An Analysis of the Impact of Convention Centers on Hotel Occupancy Tax Revenues in Texas Cities
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Cities across the nation, and the State of Texas, are subsidizing the construction of new convention centers or the expansion of existing convention facilities. Though the convention industry filters billions of dollars into the State, not every city is equipped to be a convention city. Cities that spend millions of dollars to construct or renovate a convention center may be making an investment that will show no returns. In this study multiple regression analysis is employed to evaluate the impact of convention centers on hotel occupancy tax revenues in 17 Texas cities. The evidence of the study indicates convention centers have an uncertain impact on tax revenues in the majority of cities studied. Four cities -Beaumont, Corpus Christi, Midland, and San Angelo - deviated from this trend.