Tennessee tourism saw another record-breaking year
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A surge of visitors led to another record-breaking year for Tennessee tourism, with tourists' spending hitting a high-water mark of $32.5 billion.
Why it matters: Sales taxes are Tennessee's biggest revenue driver. Visitor spending at restaurants and hotels feeds directly into the pipeline that funds our schools, roads and other major projects.
State of play: Tennessee's tourism industry continues to outperform the country as a whole, according to a new economic impact analysis released Tuesday by the Department of Tourist Development.
- Tennessee's visitor spending was up 2.7% in 2025 compared to the national growth rate of 1.9%.
- Nearly 150 million visitors came to Tennessee in 2025.
The big picture: Tennessee tourism has been on a remarkable run, with visitor spending surging 40% from 2018 to 2025. That's nearly twice the national growth rate cited in the state report.
Reality check: Year-to-year data shows Tennessee's explosive post-pandemic rebound is settling into a slower pace.
- For instance, annual spending growth sat at 19% in 2022, 6.2% in 2023 and 3.3% in 2024.
Follow the money: Restaurants, bars and attractions like Dollywood, the Grand Ole Opry and Graceland were the workhorses driving the biggest growth in tourist spending last year.
- Food and beverage spending was up 4.9% to $9.16 billion. Recreation spending increased 4.5% to $5.42 billion.
- Lodging revenue was nearly flat year over year, at $7.38 billion.
Between the lines: Individual visitors didn't meaningfully expand their budgets in 2025, according to the state analysis, which could reflect the pressures of inflation.
- The increasing number of visitors pushed overall spending up.
The intrigue: State officials announced the results in the Great Smoky Mountains National Park, a location that underscored how deeply public decisions can affect the visitor economy.
- During last fall's federal government shutdown, state, local, tribal and nonprofit partners paid to keep most of the park operating. The coalition spent about $125,000 per week to keep most of its 275 full-time employees working.
- The state says 2.4 million people visited during the 40 days covered by the partnership.
The other side: International visitation fell 8.8% in 2025. That's consistent with national figures showing international tourism sinking under the Trump administration.
- That's a significant hit, because international visitors are big spenders. They dropped $1,366 per person during Tennessee visits in 2025.