The Chattanooga Convention Center should experience flat revenue and host about the same number of events next fiscal year, officials say.
“With everything going on around us and the talk of (economic) slowing, we didn’t feel it would be prudent to come in with a budget with any increases,” said Tim Riddle, the center’s executive director. “We’re flat, but I don’t see us slowing.”
The convention center’s governing board, the Carter Street Corp., approved the center’s 2009 budget on Wednesday.
The fiscal year, which starts July 1, is expected to have net event revenue of nearly $3.46 million, up from the $3.45 million budgeted for the current year. Expenses from hosting events are expected to hit $3.46 million next year, versus a budgeted $3.45 million in the current year.
The budget calls for $438,000 in operating deficit, up from a budgeted $423,000 this fiscal year, which is better than deficits at some other convention centers, Mr. Riddle said. Carter Street sent a request Wednesday to the Chattanooga City Council and Hamilton County Commission for $219,000 apiece to cover the deficit.
Chattanooga officials likely won’t know until June how much the city will give the convention center, said Dan Johnson, chief of staff for Mayor Ron Littlefield. The city gave the convention center about $200,000 for this fiscal year, he said.
The convention center will hold between 600 to 650 events, Mr. Riddle said, including 50 conventions, about the same number of events that are being held this year. The center has generated an estimated $23.1 million in economic impact in the first eight months of the fiscal year, compared to a $26.1 million impact in the same period a year ago, according to Carter Street.
The convention center is drawing business more consistently since its expansion five years ago, said Jimmy Hudson, Carter Street chairman. Even though the 2009 fiscal year will be flat, he said, 2008 has been a good year.
A slow economy could hurt bookings of local events, he said, but may help Chattanooga gain national conventions.
“There could be less Orlando, big-city, big-dollar conventions,” Mr. Hudson said. “Chattanooga has a big advantage over convention attendee cost.”
