“A strong economy creates a fruitful meetings industry climate,” says Walt Baker, CEO of the Tennessee Hotel and Lodging Association. And at the five year anniversary of 9/11, the economy is regaining strength, the hotel and convention business is steady, and the buyer’s market that ensued after the attacks is turning around. Once upon a time, convention planners, business travelers or leisure travelers could book hotel rooms for bargain rates in big-business cities such as Chicago or Washington, D.C. Today’s market isn’t so soft, and for the smaller markets of Tennessee, this is nothing but positive. With affordable pricing in the major hubs scarce at best, people are looking at more affordable cities like Nashville, Memphis, Chattanooga or Knoxville to book their conventions or plan leisurely vacations.

Steve Genovesi, vice president of sales at the Chattanooga Area Convention and Visitors Bureau, says affordability and convenience are two major components that drive people and conventions to smaller markets. “Given that Chattanooga is an affordable market and we roll out the red carpet for groups that traditionally book conferences in larger cities, we are now starting to see more corporate accounts,” Genovesi says.

For that reason, Chattanooga is one Tennessee market garnering extra attention. A recent article in USA Today named it one of six locations benefiting from the expensive hotel rates in bigger cities. According to Scott Spann, general manager of the Chattanoogan, “the leisure market is down because of the opening of the Georgia Aquarium, but we are seeing stronger business and group meetings travel.”

After the 2003 renovation of the Chattanooga convention center, business has been steadily increasing. In the 2005 fiscal year, the center hosted 45 conventions, while in the 2006 fiscal year ending in June, the number grew 11% to a total of 50 conventions. That kind of growth explains why those in the hotel business, like Spann and Tom Pugh, president of the Chattanooga JW Marriott and Convention Center, say 2006 has been an excellent year.

In Memphis, also one of the six cities USA Today marked as profiting from the high rates in larger cities, the Peabody’s Douglas Browne says about 60% of his business this year has come from groups—convention-goers and in-house groups alike. That’s up 10% from last year. “2006 has been the biggest convention year thus far, and we will probably hit about 70,000 group room nights here at the Peabody,” Browne says.

One thing Memphis can boast is the newly renovated and expanded Cook Convention Center, which is surrounded by nearly 3,000 hotel rooms within walking distance. According to Pierre Landaiche, general manager of the center, the $100 million dollar expansion that was completed in 2003 is finally paying off. “Compared to 2005 when we hosted 22 conventions, this year we will host 30,” he says. Besides convenience, Landaiche says planners are drawn to Memphis because of the warm hospitality. “From the ticket agents at the airport to the cab drivers and the staff at the convention center, we are all on the same page thanking people for choosing our city. That’s just what we do here in Memphis, and it’s why we are successful.” Browne also credits the central location of Memphis and the airport as being major draws. “Having Northwest’s hub here makes travel more convenient,” he says.

Likewise, Nashville’s International Airport entices travelers and convention planners, says Anetha Grant, senior vice president of sales at the Nashville Convention and Visitors Bureau. “Having Southwest in Nashville and Jet Blue coming in is a huge selling tool for us,” she says. And with Nashville driving the high hotel revenue and occupancy rates for the state—occupancy up 3.5% and revenue up 10.8% for the state, with Nashville occupancy up 7.2% and revenue up 6.2%—location and a pleasant airport experience seem to matter to travelers and convention-goers.

On par with ease of travel or location, Nashville’s national cultural attractions and Music City brand help attract meeting planners and leisure travelers alike. “We have so much to offer in terms of outside amenities,” says Melanie Fly, director of sales and marketing at the Hilton Downtown Nashville and Union Station. “We have the music scene, the Country Music Hall of Fame, professional hockey and football teams, the new Schermerhorn Symphony Center opening in September, and the Frist Center for Visual Arts all right here in the city.”

The robust selection of downtown cultural venues is offset by what some see as an obsolete downtown convention center. Built in the 1980s, the center doesn’t compare to the newer, more modern facilities that Chattanooga, Knoxville, and Memphis have to offer. “There is no question that Nashville is losing larger national conventions to other cities both in and out of Tennessee,” says Charles Starks, executive director of the Nashville Convention Center. “We have a number of meeting planners that want to sign contracts with us if we get a new facility. So it’s not the old ‘build it and they will come’ saying. They want to come. We just have to provide the space and modern amenities,” he says. It’s too early to tell whether or not the city council will agree to a new convention site, as the winner of the debate between those for and against a new convention center remains undetermined.

Nonetheless, Starks claims the 2006 fiscal year ending in June closed well for the center. “We ran about 70% occupancy, which is dramatically ahead of convention center numbers. In industry terms, that’s deemed ‘functionally full.’ That says a lot about Nashville.” Similarly, Knoxville’s Susan Eaton, assistant general manager of the Knoxville Convention Center says 2006 was level with 2005, but predicts that 2007 will be better in terms of the number of conventions booked. “Different selling and marketing practices, as well as hotel and guest services all contribute greatly to the rise in the future numbers.” Also, she says Knoxville has an extremely attractive and functional building, a high-quality in-house catering business, and wonderful service that attracts meeting planners. Scott Bullock, general manager of the Hilton Knoxville, attributes Knoxville’s success to affordable pricing and local attractions. “Pricing here is reasonable compared to other cities outside of Tennessee, and we have a downtown area very near the convention center called Market Square that provides live music and entertainment.” But most importantly, Bullock says, “we are easy to deal with, and we like to make things easy on convention-goers when they are here.”

From one corner of Tennessee to the other, meetings and convention business has continued to grow since the Sept. 11, 2001, terrorist attack. This year is proving to be an excellent year for those in the industry, who, like Baker and Eaton, are forecasting 2007 to be even better. Plus, in addition to the expanding convention industry across Tennessee, Baker is quick to acknowledge the increase in leisure travel. “People are finally adjusting to the higher gas prices,” he says. And Tennessee is reaping in the profits.