Leaders in Tennessee’s conventions industry told BusinessTN last year that they have seen steady positive growth in the tourism economy since the detrimental effects of the 9/11 terrorist attacks. Almost all of Tennessee’s major cities predicted an even better year in 2007. So have their hopes come to fruition so far?

Steve Genovesi, vice president of sales at the Chattanooga Area Convention and Visitors Bureau, says that overall, the answer is yes. “The entire state is growing the business due to overall quality and expanded facilities, as well as affordable costs,” he says. Eight percent of visitors to the state in 2005 cited conventions and seminars as the primary purpose of their trips, according to the Tennessee Department of Tourist Development. That number continues to grow as a result of revamped convention centers that offer a good perceived value and accessible, unique locations.

Chattanooga’s recent efforts to further improve its downtown area have pushed the city’s convention center to the forefront among Tennessee’s big cities. Genovesi says Chattanooga is on track to have its best year since expanding its convention center five years ago. The center is in walking distance of 2,000 hotel rooms and more than 30 restaurants, and it spans 312,000 square feet—including 100,000 square feet of clear-span exhibit space. “Approximate groups are up 10% over last year. The Convention Bureau room nights are estimated to be up 20% in 2007 versus 2006,” Genovesi says. Improved airport costs over the past year have boosted sales, and new nonstop flights to Houston, Dallas, Tampa/St. Petersburg and Orlando are helping to lure in convention attendees, as well.

Memphis also finds itself well situated, with an international airport drawing growing numbers of business travelers. Industry magazine Successful Meetings named Memphis “one of the top ten emerging convention destinations of the new millennium.” The recently completed $92 million renovation and expansion of the now 350,000-square-foot Cook Convention Center offers the city’s largest exhibition and meeting space, with access to more than 3,000 hotel rooms in the downtown area. In addition, a diverse array of convention centers are scattered throughout the city, from Agricenter International’s indoor/outdoor space to the FedExForum’s upscale, reception-style spaces, which means that there is a distinctly unique space available for many different types of groups.

Similarly, Knoxville boasts a 500,000-square-foot convention center, with 7,500 guest rooms available across the county. Two new hotels were recently added to the downtown cityscape, and according to Knoxville Convention Center assistant general manager Susan Eaton, “There are now six different price points in downtown, and different service levels.” Eaton says that affordability paired with a broad range of prices make Knoxville an appealing destination. The University of Tennessee drives much of the city’s convention business, with scientific, agricultural and engineering meetings taking center stage. In addition, Eaton says, Knoxville’s interstate accessibility has boosted the area’s popularity in a time of rising air travel costs and limitations.

The Nashville Convention and Visitors’ Bureau also reports a strong performance in attendance levels over the past two years—last year’s sales were the second best in the city’s history—but its growth this year lags behind that of its counterparts. Many argue that the downtown convention center is outdated and not spacious enough. With about 150,000 square feet of meeting and exhibit space, it is noticeably smaller than the convention centers in Memphis, Knoxville and Chattanooga. “The volume of the business has grown to where we’re meeting our capacity levels, so we don’t have room to grow,” says CVB president Butch Spyridon. Sales for 2007 are falling behind last year’s, although demand remains strong, he says. One thousand hotel rooms are in the pipeline for downtown Nashville, adding to the 3,000 rooms already available, and Spyridon worries about filling those rooms without a larger convention space.

Whether a new convention center will be built has yet to be determined, but regardless of the facility, Nashville remains enticing to convention-goers due to its perceived value, entertainment options and ease of access. “Southwest Airlines has made air travel affordable, and interstates make it accessible,” Spyridon says.

The downtown area offers price points at both ends of the spectrum in dining and entertainment, and contrasts with Nashville’s other major convention center, and the privately operated Gaylord Opryland Hotel. Gaylord Opryland serves up an entirely different type of experience for professional groups wishing to conduct business under one roof.

From one end of the state to the other, the conventions business seems to be moving in a positive direction. Nashville’s struggle to accommodate rising demand is a good problem to have, and is indicative of the state’s growing reputation as a convention destination. As air travel becomes less desirable, Tennessee’s several major highways make the state a pleasing option for visitors, as do the unique aspects of each of Tennessee’s regions. The remainder of 2007 looks good for the conventions business.