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Tourism Works for East Tennessee

Published: March 27th, 2008

Next time you see visitors in town, just pat your wallet and smile, knowing that their visit means money in your pocket. Every household in East Tennessee saves an average of $370 each year in taxes because of tourism.

When tourists come to town, they put gas in their cars from our gas stations, put food in their mouths from our restaurants and pack their bags with treasures from our shops, and at the end of the day, they dream sweet dreams about the day's adventures at one of our luxury suites. Each time you see a flash of cash, or a debit card swiped, a tourist has just paid state and local taxes.

"I really believe that tourism is the best hope of economic development in many of our rural areas," said Terry Bobrowski, executive director of the East Tennessee Development District.

In East Tennessee, those tourist expenditures added up to $2.85 billion in 2006. In other words, the tourism industry generates $155 million in state tax revenues and $86 million in local tax revenues.

But the economic impact of a visitor in our town doesn't stop there. Somebody has to be at the gas station, restaurant, gift shop and hotel to serve our traveler with our unparalleled Southern hospitality. Tourism sustains 34,690 jobs and $760 million in resident wages.

On a statewide level the numbers really add up. Department of Tourist Development Commissioner Susan Whitaker announced in her recent state of the industry address,  tourism expenditures in 2006 were $13.4 billion, providing more than $1 billion in sales tax revenue, an increase of 7.6% over the previous year. As one of the state's key economic drivers, the tourism industry created 181,300 jobs for Tennesseans, generating almost $5.1 billion in payroll income.

At the 2007 Governor's Conference on Tourism, Gov. Phil Bredesen said, "Working together, we can truly achieve more for all of Tennessee, from our best kept secrets to those places for which we are already known around the world."

So when the opportunity presents itself, say a hardy "hello" to the next tourist you see, and offer directions to the closest gas station, the most expensive restaurant and all the best shops in town. Don't forget to add, "Ya'll come back now... and stay at one of our log cabins...houseboats...bed and breakfasts...RV parks...resorts...campgrounds..."

Sources: Travel Industry of America, The Economic Impact of Travel on Tennessee Counties 2006; U.S. Census Bureau, The Tennessee Department of Tourist Development, Tourism Institute at the University of Tennessee

Note: Because of the nature of the research, 2006 figures are the most current. The 2007 figures will be released by the Tennessee Department of Tourist Development in the fall of 2008.

For additional quotes, contact:

Tennessee Department of Tourist Development Office: Commissioner Susan Whitaker: 615.741.9001

East Tennessee Development District: Executive Director Terry Bobrowski: 865.273.6003

Middle East Tennessee Tourism Council Chair: Stephanie Wells, Director Anderson County Tourism Council: 865.457.4575

Gatlinburg Department of Tourism: Executive Director David Perella: 865.436.2392

Pigeon Forge Department of Tourism: Executive Director Leon Downey: 865.453.8574

Sevierville Chamber: CEO Brenda McCroskey: 865.453.6411

 Knoxville Tourism and Sports Council: Sr. Manager of Communications Erin Freeman: 865.523.7263

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