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Originally Posted by Tech House
Why? I don't see how this is a necessity for Austin. We're going to thrive with or without the larger conventions that could be attracted, but expanding the CC dead zone and tourist-oriented businesses could significantly detract from the distinct Austin vibe of downtown which is already in great flux.
I don't see how convention business really contributes to a city's core identity and purpose. If all goes well it can be a cash cow, but in many cases it's a cash drain. I recently read a very good analysis discussing all the hidden costs of hosting conventions, and the tricks that are used to pump up estimates of what conventions bring to cities. I don't recall the source, however.
SXSW is pretty unique in its ability to truly add to what makes Austin Austin, but most conventions bring a crowd of folks who aren't interested in the host city and will mostly spend their money on chain hotels, chain restaurants, and strip clubs. I've been a convention-goer a few times, and we were a dull lot who didn't contribute anything to the vitality and ambiance of our host cities. And, FTR, none of us visited strip clubs. That's just something that I've heard is a "thing" with many conventions, especially the national political party conventions. Gotta love our politicians... not.
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I think there're some worthwhile caveats for convention center updates/rebuilds/etc on a generalized level, but at the same time I also believe the value proposition is highly specific to the market in which it's being considered. I've worked within several mid-size convention packages in my career and I have to say Austin's in an amazing place right now. We're one of the hottest destinations in the country, and all of our major metrics (ADR, RevPar, Occupancy) track that. It's pretty much us and Nashville and Portland for places that people want to visit and meet in.
Some upsides: we're walkable, we're friendly, the Center and the hotel package is relatively convenient. We have Sixth Street. Town Lake for natural beauty and recreation. Really stupendous food. And we have that thing, that snap, that people really want right now. As a guy who sells this place to out of towners, I've really had a hard time articulating what that snap actually is, but it's real and people across the country know it. I have a theory that it's mostly about youth culture and that we're like the Millenial Homeworld and people like that . . . but I'm still working on it.
Anyway, we're in a really rare position to take advantage of that crazy demand. IMO it can go one of two ways -- we can acknowledge the demand, ride it, and let it subside over time. Or embrace it, lock in one of the drivers of that demand, and see where it takes us.
IMO, the business of Austin now is very much one of hospitality and tourism. It's the side product of being an awesome city