Tennessee tourism achieves record $32.5bn visitor spending in 2025

Tennessee tourism grew 40pc since 2018, nearly double national average of 22pc
Record $32.5bn direct visitor spending in 2025, up 2.7pc year-on-year
Tourism generated $3.3bn in state and local tax revenue
Saved each Tennessee household $1,180 annually in taxes
150m visits and $89m daily visitor spending recorded in 2025

Tennessee’s tourism economy has grown 40pc since 2018, nearly double the national growth rate of 22pc, culminating in a record $32.5bn in direct visitor spending in 2025.

The Tennessee Department of Tourist Development announced the results alongside Goernor. Bill Lee and tourism leaders at an event 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 autumn’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 2.4m 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.

According to monthly collections data from the Tennessee Department of Revenue, Leisure and Hospitality sector businesses contributed $2bn annually to state sales tax collections in 2025, with $874m going directly to the state’s education fund. Compared to the US 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.

Goernor Bill Lee shared. “Tourism is a powerful economic driver across all 95 counties, generating $3.3bn 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. 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.”

Mark Ezell, Commissioner of the Tennessee Department of Tourist Development, shared. “This growth matters to Tennesseans. I’m so honoured to work with our team and the incredible tourism and hospitality industry to achieve these results. Visitor spending in Tennessee has grown by 40pc since 2018, nearly double the national growth rate of 22pc. A record $32.5bn in direct visitor spending represents an increase of 2.7pc over the previous year, significantly higher than the national growth rate of 1.9pc. Tennessee welcomed 150m visits in 2025, with visitors spending $89m per day. The industry generated $2bn in state revenue and $1.3bn in local tax revenue in 2025, which marks an increase of nearly $700m in annual taxable revenue for the state of Tennessee since 2018. This saves residents $1,180 in taxes each year. Tourism generates significant sales tax for the state, and its growth directly contributes to better education funding.”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,”