The large scale networking is the way that the event management companies arrange the needs of the attendees in the host city. These companies establish contacts with different companies that can provide services in the areas of entertainment, transportation, food and beverage, and housing. The system has its strengths and weaknesses. The strength for instance is a DMC, which will provide what they believe are the best companies in the area that can favor in terms of providing facilities when the meeting or the conventions are arranged in the city. The weakness is the scope of showing bias towards one company as they could have bribed that company or has special relation with them. That means the company that will be hired might not be the best company in the city.
The reasons the cities enter into a competition to get events to their destinations goes far beyond just holding the meetings and conventions. The direct spending by the meetings and convention industry in 2012 has been around $280 billion (Convention Industry Council, 2013). The economic pie and the large share of that are sought by every city that the attendees provide. The meetings and convention industry in United States has bigger share in the country’s GDP than motion picture, air travel, sports industry, performing arts and sound recording (Meeting Planners International, 2014).
The economic impact is not only felt at a local level, but has also influenced the federal level. The impact has been pervading with tax revenues that is made of from the attendees money spending. The tax leveraging has been done by local, state and federal level. The tax revenue in 2012 by the government made from the meetings and conventions alone had been $14.8 billion and $13.2 billion respectively (Meeting Planners International, 2014). This is the reason why the funding in abundance flows to the local conventions and visitors’ bureaus in order for them to attract more meetings and conventions for getting their share of tax revenues.