For the first time in its 108-year history, the National Fire Protection Association is headed to Las Vegas for its annual meeting next year. Why? Because it can. Thanks to the proliferation of new and expanded convention and exhibit space around the country, groups like the National Fire Protection Association, which draws about 7,000 members to its annual meeting, are finding even the largest, most popular convention cities are eager for their business and willing to make concessions to get it.

“We're going to stick with first-tier cities,” asserts Albert Sears, vice president, meeting services for the Quincy, Mass., association. “These destinations are more of a draw for our members, have a broader range of hotels and activities, and are offering very competitive prices,” he says. “They're all willing to work with you on whatever you need to get it done.”

Indeed, to stay competitive, many cities — large and small — are offering a wide-range of incentives to entice groups to come to their destination. “When we slip into these buyers' markets, cities can become quite creative,” notes Doug Ducate, president and CEO at the Center for Exhibition Industry Research, based in Chicago. “Each destination has different things to offer,” he says, “so it's a matter of how do they optimize the benefits or the features that exist within their cities.”

Just how much has the supply of convention and exhibit space grown? Over the next five years or so, 6.8 million square feet of exhibit space and 2.3 million square feet of new meeting space will be built, according to Tradeshow Week data. That translates into the construction of approximately 20 new centers, including nine in 2005, and about 40 expansion or renovations projects. (See charts, left, for details).

The anticipated growth is more in line with historical averages, says Michael Hughes director of research services at Tradeshow Week magazine, Los Angeles. But this growth pales in comparison to the boom of the last five years. From 2000 through 2004, exhibit space grew by 15 million square feet, or 22 percent, to 80.5 million.

“This is excellent news for meeting planners,” Hughes says, “because the more space there is, the more competition there is between cities and venues, and therefore the better deals that event planners, especially large association show producers, can get.”

More Supply But Less Demand

The development of the last few years has taken place during a lull for the U.S. economy as well as the exhibition industry. “It's supply and demand. There's a lot of supply and it's growing faster than demand,” Hughes explains, as the net square footage at trade shows in North America has steadily declined over the last few years and exhibit space has grown rapidly.

CEIR's recently released Exhibition Industry Index supports that point. From 2002 to 2003, exhibition space increased 6.5 percent, but attendance at trade shows declined 0.5 percent and revenues decreased 3 percent. Since 2000, revenues are down 6 percent.

While the convention center market may be overbuilt right now, boosting exhibit space is necessary for future growth, according to CEIR's Ducate. “There wasn't enough square footage to handle the exhibition industry boom that ran from 1986 to 2000.” Space is just now catching up to handle that type of demand, and demand is likely to pick up as the exhibition industry enters a new cycle of growth, he says.

“We are beginning to see a significant “verticalization” within a number of industries that are going to foster new events,” says Ducate. He notes that in industries like technology, the big national shows, which have largely proven unsuccessful, will give way to the smaller, more focused events. These events will center on different jobs and and areas of expertise within the technology field. The cycle is very similar to what the healthcare industry — which has the most shows of any industry — went through, he says.

Buyer's Market

While it appears to be a buyer's market across the board, Tradeshow Week's Hughes believes the most competitive area may be the first-tier market. “What we've seen with this added exhibit space is that, especially the biggest venues, are now digging deeper to find smaller shows and more unique events,” Hughes says. “The bigger venues are not just focused on the [largest events] anymore, they're looking at some of the smaller regional events.”

Moreover, with recent expansions, many second-tier cities now have the capacity to compete for the big shows. But venue capacity is not the only issue, adds Hughes. Hotel room capacity is now the No. 1 driver of site selection for meeting planners, he says. “If you ask almost any CVB head or venue manager, they would probably say, ‘Sure, we'd love to have another 500- to 1,000-room hotel as close to the venue as possible.” Los Angeles, San Antonio, Pittsburgh, and Columbus, Ohio, are just some of the cities that are looking to build new hotels.

Ducate contends that competition will be stiff throughout the industry, regardless of tiers. “I'm not really sure the old model of first-, second-, and third-tier cities really stands up,” he says. “You can basically draw a line under Las Vegas and then look at Chicago and Orlando and draw another line. Beyond that it's fair competition.”

The American Academy of Dermatology, Schaumburg, Ill., typically seeks out only the largest facilities because of its 16,000 attendees, says Timothy Moses, director, meetings and conventions. But in recent years, the options are greater because more cities have upgraded and expanded their centers. “There is a much broader selection from which to choose,” says Moses. “We now have cities in our rotation that we could not have before.”

Deals Abound

About 25 percent of show producers have been offered free exhibit space by at least one venue over the last two years, according to Hughes, citing a Tradeshow Week survey.

The Hawai‘i Convention Center is offering free exhibit space to Professional Convention Management Association members who attend the 2005 PCMA conference and book an event at the center between 2005 and 2010. “Competition in itself is not a bad thing,” says Randy Tanaka, director of sales and marketing at the Hawai‘i Convention Center. “It helps all of us provide the best service for our clients.”

The Northern Kentucky CVB created a “Guaranteed Meeting Program” that offers one free day's rental of the Northern Kentucky Convention Center if the planner is not satisfied with the event. New centers being built in Virginia Beach and Puerto Rico have also offered deals. Through the end of the year, Virginia Beach is giving 25 percent to 75 percent off food and beverage and hotel room rates depending on money spent on each, explains Al Hutchinson, director of convention sales. In Puerto Rico, groups that booked by the end of October got a free reception or historic tour.

In Monterey, Calif., the CVB, conference center, and local hotels have created the Monterey Meeting Connection, which provides free meeting room rentals for groups that book 500 or more rooms within the block, explains Dan Concepcion, general manager.

Many cities are launching innovative marketing programs. “The meeting and convention pie is shrinking so we need to increase our ability to market to get a piece of that shrinking pie,” says Betsy Keck, communications manager, meetings and conventions, at the CVB of Greater Cleveland. “Getting a new convention center is always a top priority of ours and we're still working toward doing that,” she says. “In the meantime we need to come up with guerrilla marketing to keep Cleveland at the top of the list for people to consider.”

In the past year, Cleveland has introduced two marketing initiatives. “Rock Your Bottom Line” gives groups that book a meeting in Cleveland in 2004 or 2005 a 10 percent discount off their total room revenue and free tickets to the Rock and Roll Hall of Fame for attendees. So far, the program has led to 18 bookings. The CVB also launched Team Cleveland, a marketing effort done in conjunction with the mayor's office in which 1,700 letters were sent to local executives asking them to help bring meetings to town.

“Cities sell either benefits or features. If you don't have any features, you better have some really good benefits,” notes CEIR's Ducate. If a city isn't blessed with features like San Francisco Bay or the French Quarter, it better have benefits like magnificent airports, a lot of hotel rooms close to the center, a great convention center, and reasonable prices, he says. “The cities that have both tend to be the leaders.”

Outside the Box

A 22-acre slanted roof, a 14-story glass facade, and a 150-foot glass tower are just some of the unique design features of the current crop of new convention centers. The gray, windowless boxes of the past are rapidly giving way to innovative and eye-catching venues.

“Historically, convention centers and cities have done what's politically possible, not necessarily what the market demands,” says Doug Ducate, president and CEO of the Center for Exhibition Industry Research in Chicago. These days, a visually striking and modern facility is a marketing tool in its own right.

In Puerto Rico, officials see the new center's architecture as a selling point. “This is really going to become a jewel in the Caribbean, if not in Latin America, because the architectural design of the center is majestic,” says Ana Maria Viscasillas, president and CEO of the Puerto Rico Convention Bureau. The facility, which opens next year, features a massive glass facade that offers views of San Juan Bay from three levels. Inside, designers tried to reflect the colors and ambience of the island, she adds.

The architecture of the Virginia Beach Convention Center, scheduled to open next June, is also inspired by the surroundings. “It will have a nautical theme,” explains Al Hutchinson, director of convention sales, using elements that mimic ocean waves and sails. “It will almost appear [as if] the building is floating on water,” he says. Also, a 150-foot glass tower stands in front of the edifice with four levels, including an observation deck that overlooks the Atlantic Ocean.

In New England, two new venues stand out aesthetically. One is under construction — the Connecticut Convention Center in Hartford — and the other, the Boston Convention and Exhibition Center, opened this past summer. The Connecticut venue is part of a 30-acre riverfront development called Adriaen's Landing, which also includes hotel, retail, and residential buildings. The center's bold look incorporates a 468-foot grand concourse, a tree-lined esplanade along the Connecticut River, and a 115-foot-tall atrium enclosed by a vaulted roof and 10-story glass facade. The Boston Convention and Exhibition Center features a 22-acre overhanging roof, claimed to be the largest roof in the country.
— Dave Kovaleski

New Centers on the Horizon

Facility/Location	Exhibit Space*	Meeting Space*	Opening	Special Feature
Connecticut CC, Hartford, Conn. www.enjoyhartford.com	140,000	25,000	summer 2005	Part of Adriaen's Landing project
Hampton Roads CC, Hampton, Va. www.hamptoncvb.com	108,000	30,000	spring 2005	2,500-room Embassy Suites opens next year
MassMutual Center, Springfield, Mass. www.massmutualcenter.com	40,000	9,000	late 2005	Includes 6,677- seat arena
Puerto Rico CC, San Juan, P.R. www.prconvention.com	159,000	80,000	late 2005	Largest center in the Caribbean
St. Charles CC, St. Charles, Mo. historicstcharles.com	35,700	7,100	April 2005	High-tech facility has colonial feel
Virginia Beach CC, Virginia Beach, Va. www.vbmeetings.com	150,012	28,929	June 2005	6 blocks from the ocean
Wynn Las Vegas Resort, Las Vegas, Nev. www.wynnlasvegas.com	75,000	200,000	April 2005	2,700 guest rooms, 2 golf courses
Broadmoor Hall, Colorado Springs, Colo. www.broadmoor.com	60,000	60,000	Oct. 2005	Part of larger resort complex
Rosen Shingle Creek Resort and Golf Club Orlando, Fla. / www.shinglecreekresort.com	195,000	55,000	Sept. 2006	Includes 1,500 hotel rooms
Bayfront CC, Erie, Pa. www.bayfrontconventioncenter.com	30,000	14,500	July 2007	200-room hotel to be connected
Branson Regional CC, Branson, Mo. www.cityofbranson.org	60,000	35,000	fall 2007	Part of larger development
New Raleigh CC, Raleigh, N.C. www.raleighconvention.com	150,000	30,000	fall 2007	Funding approved in January 2004

10 Expansions Under Construction

Facility/Location	Post Expansion: Exhibit Space*	Meeting Space*	Completion	Expansion Details
Cinergy CC, Cincinnati, Ohio www.cincyusa.com	200,000	100,000	mid-2006	Center will more than double in size to 750,000 total sq. ft.
Colorado CC, Denver, Colo. www.denverconvention.com	584,000	100,000	Dec. 2004	Exhibit space will double
DeVos Place, Grand Rapids, Mich. www.visitgrandrapids.org	162,000	35,000	Jan. 2005	40,000-sq.-ft. ballroom added
Disney's Coronado Springs Resort Lake Buena Vista, Fla. disneymeetings.disney.go.com	86,000	95,000	April 2005	86,000-sq.-ft. exhibit hall added
McCormick Place West, Chicago, Ill. www.mccormick2008.com	470,000	250,000	late 2007	This add-on will be contiguous to the McCormick complex
Novi Expo Center, Novi, Mich. www.noviexpo.com	214,000	40,000	summer 2005	Adding 30,000 sq. ft. of mtg space
Ocean Center, Daytona Beach, Fla. www.oceancenter.com	160,000	40,000	early 2007	Facility will triple in size
Phoenix Civic Plaza, Phoenix, Ariz. www.phx2006.com	600,000	200,000	early 2006	500,000 sq. ft. of meeting/exhibit space to be added
Salt Palace CC Salt Lake City, Utah	515,000	125,000	Aug. 2006	217,000 sq. ft. of meeting/exhibit space to be added
Spokane CC, Spokane, Wash. www.spokanecenter.com	100,000	58,000	July 2007	Adding new exhibit hall

*All exhibit and meeting space measurements are given in square feet.