NASHVILLE – The 2022 Economic Impact of Travel on Tennessee report reveals tourism in Davidson County generated a record $9.97 billion in direct visitor spending, a 35% increase from 2021. If it were not for state and local taxes generated by tourism, each Nashville household would pay $3,477 more in state and local taxes, according to the report.
Visitors spend an average of $27 million a day in Nashville, fueling local businesses and bolstering tax revenues –making hospitality one of the city’s largest industries.
“With nearly $10 billion in visitor spending last year, Nashville leads the way as the highest contributor to tourism spending across Tennessee, accounting for over one-third of visitor spending statewide and providing vital revenue to fund essential local and state government operations,” said Deana Ivey, President and CEO of the Nashville Convention & Visitors Corp. “Our success is built on Nashville’s authenticity, the wealth of our remarkable assets, the power of the Music City brand and being a welcoming city.”
Visitor spending in Davidson County generated a record $1.02 billion in state and local tax revenue, according to the state data. Of that, $409 million was in local taxes. That $409 million is equivalent to the annual operating budgets of the Metro Nashville Police Department and the Metro Health Department. As well, $612 million was generated in state taxes – an amount that is nearly equivalent to the annual operating budget of the Tennessee Environment and Conservation Department.
The Tennessee Department of Tourist Development released the new data at the industry’s annual Governor’s Conference in Knoxville yesterday, and celebrated growth across all 95 Tennessee counties.
“Tennessee is thriving as tourism continues to soar, from our large cities to small towns,” said Mark Ezell, Commissioner of the Tennessee Department of Tourist Development. “Our industry’s hard work is paying off with record levels of visitor spending and significantly outpacing inflation. It is our privilege to showcase these numbers and express our gratitude to our partners, attractions, elected leaders and visitors who made a record year for Tennessee.”
According to the state report, direct tourism-related employment included 47,046 jobs in Davidson County, an annual increase of 30% compared to 2021. Additionally, in assessing broader economic impact, the report reflects 76,823 industry jobs in Davidson County in 2022, encompassing a more expansive range of positions as part of the hospitality sector.
Growth markets for Nashville’s tourism industry include broadening the visitor base to bring back convention and business clients to pre-pandemic levels and focusing on visitors looking for a high-end experience due to recent upscale hotel developments; increasing international visitors; and capitalizing on opportunities for major events and conventions from the enclosed stadium opening in 2027.
In partnership with Ryman Hospitality Properties, the NCVC is developing a Hospitality Industry strategic plan that addresses key topics to bridge the city to future success. Those topics include public safety, the unique needs of international travelers and issues of workforce and transportation. The plan also looks at major opportunities like the East Bank, promoting multicultural assets and disruptions to downtown.
Statewide, Tennessee tourism generated nearly $29 billion in direct visitor spending and saw 141 million visitors to the state in 2022. Tax dollars generated by tourism support important public services like education, health and safety.
The 2022 Economic Impact on Travel Report includes county snapshots, comprehensive models of the economic impact of spending by industry and an online interactive dashboard for the latest state and county information.
Tennessee Department of Tourist Development
Tennessee is the home of the blues, bluegrass, country, gospel, soul, rockabilly, and rock ‘n’ roll— delivering an unparalleled experience of beauty, history, and family adventure, infused with music that creates a vacation that is the “Soundtrack of America. Made in Tennessee.” Explore more at tnvacation.com and join other Tennessee travelers by following “TNVacation” on Facebook, Twitter, Pinterest, Instagram and YouTube, and “Tennessee” on Snapchat.
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The Nashville Convention & Visitors Corp and Visit Music City
The mission of the Nashville Convention & Visitors Corp and Visit Music City is to maximize the economic contribution of the convention and tourism industry to the community by developing and marketing Nashville as a premier destination. Visit the NCVC’s website at www.visitmusiccity.com and follow us on social media @VisitMusicCity.
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