Tennessee's Latest Tourism Boom Might Surprise You

According to Travel and Tour World, Tennessee is one of seven states boasting a record year for tourism in 2024. $31.7 billion in tourist dollars helped boost the state economy. This surge was driven by a thriving, and legendary music scene — Tennessee is home to The Grand Ole Opry, Elvis' Graceland, and the live music hub that is Nashville — and beautiful natural scenery made up of mountains, beaches and national parks. This represented, as Tennessee's Department of Tourist Development reports, around $1.7 billion in additional earnings from tourism in 2024 compared to the previous year. The Department points out the impact was felt in local and state coffers, bringing about $3.3 billion in tax revenue, or an equivalent average of $1,170 in savings for each Tennessean. As Tennessee is already one of the few states without an income tax, this increased traffic from tourists could be a major asset in the eyes of the state's taxpayers. 

While 2024 was undeniably great for Tennessee, it wasn't by any means an outlier year. In fact, the Department of Tourist Development reports the state set tourism records the previous three consecutive years, and that Tennessee tourism's growth rate has been double the national average since 2018. So, what is it about the Volunteer State's attractions that spurred tourists to spend an average of $87 million per day in 2024? 

According to the Tennessee Entertainment Commission, Tennessee's music industry employs over twice the national average of industry professionals, making it the No. 1 spot in the U.S. for employment in the sector. It's also first in employment in music publishing, with more than ¼ of the country's music publishers residing there.

Tennessee takes the bronze for record distribution and production. The Entertainment Commission reports a 49% increase in employment opportunities since 2012 brought the gross regional product of Tennessee to $6.4 billion in 2022, generating $365 million in tax revenue for the same period. In the next decade, the Commission reports the industry is anticipated to grow by 19%, helping Tennessee remain one of the states with the best economies.

As per the 2024 Greater Nashville Music Census, work in the industry generated $220 million in pay for those employed in the sector, representing more than half of their yearly earnings and an average of $52,000 per year. With the impact of national debt surpassing $35 trillion, it's a good sign for the financial health of the state and its populace that 76% of local music professionals surveyed have never required financial assistance. According to The Tennessean, Bonnaroo, a single four-day music festival, generated $339.8 million for the state in 2023, as well as $5.1 million in regional tax revenue. People flooding the state for the festival spent $287 million to attend.

For those who are less interested in live music — or at least equally interested in natural amenities — state parks also contribute to Tennessee's appeal for tourists. According to the Tennessee Department of Environment & Conservation, state parks employed 13,587 people in 2024, the equivalent of $550 million for households in Tennessee. The parks have provided $111.8 million in state taxes, while regionally, local areas made $22.1 million in local tax revenue. State parks added the equivalent of $1.1 billion to Tennessee's gross domestic product. When you consider there were 147 million visits to the state in 2024, that should come as no surprise.

Accommodations in these parks make enjoying the natural environment a lot easier, with cabins standing in for hotel rooms in places like Big Ridge State Park. As spacious cabins start at around $100, the question of whether to rent a vacation home or book a hotel room to save money is much less of a conundrum in Tennessee.