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The Fourth-largest Exhibit Hall in the Country, Georgia World Congress Center,
 Earned $225,788 in the Year ended June 30, 2004; In fiscal 2001, Which
 Ended Two Months Before Sept. 11, the Center Earned
 a Profit of $10.6 million
By Leon Stafford, The Atlanta Journal-Constitution
Knight Ridder/Tribune Business News

July 30, 2004 - The Georgia World Congress Center's operators thought they would end fiscal 2004 almost $5 million in the hole because of a continued slump in the convention business and an ill-timed expansion.

But belt-tightening, energy conservation and an increase in short-term corporate business helped the convention center end up with a profit.

The facility, the fourth-largest exhibition space in the country, eked out $225,788 in the year ended June 30, Executive Director Dan Graveline told members of the authority board this week.

"I never thought I'd see the day I'd be so excited about a profit of $226,000," Graveline said.

The convention business was one of the hardest-hit sectors after terrorists struck on Sept. 11, 2001, and the economy tanked. Trade show attendance fell off, and conventions were downsized or canceled.

The problems coincided with the opening of expansions at several of the nation's top facilities, many of which were given the green light for construction during the heady dot-com '90s, when growth seemed boundless. The Georgia World Congress Center opened its 1.4 million-square-foot expansion in February 2003, making it a 3.9 million-square-foot behemoth.

To be profitable in fiscal 2004, the GWCC reduced energy consumption in unused parts of the building and hired minimal staff to help with the expanded space. The center also brought in more catering dollars, helping it exceed projected revenue by $2.6 million, said Katy Pando, a GWCC spokeswoman.

Sales personnel also aggressively sold the facility as a great place for corporate meetings, especially among pharmaceutical concerns, Pando said. This was significant because corporate gatherings can be booked and meet in less than a year.

On the other hand, trade shows and big conventions -- the bread and butter of the industry -- take longer to nail down, usually booking in advance for meetings that will take place five or more years down the road.

"The staff absolutely buckled down and stayed committed," Pando said. "It's been a real concerted effort that really paid off."

The GWCC is not the only convention center enjoying better-than-expected numbers.

Revenue at one of its top competitors -- Orlando's Orange County Convention Center -- was up 54 percent in March, 73 percent in April and 45 percent in May compared with the same months a year ago.

"We were pleasantly surprised," said center Deputy General Manager Kathie Canning. "And that was with our addition. But, then, last year was a particularly bad year."

New Orleans' Morial Convention Center hosted eight of the nation's 12 large medical meetings this year, said Beverly Gianna, spokeswoman for the New Orleans Convention and Visitors Bureau.

"June for us was one of the best Junes in anyone's memory," she said.

But the GWCC's Graveline kept the positive reports in perspective. This year's profits pale compared with what he describes as the good old days prior to the economic downturn.

In fiscal 2001 -- which ended about two months before the Sept. 11 attacks -- the center earned a profit of $10.6 million.

-----To see more of The Atlanta Journal-Constitution, or to subscribe to the newspaper, go to http://www.ajc.com.

(c) 2004, The Atlanta Journal-Constitution. Distributed by Knight Ridder/Tribune Business News. For information on republishing this content, contact us at (800) 661-2511 (U.S.), (213) 237-4914 (worldwide), fax (213) 237-6515, or e-mail [email protected].

 
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