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Tennessee tourism commissioner pitches marketing as generator of visitor tax revenue for Hamilton County
Summary
State Tourism Commissioner Mark Ezell told the Hamilton County Commission that expanded tourism marketing has driven visitor spending and sales-tax revenue that benefit local education and infrastructure, and highlighted Tennessee's recent growth in visitor volume and tax margins.
Tennessee Department of Tourist Development Commissioner Mark Ezell addressed the Hamilton County Commission on March 25 to promote tourism marketing as a tool to bring outside dollars into the state and to Hamilton County.
Ezell, introduced by Hugh Morrow, said the state doubled discretionary tourism marketing funds under Governor Lee and focused on generating "volume and margin" — more visitors and higher taxable spending per visitor. "If a visitor spends a thousand dollars in Tennessee, it's worth $95 in state and local taxes," Ezell said, comparing the state favorably to other non-beach states.
Why it matters: Ezell said sales-tax revenue from leisure and hospitality has grown sharply and that nearly half of new state sales-tax revenue feeds the state education fund. "Those people ... are getting money from non-Tennesseans, and that's what's so exciting," he said.
Ezell provided several statewide figures: Tennessee moved from 17th to 11th in the nation for visitor-volume growth among the top 40 states over five years; visitor-generated income rose from $23 billion to $30 billion; and leisure and hospitality generated roughly $700 million in annual state sales-tax receipts from lodging, eating and drinking, and amusements over the last five years, he said.
He also urged local leaders to view marketing as an investment that draws nonresident spending into local economies, citing hotel growth and a pipeline of tourism projects as evidence of local benefit. "We are the fastest recovering overseas travel state since the pandemic in the nation," Ezell told commissioners, noting new international and direct flights that can benefit Chattanooga.
Commission response: Commissioners applauded the presentation and discussed local tourism assets such as the aquarium, outdoor amenities and planned hotel development. No commission action was taken; the presentation was informational.
Ending: Ezell invited local leaders to continue investing in tourism marketing and said the state considers tourism a return-on-investment activity that reduces pressure on resident-based taxes.
