CHATTANOOGA, Tenn. — Tennessee’s thriving tourism industry is not just contributing to a boom for businesses but providing significant tax savings for local residents too, according to recent data. Following a slow period caused by the global pandemic, the state is setting record highs in tourists’ spending, which increased over 6% from 2022 to 2023.
Tennessee Department of Tourist Development Commissioner, Mark Ezell, revealed that one major driving factor for this rise is the state’s expansive outdoor attractions. He said, “This combination of what the pandemic did in exposing Tennessee’s great outdoor assets caused us to have a big lift, and we’ve been staying there ever since.”
As the state continues to attract tourists from across the country and abroad, residents are reaping the benefits in the form of tax relief. According to Commissioner Ezell’s office, Tennessee residents saved over $1,100 in taxes each year due to the $3.2 billion generated by visitors in 2023.
He added, “We were the fifth rated most beneficial state in America from visitor taxes,” a testament to the strength and resilience of Tennessee’s tourism industry in the face of a global crisis.
One of the most noteworthy trends emerging from these data is the preference for outdoor activities among tourists. Tennessee’s combination of history and natural beauty continues to draw people, even as normalcy gradually seeps back into daily life. As Ezell notes, “What we found is people rushed to our outdoors. We got that unmatched scenic beauty, and people come now that more normal life has returned.”
Chattanooga, surrounded by natural beauty and steeped in history, has been drawing considerable attention. In fact, it is working towards becoming America’s first national park city by 2025. Chattanooga Mayor Tim Kelly’s recent establishment of the Urban Ecology Preserve along the South Chickamauga Creek is a step towards realizing this goal.
Brian Smith, a well-known figure associated with Chattanooga Outdoors, commented, “They kind of really set their eyes on Chattanooga, because when you look around, we’re surrounded by natural beauty and plenty of history.”
According to data from Commissioner Ezell’s office, visitors in Tennessee totaled over $144 million in 2023, benefiting residential taxpayers and boosting local economies. The full 2023 economic impact on travel report, inclusive of visitor data for each county, is set to be released next month.
Tennessee’s remarkable turnaround from post-pandemic struggles to a significant growth in tourism demonstrate the state’s resilience and the enduring appeal of its diverse attractions. As Tennessee aims to continually boost its tourism industry, residents can look forward to enjoying the tax benefits that come with the success, and the world gets to explore the unparalleled beauty and rich history Tennessee has to offer.
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