A small number of rural counties in Tennessee rely heavily on resource extraction as a primary driver of economic development. Although this industry has historically created employment opportunities, limited economic diversification has left many of these counties vulnerable to the boom-and-bust cycles characteristic of mineral and energy markets. In northeastern Tennessee, counties with a long history of coal mining face increasing uncertainty as coal markets continue to evolve across Appalachia. Rising extraction costs have made Appalachian coal less competitive, while international trade policies have further constrained export opportunities. At the same time, increases in natural gas prices have provided some indications of a potential rebound in coal demand, creating an uncertain outlook for the region’s coal-producing communities. This uncertainty complicates efforts to evaluate alternative economic development strategies.
Many of these same counties possess significant natural and cultural resources that could support expanding tourism industries. Across Tennessee, tourism has become an important source of employment and local tax revenue, with successful examples ranging from metropolitan areas such as Memphis to destinations like Sevier County. The form and success of tourism development vary depending on the availability of natural attractions and recreational or cultural amenities that appeal to visitors. This report examines the current status and future prospects of coal production and tourism development in Campbell and Claiborne counties. It begins with an overview of the counties’ key characteristics, followed by separate analyses of the coal and tourism sectors. For each sector, the report evaluates its strengths and weaknesses as an economic development strategy and estimates its economic and fiscal impacts. The analysis of the coal industry was conducted specifically for this study, while the tourism assessment draws on existing state-sponsored research. The report concludes with a summary of the findings and their implications for future economic development in these rural counties.