Tennessee’s tourism economy continues to surge, achieving a record $32.5 billion in direct visitor spending in 2025 and driving a remarkable 40% growth rate since 2018—nearly double the national average of 22%.

Announced by Gov. Bill Lee and state tourism leaders at the Appalachian Clubhouse in the Great Smoky Mountains National Park, the new data highlights tourism’s vital role as the state’s second-largest industry.

Key Highlights

• Economic Impact: Visitors spent $89 million per day in 2025, contributing to a total of 150 million statewide visits.

• Tax Relief & Revenue: The sector generated $3.3 billion in combined state and local tax revenue, saving the average Tennessee household $1,180 annually.

• Education Funding: Leisure and hospitality businesses contributed $2 billion in state sales tax collections, including $874 million directed straight to the state’s education fund.

• Resilience: Officials credited collaborative efforts—including a coalition that kept the Great Smoky Mountains National Park open for 40 days during a federal government shutdown—for sustaining local businesses and jobs during a crucial economic window.

The full 2025 Economic Impact on Travel Report, featuring individual county data for all 95 counties, will be released in September.