HongKong-the TradeFair
Capitalof Asia
{
I
HongKongispossibly
themostinternational
commercial
centreinAsia,whichhasdeveloped
a melting
pointof cultures
and ideas.Themetropolis'
tradefair industry
hasundergone
a changein recent
y e a r sT. h en u mb eor f e xh i b i ti nco
g mpanies
in HongKongiscontinuing
to r ise;andthe n um berof
Mainland
visitors
especially
andcompanies
attending
haveincreased
explosively.
pillarof
Trade
fairsareanessential
HongKong's
economy.
Theybring
b u s i n e sas n d p l a y e r st o H o n g
platform.
Kong's
service
Especially
for the smallandmediumsized
c o m p a n i e(sS M E s t)r a d ef a i r s
a r e a n i m p o r t a n tp l a t f o r mt o
contacta greatnumberof serious
worldwide
buyersto assessable
costs,The tradefairs are very
e f f e c t i v ei n p r o m o t i n gH o n g
Kong'sleadingexportindustries,
According
to a surveycarriedout
by the HongKongExhibition
and
(HKECIA),
Association
Convention
39,5I7companies
displayed
their
products
or services
at HongKong exhibitions
in 2004,
whichis almostonethirdmorethanin 2002.Totalvisitor
numbers
in 2004increased
bv 29o/o
to almost3,6million,
compared
to the yearearlier.
Trade fair history in Hong Kong
Themodernhistoryof tradefairsin HongKongis young.
Regularexhibitions
in the city startedin 1983,when
ChinaResources
opened
the HongKongExhibition
Centre.
Alreadyby the mid 1970s,moreand moretradefairs
were beingstagedin HongKong,but undernomadic
existence.
Sincetherewas no purpose-built
exhibition
place
facility,
thefairstook
in hotellobbies,
sportstadiums
or parks.Withthe fastgrowthof China,the exhibition
industry
developed
rapidly.
In the 1980smoreandmore
international
companies
cameto HongKong,whichat
that time primarily
servedas an international
turntable
andgateway
to China,
TheHongKongConvention
andExhibition
Centre(HKCEC)
opened
itsfacein 1988.It wasAsia'slargeststeelbuilding
andan innovation
in theworldof exhibition
facilities.
The
primelandonthe
HongKonggovernment
haddesignated
Wanchai
waterfront
for sucha facilitv,
Thenewfairqround
,
l4
lGc.comm
provided
a boostto exhibitions
in HongKong,
Throughout
the 1990'sthe industrygrew strongly,and the centre
operatedcloseto capacityso that a largerfacilitywas
needed.
In 1994,theGovernment
entrusted
theHongKong
(HKTDC)
TradeDevelopment
Council
withHK$4.8billion
to builda majorextension
on reclaimed
landin frontof
theexisting
centre.
Manynewandparticularly
largerfairs
couldbehostedonthegrounds.
Thehandover
ceremonies
in 1997werecelebrated
at a double-space
capacity
of
46,296sqm,two weeksafterthe HKCEC's
extension
was
finishedin mid-June.
Untiltodaythe HKCEC
continues
to recorda constantgrowthin spaceutilization,
with an
average
increase
of 10%annually.
Hong Kong still a hotspot for trade fairs
The trend of the 80's, usingtradefairs in HongKong
primarilyas a step into China,is over.Today,most
promotetheir productsdirectly
international
companies
in China,but the industrygrewso stronglywithinthe
lastfew yearsthat the Chinese
fairsare no competition
to HongKong.
The structureof the Chineseand HongKongtradefair
marketis very different.In China,the typicaleventis
I lssuelll 2005
I
I
I
I
p r i m a r i l yf o c u s e do n d o m e s t i cb u s i n e s sw, i t h
o b v i o u se x c e o t i o n
t o t h e C a n t o nF a i r ,I n t h e
Mainland
manyhugetechnology
andmachinery
fairs
are hosted,dueto the proximityto the factories,
whilein HongKongtherearemoreunique
fairs,like
largeconsumer
merchandise
fairsfor international
Thehugetechnology
fairsdo nottakeplace
buyers.
in HongKongat the moment,andPaulWoodward,
for theAsia/Pacific
Manager
chapter
of TheGlobal
Association
Industry(UFI)expects
of theExhibition
fairsto remainin China,"It is nota
thetechnology
sizeissue.
AsiaWorldExpowouldbebigenough,
but
in Chinathefactories
arecloseandDongguan
and
for theseindustries."
Guangzhou
areestablished
China buyers
ffi
&
O BusinessStrategiesGrcup Ltd. 2OO4
In Chinasomanytradefairshavespread
outof the
groundthatinternational
buyersoftendo notknow
if the fair is worththe travel.Woodward
doesnot regard
themultiple
fairsasa problembutthefactthatallof them
international.
can callthemselves
A cautious
tradefair
is essential
in China.sincethetitle"international
selection
guarantee
fair"doesnotautomatically
internationaI
buyers
qualitystandards
or visitors,
Therefore
theUFIhasdefined
for their membercompanies,
international
visitorsor
exhibitors
canrelyon.Information
is alsoavailable
at the
localChambers
of Commerce.
Rush of Mainland visitors
In HongKongthereis a growingbuyingpowerof Chinese
Over128,000attended
consumers.
exhibitions
in Hong
Kongin 2004,whichisa 500/o
increase
compared
to 2002.
StanleyChu,Chairman
of the HongKongExhibition
&
(HKECIA)
"Therisein
Association
Convention
comments
Mainland
visitornumbers
showshowkeenthesevisitors
herein HongKongif we makeit easy
areto do business
forthem,OurMainland
visitors
thesedayscomewithvery
powe4andas theirnumbersgrowwe
strongpurchasing
areseeingthe riseof a powerful
newforcein HongKong's
China exhibitors
"lllllll
O BusinessStrategiesGroupLtd. 2004
l.www hongkong.a hk.de / www.ch in a.ahk.de
An advantage
exhibition
environment."
for HongKongis
thegoodvisitorprofile,In theMainland,
it is neverdifficult
to get enoughvisitors,but the quality,whichis the most
importantfactor,mightbe low-grade,
sincemanypeople
arejust passing
byto havea lookat the boots.In contrast
visitorcomingto a HongKongfair has
to that,a Chinese
alreadytakeneffortandmoneyto getthere,whichgives
a higherchangethat he will be a potentialbuyer.These
expenditures
entaila quality
threshold
of mainland
buyers
i n H o n gK o n g S
. t a n l e yC h up o i n t so u t t h a t " M a i n l a n d
c o m p a n i eesx h i b i t i nign H o n gK o n gt e n dt o b e o f a n
extremely
highstandard,
because
HongKongexhibitsact
almostasa 'qualitycontrol'
mechanism."
Expanding venue space
Theindustryhasrealised
for a longtimethat HongKong
needsmoreexhibition
Notonly
spaceto staycompetitive.
theHongKongConvention
andExhibition
Centre
madean
application
for expansion,
butalsoa newhugeexhibition
facilityis currentlyunderconstruction,
The AsiaWorld
Expo,The new location
is openingup someinteresting
opportunities
for the HongKongtradefairindustry.
Thescheduled
opening
oftheeventvenue,located
next
to the HongKongInternational
Airport,is December
2005,It will offer over 70,000squaremetresof
rentable
spacefortradefairs,conventions,
concerts
or
otherenteftainment
events.Witha budgetof HK$2.35
private
partnership
billion,
AsiaWorldExpoisa publicinvolving
funding
fromtheHongKongSARGovernment
andtheprivatesectorconsortium
including
HongKong
limitedand Yu MingInvestments
Limited,with the
AirportAuthority
contributing
land.
Recent number of fairs static
F o rh a l fa y e a ; t h e e x h i b i t i ocna l e n d aor f H K C E C
i sv e r y
I lssuelll 2005
| 5
t
Outlook
The exhibition
industryin HongKonghas many
reasons
for optimism,
visitorandexhibitor
numbers
are continuing
to rise,and the HKECIA
survey
underpinsHongKong'sreputationas the "Trade
fair capitalof Asia".HongKongis popular
for its
quality,
its
exhibition
easeof doingbusiness,
and
position.
its strategic
favourable
Recenthistory:numberof
fairs static...
$ :
! i
: a o !
-i
tl ll
T h e H o n g K o n gt r a d e f a i r s a r e a l r e a d yv e r y
i n t e r c o n t i n e n tw
a il t h o v e r 6 0 0 / oi n t e r n a t i o n a l
visitors,whichis 200/omor€than on the big German
fairs for example.Comparedto other Asiancities,
rom2m3
Source: HKECIA/BSG
O Business Strategies Group Ltd. 2004
,.
_,l
full.Especially
thespringandautumnseason
isverybusy
in HongKong,andmanyexhibitors
wouldliketo attend
morefairsin thecitybutdo nothavetheopportunity,
This
leadsto a staticnumberof tradefairsin recenthistory,
Takingthis activedemandinto consideration,
the Asia
WorldExpois likelyto be verysuccessful
duringthe fairs
oeakseasons.
AsiaWorldExpoannounces
thatit couldalready
establish
futurecalendar
anattractive
of events,
withover25events
securedfor 2006.The ITU Telecom
World2006,
the GlobalSources
ChinaSourcing
Fairs,andother
exhibitions,
will contributean estimated
confirmed
in AsiaWorld
$4 billionto the HongKongeconomy
Expo'sfirstyearof operation
in 2006.
U f i M a n a g ePr a u lW o o d w a rbde l i e v e tsh a t t h e
additional
spacecanfurthermore
be an opportunity
for the tradefairindustry
to launchmoreconsumer
events,whicharenottradefairsin theoriglnal
sense,
more
interactive.
In
his
but
opinion,
the consumer
eventswillattractlargenumbers
of peopleandhave
whichis not usedat the moment
a hugepotential,
of venuespace,At consumer
due to the shortage
events,
companies
canpresent
theirarticles
directly
possibility
user-whichis an excellent
to theultimate
promotion,
games
through
to alluremorebuyers
and
Woodward
free-bees.
seestheconsumer
eventsasa
whichcanelatemoreentertainmentnewattraction,
seekingtourists,especially
from the Mainland
to
HongKong.Besides
Disneyland
or the OceanPark,
HongKongneedsmoreattractions
for coming-back
eventsin thesummerpeak,Woodward
continues.
In
thisaspect,
Macau
willlikelydevelop
its importance
andbecome
a tremendous
competition
in thefieldof
for China.
convention
business
,
16
l GCcomm
H o n gK o n gh a ss t i l lt h e a d v a n t a g e
o f i t sf a v o u r a b l e
g e o g r a p h i cp o s i t i o na n d a s t r o n g g o v e r n m e n t a l
s u p p o r t .r B I H
This article does not necessarilyreflect the view of
GIC/GCC.Sources of this article are: PaulWoodward,
ManagerAsia/Paciftc
of The GlobalAssociationof the
ExhibitionIndustry (UFI) and Principalof the Business
StrategiesGroup(BSG),TheHongKongTradeDevelopment
Council(TDC),The Hong KongExhibition&Convention
Industry Association(HKECIA),Asia World- Expo
Management
Limited,FiduciaManagement
Consultants
{
--_'\_.\
I lssue lll 2005