Tourism director asks for marketing and targeted grants; $165M welcome‑center proposal draws questions
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Summary
Tennessee’s tourism commissioner told the House Finance committee that tourism drives roughly $31 billion in visitor spending and requested $13.5 million for marketing plus $7.5 million for targeted grants; legislators asked about use of funds, welcome‑center security and ARPA event‑marketing carryforward.
Tennessee Department of Tourist Development Commissioner Mark Ezell told the House Finance committee on Feb. 12 that the department’s FY27 request includes $13.5 million for marketing and $7.5 million for targeted grants to help counties and regional offices promote visitation.
Ezell said tourism now generates about $31 billion in visitor spending and contributes roughly $2 billion in sales and use tax. He highlighted recent milestones including expanded international air service, new Michelin Guide recognition for Tennessee culinary destinations and signature marketing programs. The department said it reached roughly 130 million people in outreach and continues to push rural visitation through targeted grants and county‑level investment.
Members focused questions on a $165 million nonrecurring appropriation in the governor’s package for welcome‑center renovations and replacement. Ezell said the department has worked with TDOT and the Department of General Services on planning and that centers more than 60 years old will be prioritized; the department said it would also examine design, technology and security during renovation planning.
Committee members pressed grant administration and performance tracking for prior special event marketing funds; Ezell said major allocations have supported events such as the MLB Classic and bluegrass initiatives and that many projects have been or will be committed to events in 2028–2030. Staff said marketing grant awards are administered by outreach staff that prioritize rural counties for some grant lines and that every county would receive a floor allocation under the proposed $7.5 million targeting grant plan.
The department told legislators that marketing grants are not used for administrative salaries and described plans to distribute grants through local partners and existing outreach teams.
Ezell framed tourism spending as a revenue engine for education funding and statewide jobs, and he asked the committee to support the marketing and grant requests that are intended to boost visitor flows and local economic impact.
