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Convention Center Study

While site selection moves forward at the State Capitol, League has had a chance to review the Report on the Market Feasibility of a proposed Convention Center done by Pannell Kerr Forster, Certified Public Accountants, in 1985.

House Resolution 67 requested that DPED study this subject. The report was sent to the State Department upon completion.

The scope included the assessment of current and future supply and demand characteristics for meeting and convention facilities, potential locations for such a center, the optimal size, the expected operating profits (loss), and the overall economic impact of a center to the economy of the state.

Briefly, the findings are that there is sufficient market demand to develop a mid-size center, Honolulu is capable of hosting a large volume of visitors, and it would be competitive with such facilities ... in the western region.

The study recommends that the city own the center and that it be managed by a professional management team under the auspices of a convention center authority.

Cost to develop the center is estimated at $167 million. A typical year of operation would leave a 425,000 deficit (as is the case elsewhere). "However, returns accrue to the community in the form of City and State tax revenues from increased spending by delegates coming to the area to attend the center's functions."

Other secondary gains noted come from continued employment and compacts from the cost of construction and long-term impacts derived from delegate spending. Net 30-year impact of revenues over expenses is estimated at $2 billion.

DPED's Office of Tourism has loan copies of this report.

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