Hong Kong Industry Profiles

Overview

• Being the world's 10th largest trading economy, Hong Kong has developed into a premier convention and exhibition centre in the region. As a free port with superb air connectivity at the heart of Asia, exhibits, exhibitors and visitors can move into Hong Kong conveniently, making the territory a preferred location in staging international conventions and exhibitions.
• Hong Kong was crowned as the “Best Business City in the World” at the 2011 Business Traveller Asia-Pacific Travel Awards. Further, Hong Kong was named the “Best City for MICE Events” in the CEI Asia Industry Awards 2012 organised by CEI Asia magazine, a prominent MICE publication. In 2011, Hong Kong hosted five of the world's largest trade exhibitions and seven of Asia's largest trade exhibitions.
• The main venues for MICE events are the Hong Kong Convention and Exhibition Centre (HKCEC) in the main business district, the AsiaWorld-Expo (AWE) near the airport and the Hong Kong International Trade and Exhibition Centre in Kowloon Bay. CEI Asia magazine has listed HKCEC and AWE among the top three venues in Asia, a powerful testament to Hong Kong’s status as a world-class MICE destination.
• HKCEC completed its second expansion project in April 2009, increasing its exhibition space by 42% to 66,000 sqm. In addition, the Hong Kong government announced in February 2012 that it was considering the 3rd HKCEC expansion project. On the other hand, AWE expanded its conference and event venue capacity by establishing its “Runway 11” in 2010.
• The Hong Kong Tourism Board (HKTB) launched a “Meetings & Exhibitions Hong Kong” office (MEHK) in November 2008 to offer one-stop professional support to MICE organisers choosing Hong Kong as a destination for meetings and exhibitions. As a recognition of MEHK’s quality services, it has been ranked as the second place for the “Best Convention Bureau” award organised by CEI Asia magazine.
• Under CEPA, Hong Kong service suppliers (HKSS) are allowed to organise exhibitions in the form of cross-border supply on a pilot basis in Guangdong, Shanghai, Beijing, Tianjin, Chongqing and Zhejiang.

Industry Data

Overnight MICE Arrivals by Country/Region in 2011

Source: Meetings & Exhibitions Hong Kong

Hong Kong’s Overnight Visitors

Source: Hong Kong Tourism Board

Recent Development

More than 50 venues in various sizes are available in Hong Kong for exhibitions and conventions, with the HKCEC in the city centre and AWE near the Hong Kong International Airport (HKIA) being two of the largest venues. Total available exhibition space in Hong Kong now exceeds 150,000 sqm. In 2011, Hong Kong hosted more than 110 exhibitions, with more than 1.5 million overseas overnight MICE visitors.

Hong Kong has received worldwide recognition as one of the best destinations for MICE and business travellers. In 2011, Hong Kong was named as the “Best Business City in the World” at the 2011 Business Traveller Asia-Pacific Travel Awards. Hong Kong ranked first in the Best MICE City Award organised by CEI Asia magazine.

With the tight supply of exhibition spaces at HKCEC and AWE during peak seasons, the Hong Kong government is currently examining the feasibility of HKCEC Phase 3 expansion. In November 2011, the Legislative Council Panel on Commerce and Industry noted that the government was discussing with the AWE developer to carry out the AWE Phase 2 expansion as soon as possible. AWE Phase 2 expansion, if carried out, will expand AWE’s exhibition area from 66,000 m2 to 100,000 m2.

In November 2008, the Hong Kong Tourism Board (HKTB) launched MEHK to offer one-stop professional support to MICE organisers choosing Hong Kong as a destination for meetings and exhibitions. Such services include publicity, visitor promotion, coordination of site inspection, facilitation in securing local dignitary as officiating guest and liaison with government departments. As a recognition of MEHK’s quality services, it has been ranked as the second place for the “Best Convention Bureau” award organised by CEI Asia Pacific magazine.

Service Providers

A wide variety of service companies are involved in the convention and exhibition industry, including event organisers, stand constructors, insurance companies, freight forwarders, travel agents and hotels. However, the central role played by event organisers in bringing together all these services makes them the most important industry service providers.

Exhibitions are broadly divided into two kinds: trade fairs and consumer fairs. The former targets buyers in specific industries operating largely on a B-to-B basis, while the latter is open to the public, thereby targeting primarily the local market. Well recognized as a regional trade hub, Hong Kong succeeds in attracting a lot of overseas exhibitors and buyers to attend the city’s trade shows, with attendees able to enjoy an international exposure within the show.

Some exhibition organisers also provide a one-stop-shop solution by organising, additionally, conferences and seminars, also bundling other side events to supplement the exhibitions. The main function of the supplementary events is to provide a holistic platform for the participants to have an exchange on recent industry developments and market information.

Currently there are over 100 exhibition service providers offering specialised or integrated exhibition services. Some of the major international event organisers set up their regional headquarters in Hong Kong, which look after events organised in Hong Kong and on the Chinese mainland. In general, the larger international organisations have a wide variety of shows whereas the smaller organisers tend to specialise in organising similar shows in different locations.

Apart from activities organised in the territory, Hong Kong's convention and exhibition organisers are also active in arranging their exhibitors to exhibit overseas. While the Chinese mainland is a priority, organisers are also actively looking for locations to organise their trade and exhibition events. Locations include not only those in developed markets, but also developing markets like the Middle East and Eastern Europe.

In coping with the continual increase in inbound tourists, Hong Kong has seen a parallel growth in hotel room supply. As at January 2012, there were 192 hotels offering 63,359 rooms at different price levels compared with only 101 hotels and 39,128 rooms in 2004, increasing by 90% and 62% respectively over the eight years. In the 2012-13 Budget Speech, the Financial Secretary estimated that the number of hotels and hotel rooms would increase to 240 and 71,000 respectively by 2016.

Hotels in Hong Kong, as at January 2012

Source: Hong Kong Tourism Board

Exports of Services

A main source of export income from the convention and exhibition industry is the spending by overseas participants to events held in Hong Kong.

According to the latest available figures from the Economic Impact Study commissioned by the Hong Kong Exhibition & Convention Industry Association (HKECIA), the exhibition industry contributed HK$35.8 billion (US$4.6 billion) to Hong Kong's economy in 2010 (equivalent to 2.1% of Hong Kong’s GDP), up 19% from 2008. Of this amount, HK$9.8 billion (US$1.3 billion) came from visitor expenditure contributed by exhibition visitors, and HK$8.1 billion (US$1.0 billion) from spending by exhibition organisers and exhibitors (both local and overseas). In 2010, the number of exhibiting companies showcasing in Hong Kong rose 2% to 56,800, in which 20,000 exhibitors were from the Chinese mainland.

The exhibition industry's activities during 2010 were estimated to have provided an employment equivalent to 69,150 full-time jobs across a number of related industries, up 13.4% from 61,000 in 2008. Sectors benefiting the most were food & beverage, retail and hotel, taking up an estimated 59% of the employment created. The remaining 41% went to various sectors including stand construction, advertising, logistics, freight forwarding and venue and exhibition organisers.

Closer Economic Partnership Arrangement between Hong Kong and the Mainland (CEPA)

The Closer Economic Partnership Arrangement (CEPA), an agreement signed between Hong Kong and the Chinese mainland to facilitate trade in goods and services, allows Hong Kong convention and exhibition service suppliers to provide, in the form of wholly-owned operations, convention services and exhibition services on the mainland from 1 January 2004. Those operations set up by Hong Kong service suppliers (HKSS) on the mainland under CEPA can also undertake relevant businesses in Hong Kong and Macau.

Under CEPA, HKSS are allowed to organise exhibitions, in the form of cross-border supply, in Guangdong, Shanghai, Beijing, Tianjin, Chongqing, Zhejiang, Jiangsu and Fujian on a pilot basis. Companies set up by HKSS are allowed to organise overseas exhibitions on a pilot basis for locally-registered enterprises in Guangdong, Shanghai, Beijing, Tianjin, Chongqing, Zhejiang, Guangxi, Hunan, Hainan, Fujian, Jiangxi, Yunnan, Guizhou and Sichuan.

From October 2009, Guangdong Province is entrusted with the authority to approve applications of HKSS in organising foreign economic and technical exhibitions with an exhibition area exceeding 1,000 sqm within the province.