Economic Impact Report

The U. S. Travel Data Center prepares reports for the Tennessee Department of Tourist Development, which cover the entire state and every county in the state. The latest figures for Tennessee reflect the 1997 data and were released in September of 1999. The 1998 figures should be available in September of 2000. These figures measure the impact of travel expenditures on employment, payroll, business receipts and tax revenue made by U. S. travelers (domestic travelers) on trips where travelers spent the night. These figures do not include international travelers or those travelers passing through Tennessee or who made day trips within the state of Tennessee, but did not spend the night away from home. The limitations of these figures are evident as we know there are many international travelers in the state, and many tourists from Tennessee who make day trips within the state and spend money. So, it is important to know that though the figures presented here, document a large segment of the economy of many counties, the true impact is even greater due to the limitations of the data. The spending of domestic travelers comprised over 96% of the total state travel expenditure for 1997. Total travel expenditures were up 6% from 1996, reaching more than $9 billion including domestic and international travelers. Spending on foodservice was the largest expenditure category, followed by lodging, auto transportation, public transportation, general retail trade and entertainment and recreation. (Source: The Economic Impact of Travel on Tennessee Counties in 1997, U. S. Travel Data Center.)

Direct Travel Expenditures in Tennessee by Industry Sector, 1996 - 1997

The travel generated tax revenue was greatest for the federal government in 1997, generating over $1 billion or 58.9% of all travel generated tax collections in the state. The state tax revenue collected from travel was over $488 million, through sales and excise taxes and taxes on personal and corporate income. Local governments benefited as well, with over $232 million in sales and property tax revenue. (Source: The Economic Impact of Travel on Tennessee Counties in 1997, U. S. Travel Data Center.)

Domestic Travel on Tennessee Counties

During 1997 the domestic traveler spent over $86 billion while traveling in Tennessee, up 5.9 percent over 1996. These expenditures directly generated over $3.3 billion in wages and salaries and 161,000 jobs for Tennessee residents. Tennessee ranked 15th in domestic travel out of 50 states and the District of Columbia in 1997 and 24th in international travel spending. Tennessee was 4th out of ten southern states in domestic travel spending.

Nashville Davidson County led all Tennessee counties in travel expenditures, payroll income and jobs directly generated by visitors' spending in 1997. The 2.5 billion in expenditures in Nashville account for nearly 30% of the total for the entire state. These expenditures generated nearly $1.1 billion in payroll revenue and nearly 53 thousand jobs. Nashville Davidson County not only led the entire state but also this region in travel expenditures. Our region is referred to by the U. S. Travel Data Center as the Mid-Cumberland Region. This is the same area that is covered by the Middle Tennessee Tourism Council and the Greater Nashville Regional Council. (Source: The Economic Impact of Travel on Tennessee Counties in 1997, U. S. Travel Data Center.)

For a complete copy of this report contact the Middle Tennessee Tourism Council or the Tennessee Department of Tourist Development.