Title
Economic and Fiscal Impact Analysis of Phoenix Convention Center
Description
This report provides information on the Economic and Fiscal Impact Analysis Update on the Phoenix Convention Center, performed by the Arizona Auditor General, to the Economic Development and the Arts Subcommittee.
THIS ITEM IS FOR INFORMATION ONLY.
Report
Summary
In 2003, the State of Arizona and the City of Phoenix agreed to jointly fund the $600 million expansion of the Phoenix Convention Center (PCC). Economic activity from conventions and events benefits not only the City of Phoenix but the entire state. The expansion project tripled the size of the existing facilities allowing the PCC to compete for a significantly larger share of the national convention and trade show market. Construction began in 2004 with completion of Phase I in August of 2006, and completion of the full expansion in December of 2008. Today, the PCC continues to be ranked as one of the top convention center venues in the country.
By statute, the Arizona Auditor General is required to conduct an annual assessment of the value of direct, indirect, and induced economic activity resulting from regional and national conventions and trade shows held at the PCC. The estimates of economic activity provide the basis for estimates of new revenues to the State General Fund from income, sales, and other taxes generated by the expansion of the PCC. The net fiscal impact to the State General Fund is derived from gross revenues, plus construction impacts; less total distributions by the State to support the expansion project.
Between 2009 and 2025, the PCC hosted 1,064 qualified events. These events represent more than 4.2 million convention attendees and more than 10.2 million occupied hotel room nights. In addition, the estimated direct spending impact by attendees, event organizers, and exhibitors during this period is $4.4 billion. Attachment A provides a detailed summary of events, attendance, and hotel room nights by year and compares actual performance to a "no-build" scenario in which the PCC did not expand. Since 2009, the total economic impact to the State General Fund from this activity is $369.1 million. Conversely, the State distributed $322.9 million in debt service payments resulting in a net positive impact to the State General Fund as a result of the expansion of the PCC.
In calendar year 2025, the PCC hosted a record-setting 92 qualifying events, resulting in our second-highest economic impact year, surpassed only by 2023, which included Super Bowl LVII. After an unprecedented summer with more than 70,000 convention attendees, the PCC welcomed SEMICON West 2025, the world’s leading microelectronics industry conference, along with several other high-profile events that contributed to record-breaking attendance.
As we look forward to the end of calendar year 2026, activity at the PCC remains strong and continues to draw significant attention from industry professionals. At the same time, competing destinations are investing heavily in their convention assets. PCC continues to work closely with Visit Phoenix, our Destination Marketing Organization, to ensure Phoenix maintains its position as a top-tier destination.
Department
Responsible Department
This item is submitted by Deputy City Manager Cynthia Aguilar and the Phoenix Convention Center.