We get this question a lot lately, how is Galveston? Well there is good news and not-so-good news. Most tourist spots are up and running. Hotel Galvez opened their doors on October 31, 2008, but unfortunately lost their new spa :( But they will re-build it.
On the Harbor side, Willie G's Steak House opened back up on December 4, 2008. The main streets are cleaned up, with small piles of debris. The seawall area is beautiful, the sand is clean and the water looks blue (not kidding, blue)!
Once you venture to the residential areas, it does get a little sadder, there is still some major work to be done.
So in sort, if you are holding an event in Galveston, continue to do so. Te event areas are all cleaned up, and your event will help the economy in Galveston so that the whole Island can be rebuilt.