Trade Show Executive's 2009 The World's Top Convention Centers

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Trade Show Executive 2009 Directory of the World’s Top Convention Centers Convention Centers 2009 A State of the Industry Report by DARLENE GUDEA, VP/publisher & editor, RENEE DIIULIO, senior editor, news & directories and NICOLE BURNES, assistant editor It seems it was just a short while ago that the convention and exhibition industry was enjoying its post-9/11 resurgence. But faced with the worst economic downturn since the Great Depression, that resurrection was truncated too soon. With their fortunes tied to the industries they serve, events of all types have suffered in varying degrees. Many have seen losses in attendance, exhibitors and net square footage, not just due to the economy but also to such challenges as the H1N1 virus (swine flu) and public perception of events. The political uproar over meetings and events has resulted in cancellations that are being felt particularly hard in some of the most “appealing” destinations, such as Las Vegas and Hawaii. Most businesses are re-evaluating, some are renegotiating and all are tightening their belts. Show organizers are in a position of power, but they should also be prepared to give something in return. Convention centers are much more willing to negotiate – even renegotiate – with clients and potential clients who can offer repeat business. Service and value, however, remain unchanged. Show organizers still hold high standards, and convention centers still aim to deliver. “Show organizers are looking for the same responsiveness in terms of event coordination, but they may have an overall keener focus on value and what we’re delivering for the price,” said Steve Ethier, executive director of the Minneapolis Convention Center. Subsequently, convention centers continue to operate in a highly competitive environment and must still invest in marketing and improvement efforts, including greening, while seeing their budgets shrink. “Few buildings are very happy with the business they have,” said Richard Geyer, president and CEO of the Wisconsin Center District, which owns and operates Midwest Airlines Center in Milwaukee, WI. at the drawing board Falling revenues pose a serious challenge, and centers are looking to costcutting measures as well as ancillary and non-traditional sources of income to make up the difference. Sponsorships, advertising, short-term business and repeat business represent many centers’ approaches. Flexibility is key, for both centers and organizers. “We look for ways together that we can reduce their expenses and partner with them,” said Mark Zimmerman, general manager of Atlanta’s Georgia World Congress Center (GWCC). Many centers approach their negotiations with show organizers as partnerships. The current economic situation has driven some show organizers to seek renegotiation of contracts, and centers have been willing to talk. Ethier suggests organizers are driven to return to the table, an unusual move in the industry, by the drop in show figures, impacting attendance, exhibit space and demand for exhibitor services. “We face the same economic challenges that show organizers are facing. Hopefully, they understand we can be flexible to a point, and then we like to see some sort of commitment on their end to providing additional business in the future,” said Ethier. competition still tight To make sure there is a future, convention centers are willing to work with show organizers to create a package that will work. Many are reaching out directly to shows’ clients to help. The GWCC has designed fam (familiarization) trips for both the relevant media and exhibitor groups for client shows. Those invited are hosted by the center, permitting them to experience the city and center directly. “We show them and tell them all the things that are going on in Atlanta and the convention center, and we try to build interest in those particular industries,” said Zimmerman. Of course, a city must have something to show off when hosting a fam trip or when making presentations to organizers, and so destination-building remains important. “If a city or a market is going to invest in having a convention center, then they will need to continue to progress in terms of making that destination more attractive. There are many ways a city can undertake that effort,” said Ethier. Minneapolis is currently embarking on a new branding initiative that will be supported by market research. The center is examining the current market to determine which actions are a temporary reaction to the economy and which will become permanent trends. “What does the future hold? How should we respond? Our goal is to identify our competitive edge,” said Ethier. Budget constraints can create some limitations on any center’s efforts to improve, but today’s municipalities need to show capabilities or progress in areas of mass transportation, technology and development. “If municipalities aren’t investing in making their downtowns and cities more vibrant, then clearly they will not be in the game going forward,” said Ethier. 1) McCormick Place, Chicago 2,600,000 sf 2) Orange County Convention Center, Orlando 2,100,000 sf 3) Las Vegas Convention Center, Las Vegas 1,984,755 sf 4) Georgia World Congress Center, Atlanta 1,400,000 sf 5) Kentucky Exposition Center, Louisville 1,100,000 sf 6) New Orleans Morial Convention Center, New Orleans 1,100,000 sf 7) Reliant Park, Houston 1,056,213 sf 8) International (I-X) Center, Cleveland 1,050,000 sf 9) Sands Expo & Convention Center/ The Venetian Resort Hotel Casino, Las Vegas 1,040,600 sf 10) Dallas Convention Center, Dallas 1,018,942 sf Prime Exhibit Space at Top Ten U.S. Facilities Continued on page 14 Snapshot: The Nation’s Top Ten Convention Centers Listed by Square Feet of Prime Exhibit Space June 2009 14,450,510 sf Percent of Total SF of Prime Exhibit Space at All U.S. Facilities 25.1% 10 Trade Show Executive Directory of the World’s Top Convention Centers www.TradeShowExecutive.com
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