Tourism keeps Tennessee thriving

4:06 p.m. Aug. 6, 2025

DUANE CROSS
MCO Publisher•Editor

Tourism isn’t just a big deal in Tennessee – it’s one of the state’s lifelines. In 2024, visitors spent $31.7 billion exploring everything from the Great Smoky Mountains to Beale Street. When you count the ripple effects, that money added up to a $49.8 billion boost for the state’s economy. It kept nearly 300,000 Tennesseans working and pumped billions into local and state budgets – helping pay for schools, public safety, and other services without raising household taxes.

According to the Tennessee Department of Tourism, out of all the jobs in Tennessee, one in every 24 depends on tourism. That’s almost all the folks working in hotels, more than a quarter of restaurant workers, and one in five in recreation. Those jobs brought in $8.6 billion in paychecks last year – a healthy 5.3% jump from 2023.

Last year, 147 million people visited Tennessee – 1.6% more than the year before. International travel grew a solid 7.4%, but almost everyone – over 99% – came from within the U.S. Day trips saw the most significant bump at 2.8%, while overnight stays held steady.

Most overnight guests came from right next door: Georgia, Alabama, Kentucky, plus Indiana and Florida. About 82% drove here, usually in groups of 2–3 people, and stayed just over three nights.

And here’s the thing – Tennessee has a loyal crowd. More than three out of four overnight visitors had been here before, and nearly half came back within the year. That kind of loyalty says a lot about the state’s charm and hospitality.

“Overnight visitation has a massive impact on local tourism economics, and is one of the biggest needs to grow the impact of visitation in Moore County,” said Ryan French, Executive Director & CEO of the South Central Tennessee Tourism Association. “In fact, statewide, an overnight visitor spends on average around 186% more than a day tripper.

“With sales taxes being the biggest driver of local impact, retention is key. One more burger, one more tank of gas, and especially one more overnight leads to big bucks for local businesses and local tax collections.”

Making Folks Feel Right at Home

On any given day in 2024, visitors spent about $87 million in Tennessee. That money trickled into cabins, diners, boutiques – you name it:

• Food & Beverage: $8.7B (28%)
• Lodging: $7.3B (24%)
• Transportation: $6.7B (21%)
• Recreation & Entertainment: $5.2B (16%)
• Retail: $3.5B (11%)

Retail saw the biggest jump, up 5.1% from the year before. Overnight guests spent an average of $337 per trip – 2.3% more than in 2023.

People didn’t just pass through – they made memories. Visitors dined at mom-and-pop restaurants, wandered through historic sites, hiked forest trails, took boats out on the water, and caught live music under the Tennessee night sky.

More than 70% of overnight travelers left “very satisfied” with their trip. That’s no surprise – Tennessee has a way of making folks feel right at home, whether they’re here for a family vacation, a music festival, or a business trip.

Tourism does more than fill hotels and restaurants – it fills public coffers. In 2024, visitor spending brought in $3.3 billion in state and local taxes. That’s enough to pay the salaries of more than 60,000 teachers. Without it, each Tennessee household would have paid an extra $1,170 in taxes.

Add federal taxes to the mix, and tourism generated $7.6 billion in total tax revenue. That money helps pave roads, fund schools, keep parks beautiful, and support the services that make Tennessee a great place to live – and visit.

Employment Shifting Toward Service Industry

The Tennessee Advisory Commission on Intergovernmental Relations published a report in September 2024 – State Tax Sharing with Cities: Premier Type Tourist Resort Cities as Models – that notes, “the Tennessee economy is moving onto its next phase, with manufacturing employment declining while service industry employment increases.”

Tourism contributed $25.4 billion to Tennessee’s GDP last year – about 2.9% of the state’s entire economy. It also fed other industries: food distributors, real estate, entertainment, and more.
Here’s who benefited most from the tourism ripple:

• Food & Beverage: $9.8B
• Lodging: $7.3B
• Finance/Real Estate: $6.4B
• Recreation & Entertainment: $4.5B

The average Tennessee overnight visitor earns about $89,000 a year, is a little older than the national average, and often travels with family. Fourteen percent of groups include someone with a disability – proof that accessibility is becoming more important for travelers.

Most people come here for vacations, family visits, festivals, or the great outdoors. Nashville and Memphis remain the top draws, but more visitors are discovering Tennessee’s rural towns, like Lynchburg.

Tennessee tourism is simple: People don’t just come here once; they come back. And when they do, they spend more, stay longer, and explore farther.