Hong Kong's dynamic exhibition and trade fair sector looks set for another strong year in 2007 after its quantum leap in 2006, 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, said 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," he said.
"The industry recorded very substantial growth of about 25 per cent in 2006 in terms of exhibition space sold. We can now cater for previously unmet demand because of constraints of space during the peak spring and autumn seasons."
AsiaWorld-Expo, located by Hong Kong International Airport, adds a new dimension to an industry already well served by the city's signature downtown building, the Hong Kong Convention and Exhibition Centre (HKCEC).
Peace and prosperity
Michael Duck, Senior Vice-President of trade fair organiser CMP Asia, said 2006 had ended on an upbeat note. "It has been a year of peace and prosperity and continued growth. Hong Kong has been able to play a good hub role for the region.
"Most of the shows have had a larger number of exhibitors. For 2007, we will continue to see growth."
One of the year's highlights was the staging of the ITU Telecom World - known as the Olympics of the telecommunications industry - 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 year's industry rapid expansion to continue, underpinned by the Chinese's economy'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 in April and October, with more exhibitors and buyers.
Leading venue
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 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 per cent from the 26,097 in 2000, according to Hong Kong Exhibition and Convention Industry Association (HKECIA) figures. Shows from the Chinese mainland are on the rise, up from just 2,000 in the year 2000 to 7,266 in 2005.
Hong Kong Trade Development Council (TDC), which organises some of the city's biggest trade fairs, reports a 15 per cent rise of exhibitors at its shows, and a 23 per cent rise in visitors (totalling 25,217 exhibitors and 538,000 visitors).
Benjamin Chau, TDC's Assistant Executive Director, said its exhibitions have grown larger in scale and also breadth, with new fairs covering industries such as printing and packaging, auto parts, furniture and construction.
Among the TDC's initiatives to keep the growth bandwagon rolling are a HK$1.4 billion (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.
Quality image
Among the visitors, trade fair organisers report a strong growth in buyers from the Chinese mainland. Hong Kong's quality image is also attracting buyers looking to source the best possible goods for their needs. "People think better quality companies are coming to Hong Kong," said UFI's Mr Woodward.
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. CMG's Mr Duck says Chinese manufacturers "are becoming more adept at meeting the needs of customers in terms of quality."
The exhibitions industry plays an important role in Hong Kong's economy. A KPMG survey found that in 2004 the industry added HK$19 billion (US$2.4 billion) to Hong Kong's economy that year, about half directly through spending by exhibitors, organisers 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 per cent of Hong Kong's gross domestic product (as against 1 per cent in Germany and 0.8 per cent in the UK); created 47,000 jobs; and generated HK$710 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.
Related links
Hong Kong Convention and Exhibition Centre
AsiaWorld-Expo
