San Antonio Prepares Convention Center Expansion Amidst Competitive Landscape

During the recent San Antonio City Council Budget Work Session, significant discussions centered around the city's hotel occupancy tax and the future of its convention and sports facilities. Budget Director Justina Tate provided an overview of the hotel occupancy tax, currently set at 16.75%, with 9% allocated to the city. This tax has shown a promising recovery post-pandemic, with projections indicating a 6.4% increase in fiscal year 2025, driven by compliance from short-term rental platforms.

Patricia Musquisse Contour, Director of the Convention and Sports Facilities Department, highlighted the critical role of the Henry B. Gonzalez Convention Center and the Alamodome in San Antonio's economy. The convention center alone hosted around 260 events in 2024, generating nearly $364 million in direct spending. However, the facilities face challenges due to increased competition from other Texas cities investing heavily in their own venues.

Musquisse emphasized the urgency for San Antonio to expand its convention center to retain and attract major events. The city has reportedly missed out on over $700 million in potential revenue from conferences due to inadequate meeting space. The proposed budget for fiscal year 2026 includes $91.9 million for convention and sports facilities, with $23 million earmarked for capital improvement projects, including essential upgrades to the Alamodome and Convention Center.

The meeting underscored the importance of timely investments in these facilities to ensure San Antonio remains competitive in the tourism and hospitality industry. Without proactive measures, the city risks losing out on significant economic opportunities that large conventions and events bring, which are vital for job creation and local revenue. As the city looks ahead, the decisions made now will shape the future landscape of San Antonio's convention and sports offerings.