Red Ink, Silver Lining

A cross the country states are facing their worst budget deficits since World War II, and the resulting scenarios for convention business and the hospitality industry are not pretty. Exhibit A: Dave Whitney's recent resignation from the Dallas CVB following a probe into questionable expenditures at the bureau. (See page 43.)

Meanwhile, the exhibition industry, after decades of fabulous growth, is experiencing business declines that may not disappear when the economy picks up. (Cover story, page 18.) As Doug Ducate, who heads the Center for Exhibition Industry Research, says in his December '02 Situation Analysis, “The exhibition industry will face more competition for marketing dollars in the next five years than it has in the last 25.” He adds that the public spotlight will continue to focus on CVB performance and behavior, in part because few people in the public understand the mission of bureaus.

So what do we do? As one politician in Boston recently said, there's nothing like a fiscal crisis to kick-start reform. Or as the current buzz has it: It's time to change our “business models.”

Our cover story points to a couple of great places to start within the trade show realm: practices like cost-shifting, exclusive contracts, and ridiculously confusing and consequently cost-inflating labor jurisdictions at some convention centers. I sat next to one distraught exhibits manager for a major medical association at last month's PCMA meeting in Anaheim. She waved a bill for utility charges at a major convention venue that was $100,000 over what she had carefully budgeted. “How do I explain this to my boss? This kind of stuff makes me want to lock our show into two or three cities where we can better predict our costs.” Uh-oh.

Regarding public scrutiny of CVB expenditures, what the industry has failed to do is show how visitor expenditures make a real difference to people living in cities. When library doors are closing and public education is eroding, it's tough to ask for a tax subsidy to build a convention center — or tougher yet — a privately owned convention hotel. It's tough to swallow a city bill for a $250,000 convention reception. If public education is what's needed, let's get started. If education isn't the problem, what is?

Is there a silver lining to the red ink? I hope so.

RSS Share

Want to use this article? Click here for options!
© 2012 Penton Media Inc.


Acceptable Use Policy
blog comments powered by Disqus

Search 125,000+ Venues

Search Meeting Space

Find Event Venues with Cvent

The Meeting Planning Blog

Face2Face Latest Posts

Sign Up for Our Free E-Newsletters



Meetings Collaborative

Rate your experience with meeting venues and suppliers.

Facility / Hotel

 
Powered by: Meetings Collaborative
Aega Awards

Latest Webinar

Beyond Marketing: What Else Social Media Can Do for Your Meetings
Thursday, May 24 | 2-3 p.m. EST

Most associations know that online social networks can be handy tools to spread the word about their meetings and events. But social media can do so much more than market. Our social media expert will uncover ways you can leverage social media to discover the educational content your members are craving, engage and energize your community, build relationships, and even simplify your meeting processes. Register Now!

VIEW ALL ARCHIVED WEBINARS

Recent Comments

Powered by Disqus

Back to Top

Explore Our Newsletters


Meeting Planner Survival Guide

Whether you're a novice planner or a veteran, this compilation of must-read articles is your meeting planning resource.

Must-See Meeting Files

Visit the MeetingsNet expert-advice site, where we’ve got top meeting pros on camera answering a variety of your questions as well as a collection of educational—and sometimes offbeat—editors’ pick lists — from the top tech tools to the best books for meeting professionals.

Suppliers/
Facilities/CVBs

MeetingsNet makes it easy to find the CVBs, tourist boards, and facilities you need for your next meeting.

Deal Finder

Special offers brought to you by MeetingsNet.

Find A Job

Targeted to all aspects of the hospitality and special events industry.

SMM PORTAL

Your source for Strategic Meetings Management info and intelligence

Facebook   Twitter   LinkedIn   RSS Feed

Inside Current Issue

April AM

April 2012

December AM

December 2011

October AM

October 2011

August AM

August 2011

April 2011

Browse Back Issues