The forced COVID quarantine of 2020 did not dampen Americans’ desire to travel and sightsee, it simply redirected it to destinations within the country. After years of economic uncertainty, the tourism sector has flourished again, to the point where several states have reached historic levels of visitor numbers.
All those accumulated savings —and stimulus checks!— were burning Americans’ wallets. The moment they were alllowed to travel within the country, off they went! Thanks to the new trend of domestic tourism, states with great cultural and geographical diversity, such as Tennessee, North Carolina, and Virginia, are seeing their economies rebound.
The tourism boom in the USA
Visitors’ direct spending is having a significant impact on the local economy. After all, it is the money that tourists inject directly into the area through hotels, restaurants, entertainment, and transportation. This money generates tax revenues that directly benefit residents. Thanks to this tourism boom, the entire East Coast and these regions have benefited. Not only has Tennessee seen record numbers, but Northern California, Virginia, California, Texas, New York, and even Maine have also profited.
North Carolina alone experienced total spending of $36.7 billion, an increase of 3.1% over 2023. Virginia was close behind with $35.1 billion in tourism spending—a more significant increase of 5.4%. Tennessee, in turn, reached $31.7 billion in 2024, after breaking records in Verified Direct Spending for the third consecutive year. If there is one thing we know, it is that Americans are increasingly inclined to spend their vacations in their own country.
Tennessee, the new tourist hotspot
Tennessee welcomed 147 million visitors in 2024. And that’s great news, since tourism is a powerful tool for social well-being. The $31.7 billion spent by visitors translated into $3.3 billion in state and local taxes. This tax revenue from “non-residents” represented an average savings of $1,170 in annual taxes for each household in Tennessee. In addition, the hospitality and leisure industry grew significantly, supporting 194,820 jobs in 2024.
However, Tennessee’s success was not limited to domestic travelers; the state proved to be a growing global attraction, with a 12% increase in international visitor spending during 2024. It seems that apart from Los Angeles and New York, the state of Tennessee is becoming famous among tourists from outside the United States.
Tennessee’s massive success seems to be based on three very distinct pillars: music, nature, and local culture. Music is the soul of Tennessee and the main economic driver of tourism. After all, Nashville is the music capital of the world, and pilgrimages to legendary venues such as the Grand Ole Opry, the Ryman Auditorium, and the Country Music Hall of Fame attract millions of music fans.
Nashville’s nightlife, with its famous honky-tonk bars offering live music, attracts music lovers from all over the country. On the other hand, its sister city, Memphis, is the birthplace of blues and rock ‘n’ roll. This is where Graceland, Elvis Presley’s iconic mansion, and historic Beale Street (lined with blues clubs) remain must-see stops.
If we feel overwhelmed by so much music, we can get away from the hustle and bustle of the city and breathe some fresh air in the Great Smoky Mountains National Park, the most visited natural park in the United States. Millions of visitors come to enjoy hiking, wildlife viewing, and breathtaking scenic routes… or you can go to Dollywood, Dolly Parton’s theme park.
Wherever you go in Tennessee, you’ll find places full of energy, culture in its musical cities, and beautiful mountains. The state continues to develop its tourism infrastructure, having just spent $17 million in grants and funds to ensure that this growth continues over the years. Tennessee is not this year’s trendy destination, but it is becoming a trend that is set to continue over time.