Coun. Litke asks tough questions about Convention Centre

JOHN MOORHOUSE/Penticton Herald Friday, February 12, 2010
A lack of tradeshow bookings at the South Okanagan Events Centre has some members of Penticton city council asking tough questions. However, the general manager of the facility‘s operating firm says that should change over the next couple of years. Commenting during budget discussions this week, Coun. Garry Litke lamented the lack of tradeshows booked into the SOEC. He noted it was designed to include the second largest tradeshow capabilities in the province. “I thought after the Events Centre got built, we would start attracting some large-scale conventions and tradeshows because we had the floor space for major machinery and so on,” he said. “That hasn‘t happened.” Coun. John Vassilaki echoed those concerns, pointing to the drop in convention business at the nearby Penticton Trade and Convention Centre. “The people just aren‘t promoting it properly,” he said. “We used to be the second largest convention centre in British Columbia. Now I think we‘re closer to fourth.” Curtis Webb, general manager for Global Spectrum in Penticton, said Thursday the main impact of the economic downturn was a reduction in the number of delegates attending the conventions, rather than a decrease in conventions themselves. “I don‘t think it‘s necessarily that the conventions aren‘t still coming, it‘s just that the conventions are coming with less people. There‘s less economic impact to our community.”

City statistics reveal that total convention centre revenues dropped from $1,743,000 in 2008 to $1,240,000 last year. Delegate room nights also took a hit, falling from 39,513 two years ago to 35,972 in 2009. However, bookings for 2010 indicate an upswing to almost $1.4 million in anticipated revenues and 37,380 room nights. The overall economic impact to the community is estimated at $12.1 million. Webb said one convention tradeshow was booked for the Events Centre in 2009, but fell victim to the slower economy. The Building Supply Industry Association had originally anticipated 275 booths, which would have required space at the SOEC. However, the convention was later downsized to 170 booths, which were all allocated to the convention centre. The 2008 Union of B.C. Municipalities convention had also booked both venues, but was forced to drop those plans when construction work on the SOEC had not been completed by the September convention dates. “We don‘t have anything on the books for 2010, as far as utilizing both buildings for conventions and tradeshows,” Webb said. “We do have some solid prospects coming, but not until 2012 and 2013.” Although Penticton‘s convention business is still restricted by a lack of hotel rooms, Webb said the convention centre is starting to rebound. Global Spectrum is predicting a 19 per cent increase in revenues in 2010. “We‘re a convention centre that‘s making money in a down economy,” Webb said. “The amount that City of Penticton taxpayers are subsidizing that building is slowly decreasing each year since we‘ve been here.” Webb noted one large convention has been booked for November, which could bring direct revenues of over $100,000. He suggested the figures for 2011 will undoubtedly go higher as more bookings are confirmed.