Tennessee Tourism, Gov. Lee Commend State's Economic Impact & Record $32 Billion Visitor Spending

Full 2025 Economic Impact of Travel Report can be found here.

NASHVILLE, Tenn. (Aug. 4, 2026) -Tennessee's tourism economy has grown 40% since 2018, nearly double the national growth rate of 22%, culminating in a record $32.5 billion in direct visitor spending in 2025. The Tennessee Department of Tourist Development announced this feat alongside Gov. Bill Lee and tourism leaders today at the Appalachian Clubhouse in the Great Smoky Mountains National Park.

The Great Smoky Mountains National Park is a cornerstone of Tennessee's tourism success as the most visited national park in the country. During last fall's federal government shutdown, a coalition of state, local, nonprofit and tribal partners came together to keep the Smokies open for 40 days. More than 2.4 million people visited during that timeframe, despite most national parks across the country being closed. The collaborative effort to keep the Smokies open sustained tourism activity, supporting local businesses, jobs and tax revenue during one of the region's busiest economic seasons.

Tourism is a powerful economic driver across all 95 counties, generating $3.3 billion in state and local tax revenue and saving each Tennessee household $1,180 annually on average.

"We are grateful to the local, state and federal partners who worked together to ensure Great Smoky Mountains National Park remained open for all visitors to enjoy," said Gov. Bill Lee. "As Tennessee's second largest industry, tourism is a powerful economic driver in all 95 counties that creates greater opportunity for families and communities across the state."

"I'm so thankful to the Lee administration and the General Assembly for their record investments over the years to help Tennessee succeed, grow and lead on a national stage," said Mark Ezell, Commissioner of the Tennessee Department of Tourist Development. "This growth matters to Tennesseans. I'm so honored to work with our team and the incredible tourism and hospitality industry to achieve these results."

2025 Economic Impact of Travel in Tennessee Highlights

• Visitor spending in Tennessee has grown by 40% since 2018, nearly double the national growth rate of 22%
• A record $32.5 billion in direct visitor spending, an increase of 2.7% over the previous year, significantly higher than the national growth rate of 1.9%
• Tennessee welcomed 150 million visits in 2025
• Visitors spent $89 million per day in 2025

Why This Matters to Tennesseans

• Tourism Saves Taxpayers Money & Brings in State & Local Tax Revenue
  • The industry generated $2 billion in state revenue and $1.3 billion in local tax revenue in 2025, which marks an increase of nearly $700 million in annual taxable revenue for the state of Tennessee since 2018.
  • This saves residents $1,180 in taxes each year.

• Tourism Supports Education Funding
  • Tourism generates significant sales tax for the state, and its growth directly contributes to better education funding
  • According to monthly collections data from the Tennessee Dept. of Revenue, Leisure and Hospitality sector businesses contributed $2 billion annually to state sales tax collections in 2025; $874M of which went directly to the state's education fund.

• Tourism Supports Local Businesses
  • Compared to the U.S. norm, visitors to Tennessee over-indexed on shopping and dining during their trip, particularly at locally owned businesses and unique or local dining establishments, reinforcing the value of the type of tourists Tennessee attracts

The full 2025 Economic Impact on Travel Report and direct visitor spending data for all 95 counties will be released in September. The statewide report, including methodology, can be found here. All data is sourced from the Tennessee Department of Tourist Development and Tourism Economics, with national benchmarks provided by U.S. Travel Association.

About Tennessee Department of Tourist Development

The Tennessee Department of Tourist Development (TDTD) is dedicated to driving economic growth and tourism in all 95 counties. TDTD's global marketing efforts increase visitation to Tennessee, which boosts tax revenue, creates jobs and attracts new investment across the state. Tennessee is a global destination of choice offering visitors world-class music, live entertainment, family-friendly experiences, charming communities, innovative and classic culinary creations, renowned scenic beauty and outdoor adventure-all centered at the crossroads of rich history and unrivaled hospitality. Vacations "sound perfect" in Tennessee. Visit TNVacation.com and follow @TNVacation on social media for travel inspiration.

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