Monday, April 10, 2006 | 7:04 a.m.
Chicago convention officials are seething over the National Association of Realtors' decision to move its 100th anniversary convention to Las Vegas in 2007.
The association, which has more than 1.2 million members nationwide, signed a contract to conduct the show at the Sands Expo Center at the Venetian Nov. 13-16, 2007, after promising to have the event in Chicago and signing contracts there.
Industry trade publications have reported that the association bolted from its deal with the host hotel, the Hyatt Regency Chicago, and with the Metropolitan Pier & Exposition Authority, operators of Chicago's McCormick Place convention center, over a dispute about the use of a Hyatt ballroom. Other hotels also have contracts to guarantee rooms for the Realtors that will be broken.
Steve Cook, a spokesman for the National Association of Realtors, wouldn't discuss the negotiations for the 2007 show, but he said the association rotates events to different convention venues every year.
"It's been a long time since we've been in Las Vegas," Cook said. "We always look at cities with the facilities that can handle large groups like San Francisco, Las Vegas, Chicago and New Orleans."
But Chicago convention officials are clearly displeased.
"It's very perplexing," said Leticia Peralta-Davis, chief executive of Chicago's convention authority.
"It's not about the city and it's not about McCormick Place. It's just very surprising that they would unilaterally walk away from these contracts."
Peralta-Davis said the MPEA is studying its options, which could include imposing cancellation fees on the Realtors. She would not estimate the number of contracts broken or the amount the association might have to pay for canceling.
But industry insiders are skeptical that the association would break its contracts over a ballroom squabble. They say the association more likely wants to ensure big attendance and a blow-out party for the organization's centennial, and the association believes that those are more likely in Las Vegas than in Chicago.
Chris Meyer, senior director of convention center sales for the Las Vegas Convention and Visitors Authority, called the switch "a wonderful opportunity for the city."
"There's an enormous upside to this, and we say congratulations to the Sands for booking such an impressive piece of business," Meyer said.
The enormous upside is the spending during the convention. Last fall the Realtors met in San Francisco's Moscone Center, drawing nearly 19,000 people and an economic impact of $34 million. Chicago was counting on the 2007 show bringing $27.9 million to the city.
This year's show is scheduled in New Orleans.
Meyer said he thinks the change of venue is rooted in the well-documented appeal of Las Vegas as a draw for conventions and trade shows.
"The ballroom issue seems like a thin excuse for a change as drastic as this," Meyer said.
A representative of the Hyatt Regency Chicago did not return calls.
Michael Hughes, director of research services for Tradeshow Week, a trade publication that follows the conventions and meetings industry, said he wouldn't be surprised to see more established shows abandon existing locations to try Las Vegas because of the expected attendance boosts.
"Attendance is the name of the game, and Las Vegas has done well with its TV marketing to attract shows," Hughes said.
The industry has experienced "steady, modest growth" with attendance expected to be 3 percent higher this year and gross revenue projected to be up 7 percent over last year, he said.
Las Vegas' ability to snag shows from other cities is wearing a little thin for the city's rivals.
Last year the National Hardware Show left Chicago for Las Vegas. Peralta-Davis said the situation was not the same as with the Realtors. With the Hardware Show, two factions within the industry had different ideas about the direction of the show.
So the show split in two. The Las Vegas version was a big success, while the Chicago event was canceled before it could get off the ground.
Meyer said the Las Vegas event is so successful that the Convention Center ran out of space and ended up losing the show for a year to Orlando.
"It looked like we had plenty of space for them in the South Hall, but the show grew by 40 percent a year," Meyer said.
"We already had the Kitchen and Bath Association in at the same time, so the Hardware Show is going to Orlando in 2007, but they'll be back after that."
Is there a danger that the Hardware Show would be enchanted enough with Orlando to stay there?
"That is why we signed them to a contract from 2008 through 2014," Meyer said.
But as Chicago has learned, done deals and signed contracts can be broken.
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