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The International Franchise Association held its annual convention in February 2024 in Phoenix.
After years of adding residents, restaurants and high-rise buildings to downtown Phoenix, leaders are envisioning the next wave of economic development. It would also likely include an expanded convention center and new entertainment district.
More than 3,500 people attended the International Franchise Association convention in February. The group last visited Phoenix in 2019.
“And we've seen a lot of changes in the city's downtown. It's really, really great,” said IFM President and CEO Matt Haller. “The restaurant scene here was great. The hospitality of the staff at the hotel in the convention center was really great.”
It is estimated that nearly 2,000 businesses operate in the downtown area, generally from 7th Avenue to 7th Street and from Jackson Street to McDowell Road. But some say it's missing key amenities.
Ron Price, president and CEO of Visit Phoenix, an organization that promotes Phoenix as a convention destination, said downtown needs another hotel with 800 to 1,200 rooms.
“I always allude to when I first came here three years ago, I think New York Life was moving one of their biggest conventions, and they… “They wanted us to host New York Life, Inc., who wanted to come here. To accommodate that, we would have to put them in 15 hotels across the city,” he said. Told.
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On July 24, 2023, a session titled “How to Involve Women Veterans” was held at the VFW National Convention in Phoenix.
The story of new hotels is not new. This was revealed in his 2019 market research on convention centers. The report also recommends adding meeting rooms, exhibition space and larger banquet halls.
Price recently told lawmakers that other cities are spending big on convention centers, with Los Angeles and Denver expanding and Austin rebuilding.
“With the convention business booming, the city decided to gut the existing convention center and rebuild it. So they decided to spend $1.27 billion to develop and expand the convention center. “We're considering it. And finally, Dallas has done the same thing,” he said.
As competitors expand or build new buildings, Phoenix is looking to become more competitive. Zandon Keating of the city's Economic Development Department explained the idea behind creating an entertainment district around the convention center.
“When they come out of the convention center. This is the destination. This is where the fun begins. The meetings are over for the day and it's time to experience the city,” he said.
City Council will be asked to approve a $500,000 contract with a consultant to help identify, establish and revitalize an entertainment district that will help brand the area. Think San Antonio's Riverwalk, Seattle's Pike Street, and Nashville's Music City Center.
Kristin McKay, Phoenix's economic development director, said that even though the entertainment district is located around the convention center, it is not limited to convention attendees or downtown residents.
“But really, it's going to involve everyone, not just Phoenix, but all of the people around the Valley, reimagining downtown,” she said.
“But really, it's going to involve everyone, not just Phoenix, but all around the Valley, to reimagine downtown.”
— Christine McKay, Phoenix Economic Development Director
It's one thing to rethink it; it's another to come up with the funds to implement it. Deputy Mayor Debra Stark said she is focused on growing the convention business and hopes the state Legislature will allow the city to give more tax incentives to developers.
“Because we need those kinds of tools. As you pointed out, we're competing with other cities and they have those tools,” she said.
In 2024, Phoenix expects to host 304,000 convention attendees and spend 340,000 hotel nights. This year's attendance is expected to be the highest since 2009, the first year of the convention center's expansion.
A 2019 survey of convention center attendees found that 87% lived outside the Phoenix metropolitan area, 70% were from other states and 10% were from other countries.
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Phoenix Convention Center South Building.
According to a 2022 study by Longwoods International, business/convention travelers spent an average of $327, while leisure travelers spent an average of $211. In addition to hotels, the convention business supports caterers, restaurants, entertainment venues, and transportation.
Eric Carr, vice president of Visit Phoenix, said 64 percent of Phoenicians surveyed believe the positive benefits of tourism outweigh the negative benefits. % agree that tourism should continue to be encouraged here, which is also above the national average.
Expanding the convention center, adding major hotels, and developing an entertainment district will be a major undertaking. Ron Price said ideally they should happen at the same time.
“We don’t want to have multiple construction projects going on that will last for years,” he said.
“We don't want to move forward with multiple construction projects that last for years.”
— Ron Price, President and CEO, Visit Phoenix
If the city council approves hiring a consultant for the red-light district, it could collect public input this summer and finalize the plan by the end of the year.
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Sheraton Grand Phoenix in downtown Phoenix.