Tennessee’s tourism industry will generate a record $30.6 billion in direct visitor spending, driving 144 million visitors to the state in 2023, according to newly released data from the Office of Tourism Economics and the Tennessee Tourism Development Agency.
In-person visitor spending in Tennessee grew 6.2% in 2023. This follows two consecutive years of double-digit growth and will put Tennessee on track to recover 125% from pre-pandemic 2019 levels.
“When tourism grows, Tennessee benefits from increased sales tax revenue,” said Governor Bill Lee. “Tourism boosts local economies, supports businesses and jobs, funds public services and improves the quality of life for all Tennesseans. From Mountain City to Memphis, we welcome visitors from around the world to experience Tennessee’s music, natural beauty, culture and food.”
“Tourism in Tennessee is booming, benefiting Tennesseans,” said Tennessee Tourism Development Commissioner Mark Ezell. “This incredible achievement is a credit to our tourism marketing organizations and leisure and hospitality businesses across the state. This record growth is a testament to the strength, resilience, determination and hard work of our people, and the efforts of our industry to ensure visitors enjoy Tennessee’s Sound Perfect.”
According to the data, the state’s tourism industry will generate $30.6 billion in direct visitor spending in 2023, up 25% over the two-year period, with average daily visitor spending in 2023 at $84 million.
Among the tax benefits for Tennesseans is that tourist spending will generate $3.2 billion in direct state and local tax revenue in 2023. Without tourists, Tennessee households would have to pay an additional $1,160 in taxes each year. The state of Tennessee collected $1.9 billion in tax revenue, and city and county governments collected $1.25 billion in tax revenue.
The average tax rate on direct visitor spending reduced the burden on local residents to fund infrastructure, education, health and safety services, and visitor spending sustained 191,522 direct jobs, accounting for 1 in 24 jobs in the state. In fact, jobs supported by visitor activity grew 3% in 2023, recovering to 98% of pre-pandemic levels.
Other statistics show that domestic tourist spending has recovered 127% from pre-pandemic (2019) levels, while international tourist spending has recovered 81.6% from pre-pandemic (2019) levels.
Overall, visitor numbers to Tennessee are expected to exceed 144 million in 2023, 3 million more than in 2022, driven by relatively strong growth in day-trip visitors.
The Tennessee Tourism Development Agency works with the Tennessee Tourism Commission, local convention and visitor information offices, chambers of commerce, city and county leaders, and the tourism and hospitality industries in all 95 counties to promote travel to the state.
