Inaugural Hong Kong International Wine Expo to Open August 2008
Hong Kong is poised to develop its wine trading business after the abolishment of duties on wine, beer and all alcoholic beverages, with the exception of spirits, as announced by Financial Secretary John Tsang in his recent budget speech.
To promote Hong Kong as Asia's wine trading, distribution and investment center, the Hong Kong Trade Development Council (TDC) is organizing the first Hong Kong International Wine Expo in August, which is one of a series of events under the Food and Health framework.
The TDC carried out research to study Hong Kong's potential as a wine trading and distribution center in Asia. The research report was submitted to relevant Hong Kong government authorities at the end of 2007.
According to the report, Asia's wine market is expected to grow 10 percent to 20 percent per annum over the next five years with the Mainland of China, Hong Kong, Taiwan, Singapore and Korea leading the charge.
The consumption value in Asia (excluding Japan) is expected to double, reaching US$17 billion in 2012 and jumping to US$27 billion in 2017.
The Mainland of China is expected to be the key driving force for Asia's growth. By 2017, it is expected that Mainland China alone will import US$900 million worth of wine which tops all other Asian countries.
Meanwhile, Asia's wine investment market is seen to have tremendous growth potential. This includes wine futures trading, wine investment funds offered by private banks and wine auctions.
Currently, wine investment markets are making a big splash in global financial centers like New York and London. It is projected that demand for wine investment by Asian investors will amount to US$500 million by 2012 and US$1 billion by 2017.
"Hong Kong's growing wine culture coupled with a well-established financial system, free flow of capital and information and its reputation as the world's freest economy are all favorable factors for developing Hong Kong's wine trading business," said Edward Leung, TDC's Chief Economist.
To further develop Hong Kong as a wine trading and distribution center, the report made the following recommendations:
* Strengthen wine education and professional training
* Step-up marketing efforts by organizing wine trade fairs, attracting wine merchants to participate. This would enhance Hong Kong's reputation as a wine trading center
* Develop wine investment tools
* Abolish wine duty to reduce administrative and storage costs. This would encourage overseas wine merchants to choose Hong Kong as their base for wine distribution, storage, re-export and auction.
"If Hong Kong does develop into a regional wine trading and distribution center, it will bring massive economic benefits far more than HK$1 billion [US$128 million] by 2012 and close to HK$3 billion [US$385 million] by 2017, creating thousands of new jobs," said Mr. Leung.
To encourage Hong Kong companies to seize the business opportunities arising from the exemption of wine duty, the TDC will organize the first Hong Kong International Wine Expo at the Hong Kong Convention and Exhibition Centre, from August 14 to 16.
TDC's Assistant Executive Director, Raymond Yip said: "Wine has been one of the many product categories exhibited at the annual Food Expo. Now, the time is ripe to organize a solo fair on wine products, to be held concurrently with the Food Expo."
"The Food Expo attracted many buyers from across the globe over the years. We are confident that they will also visit the first Hong Kong International Wine Expo and conduct business talks with quality wine dealers who are keen to reach the fast-growing Asian market," Mr. Yip continued.
The expo will host wine dealers, cellars, producers and suppliers of related services from Hong Kong, Asia and the rest of the world. Exhibit categories will include liquor and beverage products, equipment and services required for wine production, and wine accessories.
"By organizing the expo, we hope to create a one-stop platform for exhibitors and buyers to meet and explore business opportunities in the booming markets of Asia and the Chinese Mainland," added Mr. Yip.
About the TDC
Established in 1966, the Hong Kong Trade Development Council (TDC) is the international marketing arm for Hong Kong-based traders, manufacturers and service providers. With more than 40 offices worldwide, including 11 in the Mainland of China, the TDC promotes Hong Kong as a platform for doing business with China and Asia.
The TDC also organizes trade fairs and business missions to connect companies with opportunities in Hong Kong and the Mainland, while providing information via trade publications, research reports and online.
Financial Secretary's 2008-2009 Budget: http://www.budget.gov.hk/
Hong Kong Trade Development Council: www.tdctrade.com
Hong Kong International Wine Expo: http://www.hkwineexpo.com/
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