Convention Centers: Is the Industry Overbuilt? | Hans Detlefsen and Nina Vetter | HVS Reports
Across the United States and Canada, city officials and economic development decision-makers are wrestling with the question of whether to develop new or expanded convention center assets in their communities. Many existing exhibition facilities are not operating at or near full capacity. Even as demand slowed throughout the first part of this decade, supply continued to expand, resulting in facility utilization rates near historic lows.
As the industry matures, however, the more appropriate question becomes one of competitive advantage. That is, can a new convention center compete? This article argues that the convention center industry is now mature, characterized by aggressive competition. Facilities compete for limited business and only those with the best competitive positions will succeed.