Despite a significant decline in attendance and corporate spending on events, cities across the United States are continuing to invest heavily in convention centers. This trend raises questions about the economic viability of such investments, especially as companies increasingly cut travel costs and opt for remote gatherings. According to a recent analysis, the economic activity generated from conferences dropped from $139 billion in 2019 to $119 billion in 2023, highlighting a concerning trend for the event industry [40488601].
Cities like Dallas, Los Angeles, and New York are undertaking major renovations of their convention centers, with expenditures reaching $3.7 billion, $1.4 billion, and $1.5 billion respectively. These renovations are often justified by the promise of future economic benefits, yet many convention centers operate at a loss. For instance, the Connecticut Convention Center reported an annual loss of $2 million during the 2022-2023 period [40488601].
The decline in attendance is starkly illustrated by the Consumer Electronics Show (CES) in Las Vegas, where attendance fell from 182,000 in 2018 to just 139,000 in 2024. This trend reflects a broader shift in corporate behavior, as businesses reassess the necessity of in-person events in an era where remote work and virtual meetings have become the norm [40488601].
While the investment in convention centers may mask underlying financial losses and exaggerate potential benefits, cities continue to pour resources into these facilities, hoping to attract future events and boost local economies. However, with the changing landscape of business travel and corporate gatherings, the long-term sustainability of such investments remains uncertain [40488601].