Post-pandemic, San Diego’s convention business has rebounded back to above-average normalcy, according to local tourism officials.
However, as 2024 kicks off, a downtown convention center expansion plan remains stuck in a fourth year of legal limbo.
And the popular Comic-Con International convention, which annually draws 135,000 attendees, isn’t contracted to return after this July’s event.
Local and state tourism executives discussed the state of the industry at a January 9 press conference held inside the San Diego Convention Center during the popular Professional Convention Management Association’s “Convening Leaders” annual meeting.
In 2023, the convention center hosted 101 gatherings (conventions, meetings and events) that included 736,000 attendees and resulted in 715,000 hotel room nights, according to the San Diego Convention Center Corporation.
Those gatherings accounted for $1.4 billion in regional impact, $800 million in direct attendee spending and $30 million in hotel and sales tax revenue that went into city coffers supporting core services.
The SDCC estimates 2024 will see a $1.78 billion regional impact.
SDCC president and CEO Rip Rippertoe noted that this year marks the 35th anniversary of the convention center, but had no insight on whether a legal decision on the center’s expansion was forthcoming.
Honestly, we know what we know by reading it in the press,” Rippetoe says.
In review: A 2020 ballot measure to expand the convention center failed to get the two-thirds majority vote needed for an issue that includes raising taxes (Measure C sought to raise the city’s 10.5% hotel tax to 13.75%.)
Subsequently, other similar statewide cases have been ruled to only need to surpass a 50% majority vote. The courts have bounced back and forth on the outcome of the vote on San Diego’s Measure C.
“Regardless of the court ruling, we need to continually invest in our venue,” Rippetoe says. “We’ve put in new carpet and painted and done all those kinds of normal maintenance things. And we’re looking at an RFP for a new roof on the west end of the building.”
During the press conference, Rippetoe talked about the American Society of Hematology’s annual meeting, which regularly brings 30,000-plus attendees to the convention center. He noted that organizers have to get “creative” with nearby outdoor space to make room for the group’s slate of activities and events.
I asked if the Hematology group has threatened to leave San Diego out of its rotation if the convention center is not expanded.
“What they have said is that they’ll take more space if we ever get it,” Rippetoe says. “There are other shows that say that as well. We have to keep being creative with our customers.”
Rippetoe says San Diego has not lost any conventions because a group has outgrown the center. He admits there is a sector of conventions “we don’t even talk to because we know they’re too big for us.”
San Diego Tourism Authority president and CEO Julie Coker wants to be clear that the benefit of an expansion is not just for the largest conventions.
“We’d also like to expand the convention center so we can hold two groups simultaneously,” she says. “That’s how we’re going to grow occupancy. We’re definitely one of the top destinations for meetings and events, so being able to expand to remain competitive is extremely important.”
And where do things stand with re-signing Comic-Con (which will celebrate its 55th anniversary in San Diego this year)? The Con usually re-ups its contract every three years but is not currently inked for after 2024.
“San Diego and Comic-Con are synonymous,” Coker says. “”We’ve got a great relationship. We are working through dates and contract elements and we will definitely get there.” SDSun
