CLARKSVILLE, TN (CLARKSVILLE NOW) – Montgomery County took the ninth spot in Tennessee for tourism spending in 2021. Clarksville-Montgomery County visitor spending topped $340 million in 2021, according to economic data released by the Tourism Economics and U.S. Travel Association.
Local spending reflects a 35% increase over 2020 and has climbed back to 97% of the county’s 2019 record-breaking total of $352 million. Adding indirect spending from supporting businesses, total visitor sales equaled $535.1 million.
“Everyone experienced the negative economic effects of decreased travel in 2020. The pandemic showed us how important travel and tourism spending is to our overall economic well-being,” said Visit Clarksville Board of Directors Chairman Kyle Luther.
“Thankfully, 2021 brought a big turnaround and Tennessee outpaced the nation, with all counties seeing increased travel. We live in a beautiful city with a variety of fun and positive experiences for visitors and residents. We are thrilled not only for our strong local rebound, but also that we’re just shy of our 2019 record. Our hotel/motel tax collections so far in 2022 indicate that we’re in for another banner year.”
Tourism and tax relief
Data from the Tourism Economics report showed that direct state and local taxes generated by tourist activity totaled $27.4 million. Because of visitor spending, each household in Montgomery County pays $368 less in state and local taxes than they would to maintain the same tax base without that spending.
“We hope residents realize that tourism dollars are ‘clean’ dollars,” explained Theresa Harrington, Visit Clarksville executive director. “Visitors come to town, spend money at shops, restaurants, attractions, gas stations, hotels or rental properties, then go back home. Local governments don’t have to provide the same level of services that residents require. Tourism is an industry we want to continue to grow so those dollars can support community needs, relieving even more of the tax burden from residents.”
As Harrington noted, the more tourism spending that happens in the community, the less residents have to pay in taxes for the same services. Clarksville Director of Marketing & Media Michelle Dickerson says these funds act as “buffer” for the local taxpayer.
“This money is tax money. Hotel revenue, sales tax, it goes straight into the county general fund and the state gets the sales tax portion. The county sends it to the schools, puts it in their general fund, and the city gets a cut. So, all those things that residents need and expect from their local government are funded in part by tourism dollars. The more tourism funds, the less the residents have to fund to have the same level of services,” Dickerson said.
Growing sports and military markets
Sports and military functions also played a big role in visitor spending.
“We’ve increased to the No. 9 spot because we’ve been working so hard to market and promote Clarksville to leisure travelers in new markets and with new tactics. We’re growing our sports marketing efforts, group tour and military reunions, and small meetings. All of this works together to move the needle. The opening of new hotels, an event center, sports complex, shops and restaurants, and/or a convention center, will all help generate more tax revenue for the community,” Harrington said.
During the 2021-22 fiscal year, Visit Clarksville hosted sports competitions in soccer, fishing, cycling, shooting, football, track & field, baseball and softball that generated $12 million in visitor spending. Group tours, meetings and military reunions added another $1.3 million.
Looking ahead
Harrington expressed excitement about all of the upcoming developments, including the F&M Bank Arena, downtown hotel, and sports complex, as well as new restaurants and shopping destinations.
“The future looks bright. We are ranked 9th now. I’ve been doing this for over 27 years and we were 11th forever and now all of a sudden we’ve gone to 9th. That shows our growth that they’re finally figuring out where Clarksville is and they’ll come and stay with us. ”
2019 was a record year for Montgomery County, with spending at $352.49 million. While 2021 didn’t beat that number, food and beverages still saw an increase over that year.
$119.62 million was spent in 2019 on food and beverages, according to data provided by Visit Clarksville. In 2021, visitors spent $121.05 million, topping the 2019 figure.
Officials are working to increase these numbers further as industries continue to move forward and out of the pandemic.
Other report highlights:
- Average visitor spending in the county in 2021 totaled $940,000 per day.
- Accommodations spending totaled $65.59 million
- Retail spending totaled $36.8 million
- Recreation spending totaled $47.64 million
- Transportation spending totaled $77.65 million
- Direct labor income, or payroll, totaled $90.5 million, with 3,386 persons directly employed in tourism sectors.