After a pandemic slump, the sector generates billions in revenue and jobs, solidifying its role as a key economic driver
Virginia’s meetings and conventions industry has made a triumphant return, exceeding pre-pandemic levels of spending and solidifying its position as a vital contributor to the state’s economy. According to a new report released by the Virginia Tourism Corporation, meetings and conventions generated a staggering $5.8 billion in direct spending in 2023, with visitors alone contributing $2.1 billion.
“The resurgence of Virginia’s meetings and conventions sector to pre-pandemic levels is an economic impact win that should be celebrated,” said Caren Merrick, Virginia Secretary of Commerce and Trade. “Generating $5.8 billion in direct spending and employing more than 56,000 Virginians, this sector is vital to our Commonwealth’s prosperity.”
Operational Spending Drives Impact
Interestingly, a significant portion of the economic impact stems from operational spending, which includes expenses related to venue rentals, staffing, AV production, and event management. This accounted for 64% of the total direct impact, highlighting the complex ecosystem supporting the industry.
“This recovery is a major milestone for our markets with large hotels, meeting spaces, and convention centers,” noted Dan Roberts, Vice President of Research & Strategy for Virginia Tourism Corporation. “Meetings and convention visitors are core drivers of weeknight foot traffic in our downtown and convention center markets throughout the Commonwealth, benefiting our restaurants, retail, and recreational businesses.”
Visitor Spending Surges
Visitor spending within the meetings and conventions sector also experienced robust growth, increasing by 14% from 2022 and outpacing the overall growth in statewide visitor spending. Lodging and food and beverage were the top spending categories, capturing 42% and 30% of visitor dollars, respectively.
The industry’s resurgence is particularly remarkable considering the significant downturn it experienced during the COVID-19 pandemic. In 2020, meetings-related visitation plummeted by 72%, and spending decreased by 73%. It took two years for the sector to regain its footing, finally reaching 2019 levels of spending in 2022 and full visitation recovery in 2023.
Regional Breakdown and Future Outlook
Northern Virginia, with its abundance of hotels and meeting spaces, leads the state in meetings-related spending, accounting for 47% of the total. Coastal Virginia follows with 23%, while Central & Southern Virginia and Western Virginia contribute 18% and 12%, respectively.
Looking ahead, industry leaders emphasize the importance of continued investment in infrastructure and marketing to maintain Virginia’s competitive edge.
“Investing in our meetings infrastructure and enhancing our competitive edge is essential for Virginia to continue thriving as a top destination for business and leisure,” said Joni Johnson, Director of Domestic Sales for Virginia Tourism Corporation. “Tourism stakeholders across the Commonwealth have cited insufficient meeting space and hotel rooms as key reasons for losing business to competitors.”
The study, conducted in collaboration with Tourism Economics, underscores the significant economic impact of the meetings and conventions sector in Virginia. As the industry continues to recover and evolve, it promises to play an even greater role in driving economic growth and creating jobs across the Commonwealth.
Any thoughts, opinions, or news? Please share them with me at vince@meetingsevents.com.
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