secondary Market MSAs

MSA	1995 Population	1998 Population	Growth
Pine Bluff (AR)	84,042	83,007	-1.2%
Texarkana (AR/TX)	122,991	123,919	0.8%
Memphis (AR/TN)	1,068,891	1,078,151	0.9%
St. Louis (MO/IL)	2,547,686	2,584,238	1.4%
Columbia (MO)	123,742	125,676	1.6%
Kansas City (MO/KS)	1,663,453	1,690,343	1.6%
St. Joseph (MO)	125,852	97,336	-22.7%
Oklahoma City (OK)	1,015,174	1,026,657	1.1%
Topeka (KS)	165,062	164,938	-0.1%
Topeka (KS)	165,062	164,938	-0.1%
Lawrence (KS)	88,206	164,938	1.9%
Wichita (KS)	508,224	512,965	0.9%
Total	7,513,323	7,577,129	0.8%
Source: U.S. Census Bureau

As the figures indicate, populations in the market area are concentrated among the metropolitan areas listed above. The metro populations in the primary and secondary segments represent approximately 15% and 54%, respectively, of the entire regional market, which consists of 14.0 million people and is expected to grow to14.6 million people by 2003, a 4.0% growth.

Households

Household growth in the primary market area is projected to be just slightly higher (1.3%) than the U.S. (0.9%) during the period 1998-2003. Household growth in the secondary market is projected to be less (.7%) than that of the country as a whole (Table 9).

Table 9: Households

Year	Primary	Secondary	Total	U.S.
1990	1,424,289	3,530,260	4,954,549	91,947,408
1998	1,592,749	3,758,829	5,351,578	99,456,200
2003	1,695,569	3,901,516	5,597,085	103,931,875
Growth (1990-1998)	1.4%	0.8%	1.0%	1.0%
Growth (1998-2003)	1.3%	0.7%	0.9%	0.9%
Source: CACI

Income

The population distribution by household income shows that incomes in the primary market population are somewhat lower than the U.S. as a whole, but those in the secondary market are somewhat higher. In fact, the primary market is skewed towards the lower income brackets, and to reach higher income households, Eureka Springs must reach beyond its primary market area. (Table 10, 11, 12) Appendix A presents detailed information for the two market segments.

Table 10: Income Characteristics

Resident Market Segments

Measure	Segment	1990	1998	2003	Growth (1990-1998)
Per Capita	Primary	11,344	14,273	16,536	2.9%
	Secondary	12,907	16,676	19,626	3.3%
Average Household	Primary	28,860	36,248	41,949	2.9%
	Secondary	33,658	43,380	50,963	3.2%
Median Household	Primary	22,208	28,664	33,211	3.2%
	Secondary	26,406	34,750	40,636	3.5%
Source: CACI

Table 11: Household Income Distribution

Primary Market

Households by Income	1990	1998	2003
>15,000	33%	24%	19%
15,000-24,999	22%	19%	17%
>25,000-34,999	17%	17%	16%
35,000-49,000	15%	18%	19%
50,000-74,999	9%	14%	17%
75,000-99,999	2%	5%	7%
100,000-149,999	1%	3%	4%
$150,000 and Over	1%	1%	1%
Source: CACI

Table 12: Household Income Distribution

Secondary Market

Households by Income	1990	1998	2003
>15,000	29%	20%	15%
15,000-24,999	19%	15%	13%
>25,000-34,999	16%	15%	14%
35,000-49,000		19%	19%
50,000-74,999	13%	18%	20%
75,000-99,999	4%	7%	9%
100,000-149,999	2%	4%	7%
$150,000 and Over	1%	2%	3%
Source: CACI

Analysis of per capita, average household, and median household income by market segment reveals that the concentration of households with above average incomes is in the secondary market nearer the major metropolitan areas such as St. Louis and Kansas City. However, effective buying income (EBI) may be a better measure of a market's spending potential; it accounts for disposable income available to the population for discretionary spending on things such as travel and tourism. Sales and Marketing Management annually issues its Survey of Buying Power, which provides EBIs by state, county, and MSA.

Table 13: Effective Buying Income

Primary Market MSAs

	Total	Median	% of Households by EBI Group
MSA	EBI ($000)	Household EBI	A*	B*	C*
Fayetteville-Springdale-Rogers (AR)	3,826,382	30,084	28.1%	18.8%	22.6%
Fort Smith (AR/OK)	2,575,040	27,601	27.1%	17.2%	20.1%
Little Rock (AR)	8,754,192	33,604	24.3%	18.4%	29.5%
Joplin (MO)	1,916,714	26,258	27.8%	17.1%	17.8%
Springfield (MO)	4,250,343	29,576	26.5%	18.6%	22.3%
Tulsa (OK)	8,693,570	31,166	24.8%	17.6%	26.6%

* Note:
A: $20,000 to $34,999
B: $35,000 to $49,999
C: $50,000 and Over

Source: Sales & Marketing Management, Survey of Buying Power

Table 14: Effective Buying Income

Secondary Market MSAs

	Total	Median	% of Households by EBI Group
MSA	EBI ($000)	Household EBI	A*	B*	C*
Pine Bluff (AR)	970,670	26,017	22.8%	15.4%	21.4%
Texarkana (AR/TX)	1,541,163	25,744	23.6%	16.3%	19.9%
Memphis (AR/TN)	16,622,188	32,938	21.8%	17.3%	30.0%
St. Louis (MO/IL)	43,014,618	37,415	21.9%	19.5%	33.8%
Columbia (MO)	1,917,649	30,726	23.7%	17.0%	26.8%
Kansas City (MO/KS)	28,816,768	36,629	23.1%	19.7%	32.7%
St. Joseph (MO)	1,222,652	26,521	26.0%	17.8%	18.1%
Oklahoma City (OK)	14,718,800	29,756	25.8%	18.2%	23.7%
Topeka (KS)	2,513,664	32,579	26.1%	19.6%	26.4%
Lawrence (KS)	1,233,684	28,891	21.3%	17.1%	24.7%
Wichita (KS)	7,640,347	34,200	24.4%	19.9%	28.9%

* Note:
A: $20,000 to $34,999
B: $35,000 to $49,999
C: $50,000 and Over

Source: Sales & Marketing Management, Survey of Buying Power

Age Distribution

The age distribution of the primary market population is slightly older than that of the secondary market population. Tables 15 and 16 reveal the age distribution within the primary and secondary markets.

Table 15: Age Distribution

1998 Market Comparison

	Market Segment
Population by Age	Primary	Secondary
+0-4	6%	7%
+5-14	14%	15%
+15-19	8%	8%
+20-24	6%	7%
+25-34	13%	14%
+35-44	15%	16%
+45-64	22%	21%
+65-74	8%	7%
+75-84	5%	4%
85 and Over	2%	2%
Source: CACI

Table 16: Cumulative Age Distribution

1998 Market Comparison

	Market Segment
Population by Age	Primary	Secondary
Under 25	34%	37%
+25-64	50%	51%
65 and Over	15%	13%
Source: CACI

Race

Most travel habits are similar among travelers of varying races. However, according to the Travel Industry Association of America, there are some significant differences. For example, Blacks are four times more likely to rent a car and twice as likely to participate in group tours than the average traveler. Hispanics tend to stay longer on trips and spend significantly more per trip, and Asians are more likely to travel alone and also spend significantly more per trip. Both the primary and secondary market areas have a significantly higher White population than that of the U.S. The primary market area's Black population is only half of that of the country as a whole, while the secondary market area's Black population is somewhat higher.

Table 17: Racial Composition

1998 Population Comparison

Race	Primary	Secondary
White	89%	81%
Black	6%	15%
Asian	1%	1%
Other Races	4%	3%
Hispanic*	2%	3%
* Hispanic can be of any race
Source: CACI

Summary

From the resident regional market assessment, LARC concludes that Eureka Springs has the opportunity to develop a stronger tourism industry by reaching beyond the immediate market area and also by taking advantage of the natural surroundings and history of the area.

The city's target market, and that which the city should focus on, is the resident population within 150 to 250 miles, or a 5-hour drive, of Eureka Springs. This weekend audience has incomes on average with the country as a whole and includes several large MSAs.

A less important market population, from 0 to 150 miles, or a 3 hour drive of the city, is a smaller segment with less significant MSAs in size and income. Although their incomes are lower, according to EBI information, this day-trip audience should not be ignored as a potential market segment for Eureka Springs' attractions.

Other market factors, including current tourism profiles for the area as well as regional competition, will be the focus of the remainder of this section.

Tourism in Northwest Arkansas

The State of Arkansas has an aggressive tourism department that gathers data on the state's 12 tourism regions. Eureka Springs is in the Northwest Arkansas region, which includes Carroll, Benton, Madison, and Washington counties in the northwest corner of the state (Table 18). In 1997 travel expenditures, the Northwest Arkansas region was second only to the Heart of Arkansas region, which includes the Little Rock MSA. Travel expenditures in the Northwest Arkansas region accounted for 13% of the state's $3.2 billion travel spending (Table 18).

Table 18: 1997 Travel Expenditures

State of Arkansas Travel Regions

	Travel Expenditures in $
Carroll County	139,538,584
Benton County	116,399,319
Madison County	5,272,259
Washington County	163,746,144

Northwest Arkansas (Total)	424,956,305
Ozark Mountain Region	185,759,413
Ozark Gateway	144,856,280
Arkansas River Valley Tri-Peaks	124,142,684
Greers Ferry Lake & Little Red River	136,214,273
Heart of Arkansas	858,034,848
Great River Road	365,753,315
Diamond Lakes	395,051,467
Arkansas Land of Legends	88,918,567
Arkansas Great Southwest	124,599,278
Arkansas South	128,750,052

Arkansas Total	3,219,512,000
Source: 1997 - 98 Arkansas Tourism Report

Visitation figures reflect a similar picture to those of expenditures. The most visited region of the state in 1997 was the Heart of Arkansas region. The Northwest Arkansas region, though, was the second most visited of the 12 travel regions, showing the popularity of the northwestern corner of the state (Table 19).

Table 19: Visitors by Travel Region

	1994	1997	Growth
Carroll County	869,899	863,726	-0.2%
Benton County	647,592	728,620	-4.0%
Madison County	30,639	30,189	--0.5%
Washington County	956,989	991,120	-1.2%
Northwest Arkansas (Total)	2,505,119	2,613,655	1.4%
Ozark Mountain Region	1,090,761	1,139,953	1.5%
Ozark Gateway	819,564	856,912	1.5%
Western Arkansas's Mountain Frontier	1,215,219	1,225,852	0.3%
Arkansas River Valley Tri-Peaks	726,042	726,322	0.0%
Greers Ferry Lake & Little Red River	704,048	781,402	3.5%
Heart of Arkansas	4,289,551	4,319,255	0.2%
Great River Road	2,270,361	2,243,410	-0.4%
Diamond Lakes	2,250,535	2,294,143	0.6%
Arkansas's Land of Legends	485,775	501,944	1.1%
Arkansas Great Southwest	736,712	699,095	-1.7%
Arkansas South	724,308	736,054	0.5%
Arkansas (Total)	17,817,995	18,137,997	0.6%
Source: 1997 - 98 Arkansas Tourism Report

In a recent study completed by D.K. Shifflet & Associates in 1998, visitors to Arkansas as well as non-visitors were asked how they would describe the state, both positively and negatively. The most often cited attribute by visitors and non-visitors alike was its scenery. Visitors also find the state relaxing and conveniently located and, somewhat less often, reputable and romantic (Tables 20 and 21).

Table 20: Attributes and Characteristics

of Arkansas from Visitors

Positive
Scenic	74%
Relaxing	66%
Convenient Locations	58%
Positive Reputation	29%
Romantic	24%
Negative
Offers Few Activities	8%
Desolate Landscape	6%
Boring	6%
Expensive	5%
Disappointing	4%
Source: D.K. Shifflet & Assoc.

Table 20: Attributes and Characteristics

of Arkansas from Non-Visitors

Positive
Scenic	44%
Relaxing	35%
Convenient Locations	23%
Positive Reputation	16%
Romantic	11%
Negative
Offers Few Activities	10%
Desolate Landscape	9%
Boring	8%
Expensive	5%
Disappointing	4%
Source: D.K. Shifflet & Assoc.

When asked what motivated them to visit the area, just under half of the respondents said they enjoy the scenic beauty, while 42% said they were visiting friends and/or relatives in the area (Table 22).

Table 22: Reasons for Visiting

Enjoy the Scenic Beauty	47%
Friends/Relatives in Area	42%
Reasonably close to home	33%
Has the activities I'm interested in	26%
Stopover to another destination	20%
Excellent Outdoor Activities	17%
Interesting Historic Sites	16%
Good value for the money	16%
Vacation Home there	6%
Source: D.K. Shifflet & Assoc.

According to DKS&A, visitors to Arkansas are more aware of Hot Springs (97%) than the capitol city, Little Rock (88%). However, Eureka Springs follows with an 82% awareness rate. More visitors were aware of Eureka Springs than the Passion Play or Ozark National Forest (Table 23).

Table 23: Visitor Awareness

City of Hot Springs	97%
City of Little Rock	88%
City of Eureka Springs	82%
Ozark National Forest	78%
The Great Passion Play	71%
Crater of Diamonds State Park	66%
Country Music Shows	60%
Ouachita National Forest	59%
Bull Shoals Lake	54%
Fishing on White River	51%
Source: D.K. Shifflet & Assoc.

In the DKS&A study, Eureka Springs also ranked very high in visitor satisfaction ratings. Only the Passion Play (81%) and Blanchard Springs Caverns (76%) ranked higher. In terms of satisfaction, visitors claimed to be happier with Eureka Springs than Hot Springs, Little Rock, the Mississippi River Parkway, and even the state's presidential homes (Table 24).

Table 24: Satisfaction Ratings

The Great Passion Play	81%
Blanchard Springs Caverns	76%
City of Eureka Springs	74%
Country Music Shows	69%
Oaklawn Park	66%
Lake Ouachita	65%
Petit Jean State Park	65%
Antique Trails	62%
Ozark National Forest	62%
Buffalo National River	61%
Beaver Lake	60%
Civil War Sites	60%
Ozark Folk Center	59%
Fishing on White River	58%
City of Hot Springs	57%
Fort Smith National Historic Site	56%
Ouachita National Forest	56%
Altus Area Wineries	56%
Mississippi River Parkway	55%
Fishing on the Little Red River	55%
Bull Shoals Lake	53%
Old State House in Little Rock	41%
Southland Greyhound Park	36%
Presidential Cities/Homes	33%
Historic City of Helena	32%
City of Little Rock	31%
Crater of Diamonds State Park	31%
Source: D.K. Shifflet & Assoc.

The DKS&A study surveyed groups from Texas, Louisiana, Missouri, Tennessee, Mississippi, Oklahoma, and Southern Illinois who had never visited Arkansas for leisure purposes or had not visited Arkansas for leisure purposes in three years. When asked why they had not visited, regardless of location, the respondents most often cited no family connection to the area and that they traditionally travel elsewhere . This group of respondents varied greatly in their amount of expressed interest in the City of Eureka Springs and The Great Passion Play but in general, states closest to Arkansas had the most interest (Tables 25-38).

Table 25: Barriers to Taking a Trip to Arkansas

Non-Visitors from Texas

No family connection to the area	62%
Traditionally travel elsewhere	59%
Doesn't offer activities I'm interested in	22%
Too far to travel	22%
Better outdoor activities elsewhere	11%
Source: D.K. Shifflet & Assoc.

Table 26: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Texas

Feature	Awareness	Interest
Civil War Sites	29%	29%
Fort Smith National Historic Site	25%	27%
City of Eureka Springs	50%	25%
Crater of Diamonds State Park	38%	23%
City of Hot Springs	88%	23%
The Great Passion Play	38%
Note: Non-Visitors from Texas are defined as Texas residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 65% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 27: Barriers to Taking a Trip to Arkansas

Non-Visitors from Louisiana

No family connection to the area	59%
Traditionally travel elsewhere	60%
Too far to travel	20%
Doesn't offer activities I'm interested in	15%
Better outdoor activities elsewhere	10%
Source: D.K. Shifflet & Assoc.

Table 28: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Louisiana

Feature	Awareness	Interest
City of Eureka Springs	63%	38%
The Great Passion Play	51%	35%
Civil War Sites	22%	35%
Country Music Shows	34%	31%
City of Hot Springs	91%	28%
Note: Non-Visitors from Louisiana are defined as Louisiana residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 58% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 29: Barriers to Taking a Trip to Arkansas

Non-Visitors from Tennessee

No family connection to the area	69%
Traditionally travel elsewhere	61%
Doesn't offer activities I'm interested in	23%
Too far to travel	17%
Better outdoor activities elsewhere	13%
Source: D.K. Shifflet & Assoc.

Table 30: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Tennessee

Feature	Awareness	Interest
Ozark National Forest	68%	25%
The Great Passion Play	32%	23%
Blanchard Springs Caverns	14%	22%
Civil War Sites	28%	20%
Crater of Diamonds State Park	23%	19%
City of Eureka Springs	41%
Note: Non-Visitors from Tennessee are defined as Tennessee residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 73% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 31: Barriers to Taking a Trip to Arkansas

Non-Visitors from Mississippi

No family connection to the area	63%
Traditionally travel elsewhere	54%
Doesn't offer activities I'm interested in	20%
Too far to travel	10%
Better outdoor activities elsewhere	9%
Source: D.K. Shifflet & Assoc.

Table 32: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Mississippi

Feature	Awareness	Interest
The Great Passion Play	42%	37%
City of Hot Springs	88%	35%
City of Eureka Springs	49%	33%
Ouachita National Forest	23%	30%
Blanchard Springs Caverns	9%	29%
Note: Non-Visitors from Mississippi are defined as Mississippi residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 60% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 33: Barriers to Taking a Trip to Arkansas

Non-Visitors from Missouri

No family connection to the area	63%
Traditionally travel elsewhere	67%
Better outdoor activities elsewhere	17%
Not enough to do	15%
Doesn't offer activities I'm interested in	13%
Source: D.K. Shifflet & Assoc.

Table 34: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Missouri

Feature	Awareness	Interest
The Great Passion Play	60%	34%
City of Eureka Springs	73%	32%
City of Hot Springs	88%	26%
Bull Shoals Lake	68%	24%
Crater of Diamond State Park	30%	23%
Note: Non-Visitors from Missouri are defined as Missouri residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 55% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 35: Barriers to Taking a Trip to Arkansas

Non-Visitors from Oklahoma

No family connection to the area	70%
Traditionally travel elsewhere	49%
Doesn't offer activities I'm interested in	16%
Too far to travel	12%
Better outdoor activities elsewhere	10%
Source: D.K. Shifflet & Assoc.

Table 36: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Oklahoma

Feature	Awareness	Interest
City of Eureka Springs	81%	44%
The Great Passion Play	62%	37%
Country Music Shows	50%	28%
Ozark National Forest	66%	26%
Civil War Sites	22%	22%
Note: Non-Visitors from Oklahoma are defined as Oklahoma residents who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 58% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Table 37: Barriers to Taking a Trip to Arkansas

Non-Visitors from Southern Illinois

No family connection to the area	59%
Traditionally travel elsewhere	56%
Doesn't offer activities I'm interested in	17%
Better outdoor activities elsewhere	12%
Too far to travel	12%
Source: D.K. Shifflet & Assoc.

Table 38: Top Places, Activities, and Attractions Ranked by Interest

Non-Visitors from Southern Illinois

Feature	Awareness	Interest
The Great Passion Play	30%	29%
Blanchard Springs Caverns	5%	21%
Bull Shoals Lake	49%	20%
City of Eureka Springs	34%	18%
Country Music Shows	26%	18%
Note: Non-Visitors from Southern Illinois are defined as Illinois residents living in the DMAs of Paducah-Cape Giradeau, Evansvill, Terre Haute, and St. Louis who have not visited Arkansas for leisure purposes in the last three years. Of these Non-Visitors, 75% have never visited Arkansas for leisure purposes.
Source: D.K. Shifflet & Assoc.

Competition

Because the Northwest Arkansas region is the second most visited travel region in the state, most of the small cities in the area have something to offer tourists and are, therefore, all competitors for tourism dollars. The following cities are all located within a 150-mile radius.

Berryville, Arkansas

The county seat of Carroll County, Berryville is 13 miles east of Eureka Springs with a population of approximately 4,000. Its historic downtown has several shopping areas and museums including the Saunders Museum, the Old Courthouse, and the Heritage Center. As Berryville is located in close proximity to White, Kings, and Buffalo Rivers, as well as Beaver and Table Rock Lakes, outdoor recreation offerings include fishing, hunting, canoeing, and tubing.

Attractions:

• Cosmic Cavern
• Carroll County Historical Society
• Heritage Center Museum
• Saunders Museum

Annual Events:

• Carroll County Fair runs the week of Labor Day; other activities take place at the fairgrounds throughout the year.
• Saunders Memorial Muzzleloading Matches, one of the largest annual festivals in the state, takes place on the last weekend in September.
• Pioneer Days & Ozark Mountain Handcrafters Show
• Christmas on the Square from Thanksgiving to New Years

Bentonville, Arkansas

Bentonville, with an estimated population of 17,000, is about 15 miles west of Eureka Springs.

Annual Events:

• Benton County Fair
• Arts & Crafts Festivals
• Arkansas State Swim Meet
• Summer Sockhop
• Golf Tournaments
• Norba Mountain Bike Race
• Big Bass Tournament
• Bentonville Boogie, Country-Western Dance Competition
• Christmas on the Square and Holiday Trail of Lights

Harrison, Arkansas

Harrison, with a population of approximately 12,500, is about 40 miles east of Eureka Springs. Harrison boasts a town square with arts, crafts, antique shops, and boutiques as well as an historic downtown.

Attractions:

• Town Square
• Boone County Courthouse
• The Heritage Museum
• Mystic Cavern, Crystal Dome Cave
• Hurricane River Cave

Recreation:

• Baker Prairie
• Buffalo National River
• White River
• Bull Shoals Lake
• Boston Mountains
• Bear Creek Springs Trout Farm

Annual Events:

• Air Show

Mountain View, Arkansas

Mountain View, with a population of approximately 3,200, is about 120 miles southeast of Eureka Springs close to the Ozark National Forest and the White River. The town offers arts and crafts and antique shopping downtown as well as craft exhibitions and traditional music shows and workshops at the Ozark Folk Center.

Attractions:

• Ozark Folk Center
• Blanchard Springs and Caverns
• White River Scenic Railroad

Shows:

• Brickshy's Showboat Music Theater
• Leatherwoods Music Show
• Cash's White River Hoedown
• Jimmy Driftwood Barn and Folk Museum

Annual Events:

• Arkansas Folk Festival
• Annual Bean Fest
• Championship Outhouse Race
• White River Auto & Antique Car Show

Old Hardy Town, Arkansas

Old Hardy Town, with a population of approximately 1,000, is about 150 miles east of Eureka Springs and known as the Antique Capital of the Southern Ozarks. The town's historic Main Street includes many antique shops, specialty and craft stores.

Cherokee Village, Arkansas

Cherokee Village, 2 miles west of Hardy, is a 15,000-acre resort-retirement community with a population of 5,000, two champion golf courses, seven lakes, and various other recreational facilities.

Outdoor Activities:

• Spring River
• Hunting
• Horseback Riding
• Golf Course
• 7 Lakes with fishing, boating, swimming
• 2 Recreation centers

Batesville, Arkansas

Batesville, with a population of approximately 10,000, is 120 miles southeast of Eureka Springs on the White River. It is the oldest existing city in Arkansas with an historic district that offers historic attractions as well as antique shopping. The Batesville Speedway is also very popular.

Annual Events:

• Ozark Hawg Barbeque Championship
• Ozark Scottish Festival
• Fireworks on the River
• White River Water Carnival
• Independence County Fair
• Batesville Air Festival

Glenwood, Arkansas

Glenwood, with a population of approximately 1,500, is about 160 miles south of Eureka Springs on the Caddo River. It lies close to the Ouachita National Forest, 20 miles southwest of Hot Springs, and is surrounded by five large lakes within 30 miles. The area offers hunting, fishing, canoeing, swimming, camping, hiking, mountain biking, horseback riding, and golfing.

Attractions:

• Crater of Diamonds State Park
• Ka-Do-Ha Indian Village
• Norman Historical Monument
• Horse Racing, Oaklawn Park, Hot Springs
• Thermal Springs in Hot Springs

Annual Events:

• Pike County Fair in September
• Sawmill Days Festival in September
• Pike County Rodeo
• Dick Kelley Golf Classic
• Antique Car Show
• 15-K, 5-K, 1-K races
• Diamond Festival in June
• Gem, Mineral, and Jewelry Show in September

Clarksville, Arkansas

Clarksville, the Johnson County seat with a population of approximately 8,000, is 80 miles south of Eureka Springs between the Ozark National Forest and the Arkansas River. Besides its outdoor recreation activities of hiking, camping, mountain biking, and wildlife watching, Clarksville is the home of the Walton Fine Arts Center, other museums, and National Register structures.

Morrilton, Arkansas

Morrilton, in Conway County with a population of approximately 7,000, is about 110 miles southeast of Eureka Springs. The city has an historic district with county courthouse, museums, and shopping.

Attractions:

• Petit Jean State Park
• Museum of Automobiles
• Depot Museum
• Carnegie Library
• County Courthouse
• Sequoyah and Cherokee Parks
• Lakes Brewer and Overcup
• Arkansas River
• Winrock International

Annual Events:

• Great Arkansas Pig Out, August

Cassville, Missouri

Cassville, with approximately 2,800 people, is about 30 miles north of Eureka Springs by the Mark Twain National Forest. It is located near a plethora of outdoor recreational opportunities.

Attractions:

• Crystal Caverns
• Roaring River Waterslide
• 18-Hole Municipal Golf Course
• Roaring River Music Theater
• Golden Pioneer Museum
• Golden Promised Land Animal Park

Recreation:

• Roaring River State Park
• Nature Programs
• Fly Fishing Schools
• Table Rock Lake

Talihina, Oklahoma

Talihina, with a population of approximately 1,500, is about 160 miles southwest of Eureka Springs by the Ouachita National Forest. It offers numerous outdoor recreation activities on the Kiamichi River, Sardis and 8 other lakes, equestrian camps. The Choctaw Nation Museum is close by at Tuskahoma.

Attractions:

• Talimena State Park
• Talimena Scenic Byway
• Hang Gliding

Annual Events:

• Indian Festivals
• Rodeos
• Rides

Complementary

Branson, Missouri

The above cities are listed as direct competition with Eureka Springs because of their comparable size, cultural background and location. Contrary to popular opinion, Branson, Missouri is not in competition with Eureka Springs for tourism dollars. According to the survey questions addressed to the tour guides and bus tour coordinators conducted by LARC in conjunction with the Passion Play, they expressed that Branson and Eureka Springs are often combined in package deals to see the Passion Play, tour around Eureka Springs and then travel to Branson for a completely different experience. Those traveling with the tour reported enjoying both locations equally. The perception of competition could come from the hotel/motel industry. Tour operators revealed the rooms in Eureka Springs were not of the same quality as found in Branson for the same rate. This resulted in operators choosing Branson for their customers when selecting accommodations.

Table of Contents

Section I - Introduction

Section III - Attraction Development Options

Section IV - Tourism Strategy Development of the Tourism Program

Section V - Summary