KEY POINTS:
The convention sector in New Zealand is worth $1 billion but a lack of space is putting future success at risk, says Conventions & Incentives New Zealand.
The sector's own trade show starts today in Auckland.
Conventions chief executive Alan Trotter said the sector contributed about $1 billion a year to GDP, with about $250 million earned from overseas.
"We're actually doing well but if we are to grow this business significantly we do have some infrastructural challenges going forward, and one of them is that Auckland really lacks a convention centre of any real size in terms of catering for larger international conventions."
Trotter said the city needed a centre capable of hosting up to 4000 delegates - considerably more than the present maximum capacity of 2500.
Competitors in Australia and Asia were investing in new and existing facilities, increasing choice in the international market.
"There will come a point within probably the next 10 years we will start losing some business because quite simply our convention facilities are not big enough and tend tobe used for multi-use."
The trade show runs until tomorrow with about 160 exhibitors and about 550 buyers from New Zealand, Australia, North America, Thailand, India and Hong Kong.
Exhibitors cover all aspects including hotels, convention centres, suppliers and individual tourism operators.
Trotter expects about $30 million of business to be done during the two-day show.
"It's more than just a talkfest. It's very much a cheque-writing, deal-doing, contract-signing two days and the New Zealand economy is the winner out of all of that."
The record high dollar was not having an impact on the sector, he said.
"We've done research and it's quite interesting that the actual cost of holding a convention in a country ... is around about number five or six on the wish list.
"One of the key wish list items is security and safety in an increasingly turbulent world and New Zealand is seen as a very safe and secure destination."
A seminar organised with Tourism New Zealand during the show aims to shed more light on the Asian market.
Trotter said there had been insufficient understanding of some emerging markets.
