Tennessee tourism generated a record $30.6 billion in direct visitor spending and saw 144 million visitors to the state in 2023, according to newly released data from Tourism Economics and the Tennessee Department of Tourist Development.
Tennessee’s direct visitor spending increased 6.2% in 2023. This follows two consecutive years of double-digit growth, driving Tennessee to a 125% recovery over 2019 pre-pandemic levels.
"When tourism grows, Tennessee reaps the benefit with increased sales tax revenue," said Gov. Bill Lee. "Tourism boosts local economies, supports businesses and jobs, funds public services and creates a better quality of life for all Tennesseans. We welcome visitors from around the world to experience Tennessee's music, scenic outdoor beauty, culture and food from Mountain City to Memphis."
“Tennessee tourism is soaring, leading to benefits to Tennesseans,” said Mark Ezell, Commissioner of the Tennessee Department of Tourist Development. “Thanks to our destination marketing organizations across the state, in addition to our leisure and hospitality businesses in this amazing accomplishment. The record growth is a testament to the strength, resilience, determination and efforts of our people and the work of our industry in bringing visitors to enjoy why Tennessee Sounds Perfect.”
According to the data, state tourism generated $30.6 billion in direct visitor spending in 2023, a 25% increase over two years, with visitors spending and average of $84 million each day in 2023
Among the tax benefits to Tennesseans, visitor spending generated $3.2 billion in direct state and local tax revenues in 2023. Without tourism, each Tennessee household would have to pay an additional $1,160 in taxes each year. The State of Tennessee collected $1.9 billion in tax revenues, while city and county governments collected $1.25 billion in tax revenues.
Average taxes on direct visitor spending reduces the burden on community residents to fund infrastucture, education health and safety services, and visitor spending sustained 191,522 direct jobs, one of every 24 jobs in the state. In fact, employment supported by visitor activity increased 3% in 2023, rebounding to 98% of pre-pandemic levels
Among other stats, domestic visitor spending is 127% recovered to pre-pandemic (2019) levels, while international visitor spending is 81.6% recovered to pre-pandemic (2019) levels.
Overall, Tennessee visitors topped 144 million in 2023, up three million over 2022, led by relatively stronger growth in day visits.
The Tennessee Department of Tourist Development works with the Tennessee Tourism Committee, local convention and visitors’ bureaus, chambers of commerce, city and county leaders, tourism attractions and the hospitality industry in all 95 counties to inspire travel to the state.