Build it and hope they will come

The lure of tourism dollars has convinced several small Texas cities to approve new, city-funded convention centers. Irving, Garland, Allen, and Frisco are in various stages of approval and construction of multi-million dollar facilities that are never expected to net a profit.

The anticipated economic benefit comes not from the conventions themselves, but from the money spent in the community by the attendees. One business tourist spends approximately $1,200 each day on accommodation, meals, and shopping, according to Michael Hughes, director of research service for Tradeshow Week magazine, as quoted in The Wall Street Journal.

With that much money associated with conventions, cities are willing to risk public funds on break-even real-estate projects in order to attract events to their corners of the state.

However, these communities are not trying to compete with larger convention centers in major metropolitan areas, such as Austin, Dallas, and Houston. They are building medium-sized facilities, hoping to pursue regional and statewide events.

For example, while Irving’s approximately 300,000-square-foot facility (illustrated above) will dwarf Frisco’s 75,000-square-foot space, both pale in comparison to the Dallas Convention Center’s proposed expansion to more than 1,000,000 square feet.

While smaller cities remain hopeful that investing in convention space will boost their economies, experts warn that the supply of exhibition space is starting to catch up to demand. Despite these facts, cities in Texas and beyond continue to build exhibition space and hope that the tourism dollars come.

Illustration courtesy of the Irving Convention and Visitors Bureau.

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