Tennessee’s record-high tourism: How visitor spending impacts your taxes

NASHVILLE, Tenn. (WKRN) — Tennessee tourism hit a high note last year, not just bouncing back, but beating pre-pandemic levels with a record $30.6 billion in direct visitor spending , which in turn, put cash back in Tennesseans’ pockets.

According to new data from the TN Dept. of Tourist Development, the state saw 144 million visitors in 2023 who spent a record-breaking $30.6 billion, generating $3.2 billion in direct state and local tax revenues.

As a result, visitor spending saved locals an average of $1,160 in taxes last year.

“I don’t think that people realize how these visitor taxes are one of the main reasons why we as residents don’t have a personal income tax and why our tax per capita as a Tennessean is one of the lowest in the nation,” Mark Ezell, commissioner of the TN Dept. of Tourist Development said. “It’s because we have a sales tax that actually captures, from visitors, money that we can then use for Tennesseans.”

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Visitors flock to Tennessee for multiple reasons, including the music, history, and the outdoors.

“Last year we went out to Memphis and we were looking for another musical city to visit,” Barry Weinstein, who was visiting Nashville from Philadelphia said.

“We both do like history,” Ken Schwartz, who was also visiting from Philadelphia added. “We got to also see some museums and visit the Grand Ole Opry last night.”

While it was Weinstein and Schwartz’s first time in Nashville, it wasn’t their first time in Tennessee. Ezell said the TN Dept. of Tourist Development has seen more visitors return to the state to see more sights.

“We’re getting to have those visitors come for repeated experiences because of our great historic pieces, our culinary, our great whiskey trails, and all the different things that are so wonderful for people to experience in Tennessee,” Ezell said.

The TN Dept. of Tourist Development is working to promote the state’s outdoor attractions, including BikeTN which compiles a list of 52 biking trails and backroads throughout Tennessee for visitors to explore.

“We know that’s a big deal to international travelers, and international travelers, as well as people from all over the country, can come and get on this app with Rid e with GPS and pick places to go in Tennessee, and also, see where they can go and grab a meal, where they can experience a waterfall or other key points of interest in those communities.”

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To learn more about BikeTN, click here.

The TN Dept. of Tourist Development will release county-by-county tourist spending for 2023 in August.

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