Smokies Coalition Kept Park Open Through Federal Shutdown
(UCBJ) – Tennessee’s tourism economy has grown 40% since 2018, nearly double the national growth rate of 22%, culminating in a record $32.5 billion in direct visitor spending in 2025.
The Tennessee Department of Tourist Development announced the milestone alongside Gov. Bill Lee and tourism leaders at the Appalachian Clubhouse in the Great Smoky Mountains National Park.
The Great Smoky Mountains National Park remains a cornerstone of the state’s tourism success as the most visited national park in the country. During last fall’s federal government shutdown, a coalition of state, local, nonprofit and tribal partners worked together to keep the Smokies open for 40 days. More than 2.4 million people visited during that span even as most national parks across the country closed. The collaborative effort sustained tourism activity and supported local businesses, jobs and tax revenue during one of the region’s busiest economic seasons.
Tourism is a powerful economic driver across all 95 counties, generating $3.3 billion in state and local tax revenue and saving each Tennessee household $1,180 annually on average.
“We are grateful to the local, state and federal partners who worked together to ensure Great Smoky Mountains National Park remained open for all visitors to enjoy,” said Gov. Bill Lee. “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.”
“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,” said Mark Ezell, Commissioner of the Tennessee Department of Tourist Development. “This growth matters to Tennesseans. I’m so honored to work with our team and the incredible tourism and hospitality industry to achieve these results.”
2025 Economic Impact of Travel in Tennessee Highlights
Visitor spending in Tennessee grew by 40% since 2018, nearly double the national growth rate of 22%. A record $32.5 billion in direct visitor spending marked an increase of 2.7% over the previous year, significantly higher than the national growth rate of 1.9%. Tennessee welcomed 150 million visits in 2025, with visitors spending $89 million per day.
Tourism Saves Taxpayers Money and Brings in State and Local Tax Revenue
The industry generated $2 billion in state revenue and $1.3 billion in local tax revenue in 2025, marking an increase of nearly $700 million in annual taxable revenue for the state since 2018. That growth saves residents $1,180 in taxes each year.
Tourism Supports Education Funding
Tourism generates significant sales tax revenue for the state, and its growth directly contributes to education funding. According to monthly collections data from the Tennessee Department of Revenue, Leisure and Hospitality sector businesses contributed $2 billion annually to state sales tax collections in 2025, with $874 million going directly to the state’s education fund.
Tourism Supports Local Businesses
Compared to the U.S. norm, visitors to Tennessee over-indexed on shopping and dining during their trips, particularly at locally owned businesses and unique or local dining establishments, reinforcing the value of the type of tourists Tennessee attracts.
The full 2025 Economic Impact on Travel Report and direct visitor spending data for all 95 counties will be released in September.
Image by ArthurHidden on Magnific.
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