Convention Centers

To cities the lure of the convention business has long been the prospect of visitors emptying their wallets on meals, lodging, and entertainment, helping to rejuvenate ailing downtowns. However, an examination of the convention business and city and state spending on host venues finds that: the overall convention marketplace is declining in a manner that suggests that a recovery or turnaround is unlikely to yield much increased business for any given community, contrary to repeated industry projections.

Moreover this decline began prior to the disruptions of 9-11 and is exacerbated by advances in communications technology. Currently, overall attendance at the 200 largest tradeshow events languishes at 1993 levels.

Yet in the face of declining convention markets, cities continue to develop new convention facilities as a tool to attract tourism spending. Nationwide, there are 44 new or expanded convention centers in the planning or construction stages. As competition for conventions increase, many cities find their publicly financed convention centers are operating at a loss.

Source: Space Available: The Realities of Convention Centers as Economic Development Strategy, Brookings Institution, January 2005