Convention's Business Matters

The San Diego Convention Center, ranked among the top five best convention centers in the U.S., had a remarkable impact on its local community last year, generating a record-breaking $1.5 billion in regional economic activity, according to its annual report.

The convention center industry in the U.S. continues to thrive, with travel spending for meetings and events amounting to a staggering $126 billion in 2021, as reported by the U.S. Travel Association.

These convention centers serve as hubs for various events throughout the year, from the Consumer Electronics Show to the Twins Day Festival, the World of Concrete, the International Pizza Expo, and celebrity impersonators conventions, among others. One such event, Phoenix Fan Fusion, hosted in Downtown Phoenix, recently set a new attendance record with 130,145 people in June 2022.

The economic benefits of these events extend beyond the convention center itself. Depending on their size and nature, conventions can require significant resources, such as lodging, transportation, and meals, which can help smaller cities gain recognition and have a substantial economic impact.

However, not all convention centers are profitable ventures. Approximately 175 convention centers across the country operate at a loss, according to a New York Times interview. Some places have struggled to rebound to their pre-pandemic numbers, which can turn profits into costs.

In an effort to attract conventioneers from around the state and nation, many convention centers undergo renovation, expansion, or construction. The Las Vegas Convention Center's legacy campus is currently undergoing a $600 million renovation, while new facilities are being built in places like Bloomington, Indiana, and Seattle's Three Rivers Convention Center is undergoing a $71.3 million expansion.

The Kay Bailey Hutchison Convention Center in Dallas is planned for a $1 billion reconstruction, but the specific funding sources for these expansions are not detailed. It remains to be seen whether these significant investments will pay off for the local areas.

In 2024, the National Football League (NFL) had an average of around 67,000 attendees per game, but in analyzing data from 2019, the convention industry had higher attendance and revenue than both the NFL and Major League Baseball, as found by Exhibit City News.

Despite the potential economic benefits, some people remain skeptical about whether the millions invested in convention center expansions will truly benefit the local area. As these projects continue to shape the landscape of cities across the U.S., it will be interesting to see how they contribute to their communities' growth and prosperity in the years to come.