Date Protection: Studies Show Value of Events

By Gary Tufel -- Tradeshow Week, 6/20/2005

Inevitably, convention and visitors bureaus give consumer show organizers inferiority complexes. That's because, no matter a public show's history with a venue, guaranteed dates are frequently out the window when a more profitable trade-only show dangles the possibility of room nights and bed taxes.

Unless a consumer show organizer comes to the table fully loaded with ammunition. That's what Jim Fricke tries to do.

Fricke, executive director of Colorado Garden Show (producer of the Colorado Garden & Home Show) and president-elect of the Natl. Assn. of Consumer Shows, knows that consumer shows constantly face the threat of losing their facility dates to tradeshows. That's why he consistently commissions economic impact studies to protect his shows by proving their value to the Denver region.

Cities see big economic potential in out-of-town tradeshow visitors pumping money into the local economy and city coffers via expenditures on hotel rooms, restaurants and other businesses. So Fricke keeps plenty of economic impact information on hand. And he thinks others should do the same thing, especially since the current glut of exhibition space that makes consumer shows attractive venue customers may not last forever.

Fricke began his studies in 1999, when he was afraid he would end up like Hart Productions President Chip Hart, who battled Cincinnati for years over tradeshows usurping his public shows' dates. Fricke found that his 1999 show had a $22 million impact on the Denver region, while this year's show generated more than $38 million in local spending. According to the calculations, the show's impact had grown more than 60 percent in six years, after adjusting for inflation.

Although Fricke said he still has few guarantees from Denver officials, he hasn't had date-protection problems for years and credits the economic impact studies he commissions. They're well worth the $20,000 price tag, he said, especially compared to what it would cost in attendance loss and added expenditures to move the show to a different date or venue. Fricke said now he knows his show's value when he goes to Denver city officials to talk about dates, and so do they.

Richard Scharf, Denver Metro Convention & Visitors Bureau president and CEO, said Fricke's show supports 430 jobs, pays tax dollars and stimulates the economy. He said the study is just another way of proving the hospitality industry's actual impact. "It's a lot better to stimulate our economy with flowers and gardens than with smokestacks and factories," Scharf said.

Pat Riha, president of Pat Riha Productions, agreed. Riha, who has conducted studies similar to Fricke's over the years, successfully sued Kansas City, Mo., over date protection. He said the studies were one reason the city settled out of court.

"The convention center's mission is to maximize economic impact on the community, not just on hotels, and our shows do that," Riha said. "We had enough significant data that we felt we could have won our case with a jury. The suit was based on the city violating its policy, but we could have used our studies to show they did that."

Riha said a sound economic impact study gives him political clout and substantial information for local media that are often skeptical of CVB figures. "You have to make the point that all shows contribute to the community," he said.

Patrick Buchen, president and CEO of Adjuvant Expos, has conducted economic impact surveys with his shows for 10 years. He's never had to actually pull them out to save dates from specific threats but "the venues know we do them, and we share the data with them so they can see our shows' value," he said.

Fricke employs Garner Insights to document spending by show attendees, vendors and show producers on lodging and entertainment, food and beverages, parking, transportation and retail and vendor purchases.

Riha said that although surveys can track the number of hotel room nights exhibitors use, consumer show attendees are more difficult to track because they avoid central reservation services. So, when he argues the impact of his shows, he uses figures that can be independently verified or that come directly from legitimate sources.

Typically, Riha's Kansas City RV & Boat Show & Sale events generate an economic impact of more than $12.5 million each; the Remodeling Show generates more than $30 million, which all but dwarfs the majority of Kansas City conventions and tradeshows, he said.

Still, it's an uphill battle. Riha said cities and CVBs have been reluctant to establish balanced survey criteria. Until they do, there won't be a fair way to compare the economic impact of conventions, tradeshows and consumer shows.

Even then, not everybody agrees with Fricke and Riha. Despite his problems with holding dates, Hart said the last study he conducted was in 1991. If the space availability situation were to tighten up again, the need might return, but Hart sees no reason for them now.