Hong Kong Circle: Hong Kong Economic and Trade Office in Washington D.C. Newsletter

Momentum Builds at Asia's Top Trade Fair Hub

Buyers flock to the Hong Kong Convention and Exhibition Centre for Asia's largest, and the world's second largest, electronics show

Hong Kong's dynamic exhibition and trade fair sector looks set for another strong year in 2007, industry insiders say.

The opening of the city's second major venue, AsiaWorld-Expo, removed an infrastructure bottleneck and brought about 20 new events to Hong Kong in 2006, commented Paul Woodward, Regional Manager of UFI, the global association for the exhibition industry.

"When you add it all up - the existing events and the new ones at the AsiaWorld-Expo - we've had a good year," said Mr. Woodward.

He reported that the industry recorded substantial growth of about 25 percent in 2006 in terms of exhibition space sold.

AsiaWorld-Expo, adjacent to the Hong Kong International Airport, adds a new dimension to an industry already well-served by the city's signature downtown venue, the Hong Kong Convention and Exhibition Centre (HKCEC).

One of the year's highlights was the staging of the ITU Telecom World, which was held in Hong Kong for the first time. The event, which drew 62,000 visitors from 141 countries, was the biggest trade exhibition ever held in Hong Kong.

"This success proves Hong Kong is capable of holding such a large-scale international event," said Allan Ha, Deputy Chief Executive of Asia World-Expo, the host venue.

Mr. Ha expects the industry's rapid expansion to continue in 2007, underpinned by Mainland China's surging growth and increasing links to international trade. He said most events held at AsiaWorld-Expo will return in 2007, such as the China Sourcing Fairs.

A highlight of 2007 will be the annual Asian Aerospace International Expo and Congress in September, which is moving permanently to Hong Kong from Singapore.

According to 2005 data, the latest data available, Hong Kong continues to be the leading venue for exhibitions in Asia, excluding Japan.

A record 41,599 companies took part in Hong Kong shows in 2005, up 59 percent from the 26,097 in 2000, according to Hong Kong Exhibition and Convention Industry Association (HKECIA) figures.

Shows from Mainland China are on the rise, up from just 2,000 in the year 2000 to 7,266 in 2005.

The Hong Kong Trade Development Council (TDC), which organizes some of the city's biggest trade fairs, reports a 15 percent rise of exhibitors at its shows, and a 23 percent rise in visitors (totaling 25,217 exhibitors and 538,000 visitors).

Benjamin Chau, TDC's Assistant Executive Director, said its exhibitions had grown larger in scale and breadth, with new fairs covering industries such as printing and packaging, auto parts, furniture and construction.

Among TDC's initiatives to keep growth rolling are a US$180 million extension to HKCEC, due to be completed in 2009, and a new global promotion campaign to raise the profile of TDC's trade shows.

Among the visitors, trade fair organizers report strong growth in buyers from Mainland China. Hong Kong's quality image is also attracting buyers looking to source the best possible goods for their needs.

Hong Kong's trade shows are playing an increasingly important role in facilitating business ties between low-cost Chinese producers and Western buyers looking to outsource the manufacture of their product lines.

The exhibitions industry plays an important role in Hong Kong's economy. A KPMG survey found that in 2004 the industry added US$2.4 billion to Hong Kong's economy that year – about half directly through spending by exhibitors, organizers and visitors. The other half comes indirectly via suppliers to the industry of goods and services.

The industry is estimated to have contributed about 1.5 percent of Hong Kong's gross domestic product (as against 1 percent in Germany and 0.8 percent in the UK); created 47,000 jobs; and generated US$91 million in tax revenues for the Hong Kong government.

Hong Kong's prominence on the trade fair world stage should be further enhanced by the appointment of Cliff Wallace, Managing Director of HKCEC, as Global President of UFI.

"Cliff Wallace's election as incoming president is a clear indication the UFI well understands the leading role that Hong Kong plays in the rapidly expanding Asia-Pacific exhibition industry," said Fred Lam, Executive Director of the TDC.

Hong Kong Convention and Exhibition Centre: http://www.hkcec.com/

AsiaWorld-Expo: http://www.asiaworld-expo.com/

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