9.15.22 - As convention centers bounce back from the pandemic, what about the Javits Center?
' The U.S. convention business continues to recover after being hit hard by the onslaught of the pandemic.
The Center for Exhibition Industry Research’s CEIR Total Index, a measure of convention business activity, was in the second quarter about 25.5% below 2019 levels, according to a forthcoming report the group shared with Bloomberg. In the first quarter, it was 37.9% below pre-pandemic levels, and in the second quarter of 2020, it was 100% below.
The figures bode well for cities and states that are pouring money into convention centers to attract more exhibition business. At least 35 of these projects are underway, Bloomberg reported in March, and they are attractive to local governments because they can bring in revenue tied to hotel and sales taxes.
In New York the pitter-patter of conventions, trade events and business meetings has begun to seem more like a cascade, as organizers overcome planning potholes and respond to demand for in-person get-togethers, especially for longer-lead-time events later this year.
The CEIR group now expects its Total Index in 2023 to be about 10% below 2019 levels, and in 2024, to be about 3.5% above 2019. The CEIR Total Index tracks how much space conventions are using, how many people attend, the number of companies exhibiting and revenue. It focuses on business-to-business events.
Still, the initial comeback is measured. The Javits Center, the largest convention center, has 35 events booked until the end of the year. In the busy years before the pandemic, it hosted about 175 gatherings annually.
That is a signal of how long the haul may be to fully return to pre-pandemic numbers. While NYC & Company foresees domestic business travel reaching pre-pandemic levels by 2025, it counts an additional year before international business travel is back. For this year, it predicts there will be about 65% of pre-pandemic business arrivals, and leisure travelers could come back at 85% of their previous volume.
One convention in particular could help expedite the recovery. New York is one of four finalist cities bidding to host the 2024 Democratic National Convention.
Economic benefits are expected to abound, especially for the ailing hotel and convention center industries, if the city is awarded the 2024 Democratic convention. “The convention will pour hundreds of millions of additional dollars into our economy," Mayor Eric Adams said when he launched the city’s bid.
Atlanta, Chicago and Houston are the other city contenders.
Unlike the failed push in 2016 to host a convention at the Barclays Center in Brooklyn, the city’s 2024 bid has centered on Madison Square Garden and, notably, the Javits Center.
The Javits Center completed a $1.5 billion expansion in May 2021. The project increased the interior space by 50% and added a rooftop park. Amid the turmoil of the pandemic, the space was used as a Covid-19 field hospital, a coronavirus testing center and a place to provide vaccines. '
Read Full Crain's New York Business Article Here