Tennessee tourism keeps breaking records.
From Graceland to Broadway and the Great Smoky Mountains National Park, visitors spent about $89 billion every day in 2025 across Tennessee, according to a new state Department of Tourist Development report. That equated to a record $32.5 billion in direct spending throughout the year.
“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," Gov. Bill Lee said.
The report found that visitor spending nearly doubled across Tennessee since 2018, hitting 40% growth while the nationwide average rate is 22%. State records show that approximately 150 million visitors traveled to Tennessee in 2025,
a 2.1% increase over 2024.
“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,” Tourism Commissioner Mark Ezell said in a statement. “This growth matters to Tennesseans."
The industry supports 196,415 jobs and generated $8.9 billion in personal income for Tennesseans in 2025, according to the state.
Ezell's office asserted that $2 billion in state revenue and $1.3 billion in local tax revenue generated by the tourism industry in 2025 saved residents around $1,180 each in taxes annually on average. Moreover, $874 million of the $2 billion that hospitality businesses contributed in state sales taxes in 2025 went to the state's education fund. In all, tourism is responsible for a $700 million increase in annual taxable revenue for Tennessee over the last eight years, state officials said.
The report emphasized that Tennessee visitors "over-indexed on shopping and dining during their trip, particularly at locally owned businesses and unique or local dining establishments." In Nashville, some local business owners have begun to question how much support they're receiving in comparison to some of the nationwide chains that are moving to Tennessee, like In-N-Out Burger and Starbucks.
Locals have also questioned whether Tennessee has the infrastructure to support its expanding tourism industry, especially as Nashville prepares to welcome massive events like the Super Bowl in 2030. Roughly $10.25 billion in infrastructure investments are scheduled to be complete or nearing completion in Nashville by then.
Individual county data, including that for Nashville and Davidson County, will be released in September, state officials said.
Hadley Hitson covers business news for The Tennessean. She can be reached at hhitson@tennessean.com. To support their work,subscribe to The Tennessean.
This article originally appeared on Nashville Tennessean: Tennessee tourists spent $89M a day in 2025, state report finds
