Tennessee has emerged as a top destination for tourists, with 2024 marking a record-breaking year for the state’s tourism industry. According to reports, the state generated $31.7 billion in tourist spending, significantly contributing to its economy. This growth was fueled by a combination of factors, including Tennessee’s world-renowned music scene and its stunning natural landscapes.
The state is home to iconic attractions such as The Grand Ole Opry, Elvis’ Graceland, and the vibrant city of Nashville, which serves as a live music hub. These cultural landmarks have long drawn visitors from around the globe. In addition, Tennessee’s diverse natural scenery—ranging from mountainous regions to beaches and national parks—has also played a key role in attracting tourists.
According to the Tennessee Department of Tourist Development, the state saw an additional $1.7 billion in earnings from tourism in 2024 compared to the previous year. This surge had a direct impact on local and state revenues, generating $3.3 billion in tax revenue. For each Tennessean, this equates to about $1,170 in savings. Given that Tennessee does not impose an income tax, this influx of tourism dollars could be particularly beneficial for residents.
While 2024 was a standout year, it wasn’t an isolated event. The Department of Tourist Development noted that Tennessee set tourism records for three consecutive years prior to 2024. Since 2018, the state’s tourism growth rate has been double the national average. So, what makes Tennessee so appealing to travelers?
Music is a moneymaker in Tennessee
Tennessee’s music industry is a major driver of its economy. According to the Tennessee Entertainment Commission, the state employs more than twice the national average of professionals in the music sector, making it the top U.S. state for employment in this field. It also leads in music publishing, with over a quarter of the country’s music publishers based in Tennessee.
In terms of record distribution and production, Tennessee takes third place. The Commission reported a 49% increase in employment opportunities since 2012, which contributed to a gross regional product of $6.4 billion in 2022. That year alone, the industry generated $365 million in tax revenue. Looking ahead, the Commission expects the industry to grow by 19% over the next decade, ensuring Tennessee remains a strong economic player.
According to the 2024 Greater Nashville Music Census, the music industry generated $220 million in wages for those employed in the sector. This represents more than half of their annual earnings, with an average salary of $52,000 per year. With the national debt exceeding $35 trillion, it’s encouraging that 76% of local music professionals surveyed have never needed financial assistance.
One example of the economic impact of Tennessee’s music scene is the Bonnaroo Music Festival. In 2023, the four-day event generated $339.8 million for the state, along with $5.1 million in regional tax revenue. Attendees spent $287 million to attend the festival, showcasing the significant economic boost that large-scale events can bring.
Scenic landscapes keep tourists coming back
For those who prefer nature over music, Tennessee’s state parks offer a compelling alternative. According to the Tennessee Department of Environment & Conservation, state parks employed 13,587 people in 2024, providing $550 million in household income. These parks also contributed $111.8 million in state taxes and $22.1 million in local tax revenue.
The parks added $1.1 billion to Tennessee’s gross domestic product, and with 147 million visits recorded in 2024, it’s clear why they remain a popular destination. The availability of accommodations such as cabins at places like Big Ridge State Park makes it easier for visitors to enjoy the natural beauty of the state.
With cabin rentals starting at around $100, many travelers find it more cost-effective to stay in vacation homes rather than hotels. This affordability, combined with the state’s rich cultural and natural offerings, continues to attract tourists and bolster Tennessee’s economy.
