Memphis is booming with growth, and the Cook Convention Center is no exception with its recently completed $92 million expansion last year. According to Kevin Kane, president of the Memphis Area Convention and Visitors Bureau, the convention industry is undergoing dramatic changes, making the market increasingly competitive. Although convention centers are built to be loss leaders, communities are made nervous by having to absorb huge financial losses.

The cost of luring conventions to a community has become more expensive, according to Kane, largely due to the overbuilding of convention centers across the country. In the 1990s, there was a glut of convention centers constructed, making it difficult for cities to compete for business. There is a sticker shock inherent in the investment required to lure good business. Large groups receive tremendous incentives from cities with new convention centers eager to host their meetings. Kane agrees with his counterparts in Nashville, Knoxville and Chattanooga that the convention business is definitely a buyers’ market.

Kane tempers his optimism but agrees that the convention business appears to be on an upswing, bouncing back both in the association meetings and corporate meetings markets.

Anetha Grant, senior vice president of sales with the Nashville Area Convention and Visitors Bureau, concurs. “This is not an order takers’ market. We continue to evaluate where our business is coming from, and the greatest percentage of the convention industry comes from our association meetings market. But the corporate meetings market is making a comeback, too.” For the fiscal year ending in June, the Nashville Area Convention and Visitors Bureau set all-time records for the number of rooms sold. For the fiscal year ending June 2003, the number of delegates that visited Nashville numbered 667, 436. “A big part of our success is our ability to book a convention for multiple years,” Grant says.

One of the attractive features of booking a convention in Nashville is the choice of convention destinations. Within Nashville, the downtown convention center offers an urban experience for convention delegates. Restaurants, attractions and entertainment are available right outside its doors. Opryland Hotel, with its 2,883 rooms, is more of a resort-type sell. If a meeting planner wants to keep a convention contained, the Opryland Hotel offers lodging, meeting space, meals, attractions and entertainment, all within its expansive complex.

In Knoxville, sales of hotel rooms for convention business has increased exponentially. From approximately 13,000 rooms sold to convention delegates in the 2003 fiscal year, new convention business has increased to sales of over 42,000 rooms in the fiscal year ending in 2004. Gloria Ray credits the Knoxville Tourism and Sports Corporation’s changed strategy for their successes. “Every city has hotel rooms. We have to ask ourselves, ‘What kind of experience makes Knoxville special?’”

Ray says her sales staff works hard to customize each experience for convention delegates. For example, a sports experience might include golf or rafting. Other options might include tours of historic homes or riverboat trips, and amenities extend beyond what delegates find in their hotel rooms to how they are transported and entertained. And while convention centers are available in most cities, Knoxville is proud of its new center, with its 500,000 square feet of space and 120,000 square feet of continuous exhibition space.

Steve Genovesi, vice president of sales for the Chattanooga Area Convention and Visitors Bureau, is proud of his city’s convention center, as well. The Chattanooga Convention and Trade Center doubled in size in 2003, and the state-of-the-art facility now offers 300,000 square feet of meeting and exhibition space. Around the convention center, area hotels, many of which are historic buildings such as the Chattanooga Choo-Choo, the Read House (soon to be a Sheraton) and The Chattanoogan, offer approximately 2,000 rooms.

The central location of Chattanooga to major hubs in the Southeast is a major draw for convention planners. Chattanooga is a “safe, walkable city,” according to Genovesi, “with the amenities of a larger city and the charm of a small town.” Chattanooga is experiencing major growth these days in its local economy and physical facilities, and it has always been known as a terrific tourist destination, offering natural attractions such as Rock City and Ruby Falls to its convention delegates.

The Tennessee Aquarium recently added a saltwater aquarium to what is the world’s largest freshwater aquarium. The 21st Century Riverfront project is expanding the riverfront and adding a Riverfront Pier, making it more boater-friendly. Major development is underway about a block from the river, with the addition of more restaurants and condominiums, which will add to the growing vibrancy of downtown Chattanooga. The Hunter Museum, featuring American art, is doubling in size, allowing it to host traveling exhibitions. Across the state, convention business is on the rise, bringing much-needed funds into our major cities and impacting the state’s economy as a whole. Tennessee is a prime location for regional meetings with its central position in the Southeast. While the convention market is competitive and the cost of doing convention business is steep, the current trend, based on recent sales statistics, appears to be both upward and sustainable.

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