INDUSTRY LEADERS
- October 2004
Convention Attendance Strong and Growing
The Lane Report recently surveyed convention and visitors bureau leaders in Kentucky’s top three venues about their regions’ strengths and futures. Here’s what they had to say.
How does convention attendance in your market compare to one year ago?
 Northern Kentucky: The market is much stronger than a year ago and is up 17.5 percent over 2003.
Lexington: In 2002, there were 120,915 total convention attendees. In 2003, that number rose to 159,760. The projected number of attendees in 2004 is 164,151. These numbers are based on those meetings and conventions that are booked by the LCVB and those that are reported to us by the hotels. There are other meetings that hotels do not report to the LCVB.
Louisville: We are up seven percent over last year.
 What are the top two factors affecting the level of activity in your market?
Northern Kentucky: Economic conditions and the fact that more planners are delaying their decisions for a wide range of reasons. These two have made obtaining definite bookings more difficult.
Lexington: In the past, one of the major factors affecting the ability to attract meetings was the condition of the Lexington Center, which has now been totally renovated with additional ballroom, meeting and public space. Another factor which had a negative effect in the past was the lack of competitive airfares and numbers of direct flights from major cities. Within the last two years the numbers of direct flights has increased from eight to 12 and airfares have become increasingly competitive.
Louisville: One: $700 million of new tourism infrastructure is underdevelopment. Two: The improvement of our hotel package, like the Louisville Marriott Downtown project, Galt House Hotel & Suites renovation, along with other hotel renovations.
Briefly describe the two largest meetings planned for your market this year.
Northern Kentucky: Cincinnati Insurance Claims Division Annual Conference and the Association for Manufacturing Excellence (an international group dedicated to the highest standards in the manufacturing industry).
In the first, the entire claims network gets together and learns the latest while also networking. Most of these people work out of their homes and this is the only time they are all together. Our international airport, CVG, and Delta’s international flights helped in booking this group as well as the Tri-ED economic development group. We anticipate 2,600 people, and between 1,200 and 1,500 people, respectively.
Lexington: Because of the lack of facilities in the past, the city has focused on events in addition to meetings. Events such as Breyerfest, Rolex, Sweet 16, Bluegrass State Games, and soccer tournaments are larger than our typical meeting. Although there is a lot of focus on meetings, our largest events are not related to meetings.
On that note, the two largest meetings or conventions this year were Coal Prep and Aldersgate Renewal Ministries. Both brought over 2,000 attendees to Lexington.
Coal Prep is a major industry convention and trade show. Aldersgate is a religious convention.
Louisville: National FFA – 51,000 (a student convention with a trade show)
Mid-America Trucking Show – 60,000 (a trade show open to the public)
What is the range of convention attendees your market can comfortably accommodate?
 Northern Kentucky: The optimum group for us is 2,600 to 3,000 people, however our range is from 500 to 3,200.
Lexington: For a group event, sizes go up to 20,000 people (Rupp Arena, Keeneland, Rolex). For actual conventions/ meetings, Lexington can accommodate up to 4,800 people comfortably for meetings/meals. For larger general sessions, seating for 8,000 (chair back seats) and an additional 10,000 (bench seating) is available at Rupp Arena (total of 18,000).
Louisville: Louisville can accommodate conventions of 5,000 to 50,000 people.
 How many hotel or motel rooms are available in your market?
Northern Kentucky: 7,200
Lexington: Lexington/Fayette County currently has 7,394 hotel rooms. The Bluegrass Region (Central Kentucky’s 15 counties) has 12,000 hotel rooms.
Louisville: 17,000 hotel rooms in Greater Louisville
What is the hotel and motel occupancy level in your market (percent occupied)?
Northern Kentucky: 54 percent in both 2003 and 2004 (through July 31)
Lexington: 61.4 percent in 2003, 59.1 in 2004 (through June 30)
Louisville: 52.2 percent in 2003, 54.1 in 2004
What are two key reasons conventions select your market?
Northern Kentucky: Location, accessibility, and reputation for exceptional customer service.
Lexington: Lexington is a unique blend of rural and urban. People are attracted to its scenic beauty and the history of the region. Also, sizable conventions tend to be the only game in town and will get our full attention.
Louisville: 1. Affordability and quality of facilities; 2. Proximity of facilities all within walking distance of each other; 3. Central location geographically within the United States
Are agritourism venues successful in your area?
 Northern Kentucky: Not unless we consider the beer-making capabilities at the Hofbrauhaus. Then that would have an attendance of 400,000 per year with 500,000 liters of beer sold per year.
Lexington: Agritourism has always been our No. 1 attraction: The Kentucky Horse Park, The Thoroughbred Center, horse farms, Farmers Market, Woodford Reserve, and Buffalo Trace. In addition, we have Chrisman Mills, Talon, Equus Run, and Chateau du Vieux Corbeau Vineyards. We may be the city of Lexington, but we market all the Bluegrass.
Louisville: Louisville does not have many agritourism venues but does a great job in hosting agri-conventions at the Kentucky Exposition Center. The top agri-venue would be Hubers Farm in Southern Indiana.
 What is the most creative or innovative meeting and convention idea in your market for 2004?
Northern Kentucky: Cincinnati Insurance did an all-Americana theme for the 2,600 and finished it with an event at the Arnoff in Cincinnati that featured Bob Eubanks (The Newlywed Game), Shelly Long (Cheers), and Barry Williams (The Brady Bunch).
Lexington: The ideaFestival: A unique gathering of internationally recognized thought leaders spanning business, art, education, technology, film, design and the sciences – exploring the intersections among all these fields.
Louisville: We have developed two Web-based commercials that have proven to be extremely popular. Very cutting edge.
How are future bookings for 2005 and 2006 progressing compared to 2003?
Northern Kentucky: 2004 could be a record year for business generated for the convention center as we could see over 38,000 room nights just in center business. For 2005 we already have over 28,000 booked room nights now for the center and have over 18,000 booked for the center in 2006. In 2006, we are adding approximately 9,500 definite room nights a month and between 40 to 50 percent of those are going into business for the convention center.
Lexington: While we are on pace with past years, we are not where we would have been had we been able to sell the Lexington Center in 2002/2003. Due to the uncertainty of finishing the center, we were also unable to begin a marketing campaign. 2005/2006 will not have the number of larger meetings due to the lead time of booking these meetings.
Louisville: Our activity or booking pace is way up compared to 2003. We are seeing larger conventions inquiring about Louisville, which is very positive.
What can the state of Kentucky do to help boost tourism business in your market?
Northern Kentucky: The state can help when the new branding is complete by pushing that brand in our feeder markets, and we all intend to share our media schedules so we can extend our resources. This way, when they’re running we would probably not run and save our efforts to fill in around their schedule. They are also starting to place more emphasis on all market segments and not just the tourism market. It is a big help to have the state help with meetings and conventions as well as assisting with international sales and service.
Lexington: Increase the budget and advertise more. The state’s inability to market the state as a whole has definitely had an impact over the years. We know by experience that advertising pays.
Louisville: The state has been very instrumental in assisting us with booking the National Rifle Association and have partnered with us on retaining the National Quartet Convention. When called upon, the State has risen each and every time. The state is producing a meeting planners guide, with which we are heavily involved. Kentucky needs more state advertising in our neighboring states to further develop the drive market.
What new tourism, hospitality or convention facilities are planned to open soon in your market?
Northern Kentucky: Cincinnati will reopen its expanded and remodeled convention center in 2006.
Lexington: Lexington Center was complete as of this September. We are hopeful for a new climate-controlled arena at the Kentucky Horse Park (2007). The Lexington History Museum opened last year. Talon Vineyard has opened, joining the Equus Run and Chrisman Mill vineyards in the region. Two hundred new living spaces are under construction in downtown Lexington and 700 are on the drawing board. While this is not an attraction per se, this is something that creates vitality and gives visitors a sense of the community.
Louisville: Louisville Marriott Downtown, Muhammad Ali Center, Kentucky Center for African-American Heritage, Expansion of the Kentucky Exposition Center, two Wyndham Hotels (one downtown and one at the airport), Galt House Hotel & Suites renovation. Recently opened are the Frazier Historical Arms Museum and 4th Street Live!
editorial@lanereport.com
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