According to newly released data from Tourism Economics and the Tennessee Tourism Development Agency, Tennessee’s tourism industry will generate a record $30.6 billion in direct visitor spending in 2023, with 144 million visitors coming to the state. Tennessee’s direct visitor spending will increase 6.2% in 2023. This follows two consecutive years of double-digit growth and will put Tennessee back 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.”
Key highlights from the Travel Economic Impact 2023 report:
Tennessee’s tourism industry is expected to generate $30.6 billion in direct visitor spending in 2023, a 25% increase over the two-year period.
Tennessee tourists to spend $84 million per day in 2023
Tax Benefits for Tennesseans
Tourist spending generated $3.2 billion in direct state and local tax revenue in 2023. Without tourism, each Tennessee household would have to pay an additional $1,160 in taxes each year.
Tennessee collected $1.9 billion in tax revenue.
City and county governments collected $1.25 billion in tax revenue.
The average tax rate on direct visitor expenditures reduces the burden on local residents to fund infrastructure, education, health and safety services.
Tourist spending supported 191,522 direct jobs, equivalent to 1 in every 24 jobs in the state.
Employment, fuelled by visitor activity, grew by 3% in 2023, recovering to 98% of pre-pandemic levels.
Domestic tourist spending recovers to 127% of pre-pandemic (2019) levels
International visitor spending recovered to 81.6% of pre-pandemic (2019) levels.
Tennessee’s visitor numbers will exceed 144 million in 2023, an increase of 3 million over 2022, driven by relatively strong growth in day visitors.
*Study conducted by Tourism Economics on behalf of the Tennessee Department of Tourism Development
The Tennessee Tourism Development Department (TDTD) plans to release a full economic impact report on travel for 2023 and direct visitor spending data for all 95 counties in August 2024. TDTD has developed a strong relationship with the Tennessee Department of Revenue to ensure the economic impact figures are aligned with the reality of tax collection data.
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.
