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.

Tourism revenue in Rutherford County has risen significantly every year for the past three years. When county-by-county numbers for last year are released, this upward trend is expected to be confirmed once again.

During the COVID-19 pandemic, tourism revenue dropped across the state, but it has increased in the years that followed. As COVID cases surged in 2020, tourism dollars decreased. Year-end calculations in Rutherford County showed that tourism revenue plummeted to $472.2 million four years ago, as 11 million people tested positive for COVID nationwide. However, tourism revenue increased by $272.2 million between the end of 2020 and the end of 2022. Reports indicate that last year's total visitor spending in Rutherford County could be between $803.9 million and $878.9 million.

Year-end data on tourism revenue in Rutherford County will be released by the state in about a week. Once those numbers are available, WGNS will confirm the exact increase in tourism revenue.

"When tourism grows, Tennessee reaps the benefit with increased sales tax revenue," said Gov. Bill Lee who went on to say, "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.”

Key Highlights from Economic Impact of Travel 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 each day in 2023
• 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
  • 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
• Visitor spending sustained 191,522 direct jobs, one of every 24 jobs in the state
  • Employment supported by visitor activity increased 3% in 2023, rebounding to 98% of pre-pandemic levels
• Domestic visitor spending is 127% recovered to pre-pandemic (2019) levels
• International visitor spending is 81.6% recovered to pre-pandemic (2019) levels
• Tennessee visitors topped 144 million in 2023, up three million over 2022, led by relatively stronger growth in day visits

*Research conducted by Tourism Economics, commissioned by the Tennessee Department of Tourist Development

The Tennessee Department of Tourist Development (TDTD) will release the full 2023 Economic Impact on Travel Report and direct visitor spending data for all 95 counties in August 2024. TDTD fostered a strong relationship with the Tennessee Department of Revenue to ground the economic impact numbers in the reality of tax collection data.