Smokies help drive record tourism growth as Tennessee visitors spend $32.5 billion statewide.
GREAT SMOKY MOUNTAINS NATIONAL PARK, Tenn. — Tennessee’s tourism economy grew 40% since 2018, nearly twice the national growth rate, reaching a record $32.5 billion in direct visitor spending in 2025, state tourism officials announced Friday.
The Smokies remain a cornerstone of Tennessee’s tourism industry as the most visited national park in the country.
The park also played a significant role in supporting the state’s tourism economy during last fall’s federal government shutdown.
A coalition of state, local, nonprofit and tribal partners worked together to keep the park open for 40 days while most national parks across the country were closed. More than 2.4 million people visited the Smokies during that period.
State officials said keeping the park open helped sustain tourism activity, supporting local businesses, jobs and tax revenue during one of the region’s busiest economic seasons.
“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,” Lee said.
Tennessee welcomed approximately 150 million visits in 2025, with visitors spending an average of $89 million per day.
The $32.5 billion in direct visitor spending represented a 2.7% increase from 2024, compared with a 1.9% national growth rate.
Tourism also generated an estimated $3.3 billion in state and local tax revenue in 2025, including $2 billion in state revenue and $1.3 billion in local revenue.
State officials say that revenue saves Tennessee households an average of $1,180 in taxes each year.
Tourism also contributed to education funding. Leisure and hospitality businesses generated about $2 billion annually in state sales tax collections in 2025, with $874 million going directly to the state’s education fund, according to Tennessee Department of Revenue data.
The tourism industry also continues to support local businesses, with visitors spending heavily on shopping and dining, particularly at locally owned businesses and local dining establishments.
Mark Ezell, commissioner of the Tennessee Department of Tourist Development, credited state investments and the state’s tourism and hospitality industry for the continued growth.
“I’m so honored to work with our team and the incredible tourism and hospitality industry to achieve these results,” Ezell said.
The full 2025 Economic Impact of Travel report, including direct visitor spending data for all 95 Tennessee counties, is expected to be released in September.
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