
January 18, 2002 |
2002-R-0056 | |
CONVENTION CENTER MARKET TRENDS AND THE NEW CONNECTICUT CONVENTION CENTER | ||
By: John Moran, Research Analyst | ||
You asked several questions regarding the proposed Connecticut Convention Center at Adriaen's Landing including: (1) has convention attendance in the U. S. leveled off while available convention space continues to grow, (2) what are the recent convention attendance statistics for the New York City to Boston corridor, (3) how will the Connecticut Convention Center compete amid the increased convention space in the New York to Boston corridor?
Following, separately, are the answers.
Has convention attendance leveled off while available convention space continues to grow?
In New England and across the nation, convention space continues to grow as new or expanded centers are either planned or under construction. In New England, new or expanded centers are being built in Hartford, Springfield, Boston, and at the Mohegan Sun Casino in Montville (see OLR report 2001-R-0798). Nationally, exhibition space has increased by 6. 9% in the last six years and is expected to jump another 25% over the next four years, according to Tradeshow Week magazine. (Exhibition space is a key component of convention centers as it can determine the size convention a facility can accommodate. )
In the Hartford area, convention attendance has increased in three of the last four years with FY 2000-01's151,260 attendance figure 14% more than FY 1999-00 (see Table 1 for five-year attendance figures). Nationally, convention attendance may drop for calendar year 2001 although we could not find definite figures. Mary Power, president of the Convention Industry Council (CIC), said attendance may be down due in part to the September 11 terrorist attacks, but no national figures are available. Power said CIC has put a major convention industry research project on hold because of concerns that post-September 11 figures will skew the data. The International Association of Convention and Visitors Bureaus and the International Association of Assembly Managers do not track convention attendance figures.

Hartford area defined as encompassing a 30-mile radius around the city. Convention defined as any meeting requiring 50 or more hotel rooms for at least an overnight stay.
Source: Greater Hartford Convention and Visitors Bureau (GHCVB)
But there are reports of decreased attendance at conventions and trade shows immediately after September 11. For example Tradeshow Week reported the third quarter of 2001 showed the largest drop in attendance (-7. 5%) and exhibitors (-4. 2%) in the publication's 29-year history of quarterly reports. Tradeshow Week has not yet published fourth quarter data.
There are some signs conventions and trade shows are rebounding. The Center for Exhibition Industry Research surveyed 11 randomly selected events held in major cities from October 3 to October 17 and more than a third reported they met or exceeded their attendance projections. Of the 64% that missed their projections most fell below the mark by between 8% and 15%. A survey by Meeting Professionals International showed that nearly 70% of the respondents that cancelled meetings scheduled during October, November, or December 2001 said they would reschedule the event at the same venue.
What are the recent convention attendance statistics for the New York City to Boston corridor?
We could find no figures for the New York City to Boston corridor or for New England. Several industry representatives, including Scott Dresser, sales vice president for GHCVB, said they were not aware of any organization tracking northeast or New England regional attendance figures.
What are the projections for competition for convention business in the New York to Boston corridor and how will the new Connecticut Convention Center compete amid all the additional space?
We could find no national or regional projections for the amount of convention business anticipated for the increased space expected to come on line in the next several years. But the Capital City Economic Development Authority (CCEDA), the state-created authority in charge of the Connecticut Convention Center development, noted the Adriaen's Landing Master Plan indicated there is a demand for the convention center. CCEDA also pointed to recent pre-September 11 convention trends that showed smaller market cities were becoming more popular for conventions because they are less costly than major markets such as New York City or Boston (see Attachment 1). CCEDA and GHCVB officials note that Hartford' s proximity to New York and Boston puts it within a two-hour drive of 23 million people.
CCEDA is working with the Waterford Management Group (the major private developer for Adriaen's Landing and the Marriott hotel that will be adjacent to the convention center) and the GHCVB to develop an "aggressive pre-opening marketing campaign and a comprehensive strategic plan, complete with benchmarks and performance measurements" for the center, according to Timothy Shea, CCEDA project coordinator. When CCEDA's pre-opening plan is complete in a few weeks, Shea said he could discuss it.
Meanwhile GHCVB is already marketing the new convention center although it will not open until late 2004 or early 2005. Dresser said GHCVB already has over 50 "tentative bookings" for the new facility for 2005 to 2008. These bookings are not signed contracts, but Dresser said GHCVB has made a pitch and received strong interest from these groups about the new center. He said it is common in the industry for contracts to be signed as much as a year before a new facility opens, and GHCVB is aiming to do that as the project progresses.
GHCVB is taking a number of other marketing steps including plans to (1) promote the new Hartford facility at upcoming convention and exhibition industry meetings and tradeshows, (2) develop "familiarization tours" (as they are known in the industry) so meeting planners can visit Hartford and tour the facilities during development, and (3) develop new marketing materials that showcase the new convention center. Other steps by the GHCVB are included in a brochure it produced specifically about marketing the new center (see Attachment 2).
JM: ro