CONVENTION INDUSTRY AND ITS EFFECT ON HOTELS

Abstract

Since its inception in 1971, the convention industry in Singapore has been growing steadily. The recent economic downturn does not seem to affect the industry as it records a fourteen percent growth in 1985, as compared to the negative growth rate of the economy for the same period. At this turning point of the Singapore's economy where major structural changes are expected, one would ask if the growth of conventions will continue. It is thus appropriate to look at the industry and assess its performance as well as its future directions. The hotel industry is closely related to conventions. As hotels provide most, if not all, of the needs of conventions, a majority of the meetings are held there. However, conventions only constitute a supplementary function of the hotel. Over the years, there has been an increasing number of hotels providing convention facilities. The capacity of the facilities are also getting bigger. Further , more sophisicated and more comprehensive range of technical equipments are being installed in hotels. The study seeks to look into the two industries more closely and determine how they influence and affect one another.