Tennessee's Tourism Rebound
Tennessee Attracts 439,000 International Tourists in 2025, Outperforming U.S. Recovery Trends
Key Points
Global travel rebound context: The World Economic Forum in 2024 suggested international travel and tourism were on track to eclipse pre-pandemic levels, and some Middle East destinations had already fully regained tourism export levels, while the United States still shows overseas arrivals and inflation-adjusted tourism exports below 2019.
Luxury Link’s analysis uses official BEA and National Travel and Tourism Office data to identify which U.S. cities and states attract the most international tourism.
Iowa welcomed 79,000 international tourists in 2025, illustrating state-level variation in inbound travel that complements national trends.
Kentucky welcomed 86,000 international tourists in 2025, highlighting regional gains in inbound travel beyond coastal gateways.
Tennessee welcomed 439,000 international tourists in 2025, underscoring strong state-level performance in attracting foreign travelers.
Tennessee attracted 439,000 international tourists in 2025, according to an analysis by Luxury Link using federal Department of Commerce and Bureau of Economic Analysis data. The state's 150 million total annual visits produced a record $32.5 billion in direct visitor spending — a 2.7% increase from 2024 and a 40% jump since 2018.
The milestone comes as U.S. inbound international tourism faces serious headwinds. The National Travel and Tourism Office recorded just 68.3 million international arrivals in 2025 — down 5.5% from 2024 and only 86% of pre-pandemic 2019 levels. Tennessee's strong numbers stand out in that difficult national picture.
Tennessee's Tourism Record Masks a National Slowdown
Tennessee's visitors spent an average of $89 million every single day in 2025. That spending generated $3.3 billion in state and local tax revenue. For the average Tennessee household, that translates to $1,180 in annual tax savings. Governor Bill Lee called tourism "a powerful economic driver in all 95 counties that creates greater opportunity for families and communities across the state," the-messenger.com reported.
Yet the national backdrop is sobering. Inflation-adjusted U.S. travel exports tell a different story than the headline numbers. May 2026 travel exports hit $20.9 billion — slightly above May 2019's $20.3 billion. But adjusted for inflation, that 2019 figure equals $26.6 billion today. Real spending by foreign visitors is actually down more than 21% from pre-pandemic levels, according to Luxury Link.
Kentucky and Iowa Show Stark Regional Contrasts
Kentucky welcomed just 86,000 international visitors in 2025 — a 13.9% year-over-year decline. Yet the state still declared a record tourism year, logging $14.6 billion in total economic impact and 81.1 million domestic visitors. Governor Andy Beshear said simply, "Tourism helps fuel our economy. It creates great jobs for our people. It is essential," according to the-messenger.com.
Iowa attracted 79,000 international tourists. The state leaned into domestic travel, with the Iowa Tourism Office targeting "slowcation" and foodie travelers. Iowa's Economic Development Authority awarded $299,800 in FY26 marketing grants across 33 projects. Meanwhile, Indiana drew 175,000 international visitors and Michigan pulled in 281,000, showing wide variation across the Midwest, per Luxury Link.
Visa Costs and Policy Barriers Drag on Foreign Arrivals
High visa fees are a key deterrent. Reciprocal U.S.-China tourist visas ran $140 through late 2025. Long wait times and strict immigration policies compounded the problem. The World Economic Forum dropped the U.S. two spots in its global tourism ranking to number six, surpassed by the United Kingdom and Japan. Analysts pointed to high domestic travel costs and negative perceptions of U.S. travel policy.
Kentucky's Tourism Commissioner Mike Mangeot was direct about the challenge. "In 2025 we faced several tourism challenges, particularly when you look at international inbound travel," he said. "We were forced to make strategic adjustments." The state pivoted hard to domestic visitors to offset the loss, according to the-messenger.com.
States Scramble to Fill the International Spending Gap
Tennessee found creative ways to protect its tourism base. When a federal government shutdown threatened Great Smoky Mountains National Park in fall 2025, a coalition of state, local, nonprofit, and tribal partners funded park operations for 40 days. They kept the park open during peak autumn foliage season — saving critical spending at one of America's most visited destinations.
Luxury Link analysts warn that states pivoting entirely to domestic travelers face real risk. A domestic recession or consumer slowdown could hit states like Kentucky and Iowa hard. Tourism Economics had predicted the 2026 World Cup would reverse the slide in foreign arrivals. Instead, foreign air arrivals through July 2026 fell 3.0% year-over-year — a sign that the U.S. still has ground to make up, according to Luxury Link.
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