According to newly released data from Tourism Economy and the Tennessee Tourism Development Agency, Tennessee’s tourism industry will generate a record $30.6 billion in direct visitor spending, driving 144 million visitors to the state in 2023. Tennessee’s direct visitor spending will grow 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.
Rutherford County’s tourism revenues have increased significantly each of the past three years, and that upward trend is expected to be confirmed again when county-by-county figures for last year are released.
Tourism revenues across the state dipped during the COVID-19 pandemic but have increased in subsequent years. Tourism revenues declined as COVID cases soared in 2020. As 11 million people nationwide tested positive for COVID, tourism revenues plummeted to $472.2 million four years ago, according to Rutherford County’s year-end calculations. But between the end of 2020 and the end of 2022, tourism revenues increased by $272.2 million. Total visitor spending in Rutherford County last year could be between $803.9 million and $878.9 million, according to the report.
Year-end data on tourism revenue for Rutherford County is expected to be released by the state in about a week, and once those figures are released, WGNS will confirm the exact increase in tourism revenue.
“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 Tourism generated $30.6 billion in direct visitor spending in 2023, a 25% increase over two years Tennessee visitors spent $84 million per day in 2023 Tax Benefits for Tennesseans Visitor 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 Average tax rates on direct visitor spending reduce the burden on local residents to fund infrastructure, education, health and safety services Visitor spending sustains 191,522 direct jobs, accounting for 1 in 24 jobs in the state Jobs supported by visitor activity grew 3% in 2023 and recovered to 98% of pre-pandemic levels Domestic visitor spending recovered 81.6% to pre-pandemic (2019) levels, and Tennessee’s visitor numbers will exceed 144 million in 2023, 3 million more than in 2022. This is due to the relatively strong growth in day visitor numbers.
*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.
