Hong Kong Convention & Exhibition News

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Climate change report may be released in HK
Cheung Chi-fai
21 September 2006
South China Morning Post

The Intergovernmental Panel on Climate Change may launch its latest report on the issue in Hong Kong next year during an international conference staged for engineering groups.

The International Conference on Climate Change will be held for three days from May 29.

Co-organised by the Hong Kong Institution of Engineers and three other professional engineering bodies, the conference will be the biggest gathering on climate change to be held in the city.

The gathering also is being supported by the World Meteorological Organisation and the European Commission's office in Hong Kong.

A source close to the organiser said the panel, operating under the UN, was considering using the conference to launch part of its fourth assessment report on climate change. The panel issued its third report five years ago.

The source also said political leaders from the European Union might join the conference.

The organisers are now calling for papers to be presented at the gathering.

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LCQ14: Convention and exhibition industry in Hong Kong
Wednesday, December 13, 2006
Government Press Release

Following is a question by the Hon Wong Ting-kwong and a written reply by the Secretary for Commerce, Industry and Technology, Mr Joseph W P Wong, in the Legislative Council today (December 13):

Question:

Will the Government inform this Council:

(a) whether it monitors the operation and quality (such as the criteria for selecting exhibitors) of international exhibitions held by the private sector in Hong Kong; if so, of the details; if not, the reasons for that; and

(b) of the assistance, provided by the relevant authorities, to local exhibitors to help them compete with their overseas counterparts for opportunities to participate in international exhibitions held in Hong Kong to promote their products and services?

Reply:

Madam President,

The Government is committed to develop Hong Kong as the trade fair capital and international trading centre for the Asia-Pacific region. At the same time, the convention and exhibition industry is also important for maintaining Hong Kong's position as a business hub. In this connection, the Government has invested strategically in the industry's infrastructures to provide convention and exhibition facilities of a high quality. In addition, Hong Kong's free and convenient business environment provides excellent conditions for large scale international exhibitions, and their exhibitors and buyers. Reply to the two parts of the question is set out below:

(a) The two major exhibition venues in Hong Kong, namely the Hong Kong Convention and Exhibition Centre and the AsiaWorld-Expo, are run respectively by independent management companies. The two management companies operate the venues and formulate their booking and licensing procedures following prudent commercial principles and market practices. As regards the exhibition organisers, they generally select exhibitors on a commercial and competitive basis taking into account their business consideration as well as market demand and supply. We believe that this should bring the most benefits in terms of increasing the flexibility and economic efficiency in the use of Hong Kong's convention and exhibition facilities. It is not appropriate for the Government nor the venue operators to intervene with individual exhibition organisers' business decisions on the types of exhibitions to be hosted and the selection of exhibitors as long as they comply with the applicable laws of Hong Kong and the relevant rules on the safe and proper use of the venues set by the venue operators, and do not engage in any anti-competitive behaviour.

(b) The Government has been providing support to local exhibitors through the Hong Kong Trade Development Council (TDC) and the Trade and Industry Department (TID). For example, TDC, as one of the major exhibition organisers in Hong Kong, organises trade fairs for a wide range of Hong Kong industries on a regular basis and encourages local enterprises to participate. In addition, TDC's general practice is to provide local enterprises participating in its international trade fairs with prominent positions as far as possible. The majority of exhibitors participating in TDC's international trade fairs are local enterprises, and many of them are small and medium enterprises (SMEs) who lack the resources to participate at overseas trade exhibitions to promote their products and services to overseas buyers.

TID operates the SME Export Marketing Fund, which provides funding support to SMEs for their participation in local trade fairs and exhibitions which are export-oriented, overseas trade fairs and exhibitions and study missions. As at November 30, 2006, the cumulative amount of the SME Export Marketing Fund approved is about $680 million, benefiting up to 17,000 local SMEs.

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LCQ1: Promoting Hong Kong's advantages as a convention and exhibition capital
January 10, 2007
Government Press Release

Following is a Question by the Hon Andrew Leung and a reply by the Secretary for Commerce, Industry and Technology, Mr Joseph WP Wong, at the Legislative Council meeting today (January 10):

Question

The International Telecommunication Union TELECOM WORLD 2006, recently concluded in Hong Kong, was the first TELECOM WORLD ever held in a city other than Geneva. In this connection, will the Government inform this Council:

(a) of the tangible and intangible economic benefits that this event has brought to such industries as telecommunications, convention and exhibition, hotel, tourism, catering and retail etc.; and

(b) as many cities in the region are vigorously developing markets for their convention and exhibition industries, whether the Government will introduce measures after this event to enhance Hong Kong's status as a major international convention and exhibition centre in the region?

Reply:

Madam President,

The ITU TELECOM WORLD, the famed "Olympics of the telecommunications industry”, was held in Hong Kong from 4 to 8 December 2006. This was the first ITU TELECOM WORLD ever held outside Geneva, as well as the largest exhibition cum forum ever held in Hong Kong. The event drew worldwide attention.

According to the statistics provided by the organiser, namely the International Telecommunication Union, 695 exhibitors from 37 countries participated in the ITU TELECOM WORLD. The exhibition cum forum took up a total area of 70 000 square metres, or the entire floor space of the AsiaWorld-Expo (AWE). Some 62 000 participants from 141 countries attended the exhibition or the forum.

Regarding the first part of the Question, the successful hosting of the ITU TELECOM WORLD has significantly enhanced Hong Kong’s status internationally and greatly benefited our information and communications technology (ICT) industry, exhibition industry and other economic sectors.

First, the Government played a key role in coordinating and promoting ITU TELECOM WORLD and rendered support in such areas as traffic management, security and crowd control. Relevant sectors also facilitated on matters relating to logistics, accommodation and exhibition facilities, etc. The seamless arrangements were unanimously appreciated by the participants, fully demonstrating Hong Kong’s capability to host mega international exhibitions and conventions. This has also reinforced Hong Kong’s position as the world’s events capital and underlined Hong Kong’s unique role as a telecommunications hub in the region.

ITU TELECOM WORLD has demonstrated Hong Kong’s pivotal role in accessing the Mainland market for overseas companies. During the exhibition, the Government arranged a series of activities to help overseas enterprises deepen their understanding of the Mainland market. At the same time, the event attracted participation from about 150 Mainland exhibitors and provided an effective platform for Mainland enterprises of various sizes to keep themselves abreast of the state-of-the-art technologies and latest business intelligence. Such knowledge will be conducive for their future expansion or entry into the global market.

The local ICT sector also made good use of the platform provided by the ITU TELECOM WORLD to network with enterprises from all over the world and to gain first-hand information about leading-edge technologies, business operation and promotion strategies. They took the opportunity to showcase their excellence to overseas enterprises, attract foreign investment and expand business opportunities. Some 80 local ICT companies, including many small and medium enterprises, participated in the exhibition.

Furthermore, the Government took the opportunity to hold bilateral meetings with ministers of overseas governments during the ITU TELECOM WORLD to share information about the latest developments in the telecommunications sector and strengthen mutual cooperation. The Government and the ICT sector also actively participated in the forum to exchange views on telecommunications policies and developments.

Apart from the aforementioned intangible benefits, the ITU TELECOM WORLD has also brought significant direct economic benefits of about $900 million to Hong Kong. That included expenses incurred by exhibitors for constructing exhibition booths and conducting promotion programmes, as well as exhibitors’ and visitors’ spending on accommodation, catering, sight-seeing and shopping. Moreover, during the exhibition period, the venue operator and its contractors created over 1 000 temporary job opportunities in the exhibition centre. Hotel occupancy rate was over 90%.

Regarding the second part of the Question, the success of both the Sixth Ministerial Conference of the World Trade Organisation held in Hong Kong in 2005 and the ITU TELECOM WORLD reflects clearly the Government’s policy in furthering the development of Hong Kong as an international exhibition and convention centre. The Government has been closely monitoring demand for exhibition infrastructure and has taken appropriate measures in order to maintain Hong Kong’s position as an international exhibition and convention centre.

On infrastructure, the Government has invested $2 billion to develop the AWE. AWE is suitable for exhibitions for both light and heavy industries, e.g. ITU TELECOM WORLD 2006. Since its opening in end 2005, major exhibitors from Hong Kong, the Mainland, Europe and the United States have held over 40 events and activities at AWE, and over 90% of them were in Hong Kong for the first time. Our success in hosting the ITU TELECOM WORLD at AWE will further promote the development of AWE. We are actively liaising with AWE with a view to taking forward the early commencement of AWE Phase 2 project, thereby increasing its total exhibition space to 100 000 square metres.

We also strongly support the expansion of the Hong Kong Convention and Exhibition Centre (HKCEC). Back in 2005, the Government already rendered its support to the Hong Kong Trade Development Council (TDC)’s proposal of expanding the atrium link between HKCEC’s Phase 1 and Phase 2. It will add 19 400 square metres of exhibition space, boosting HKCEC’s total dedicated exhibition space by 42%. The expansion project is expected to be completed in 2009. We are actively pursuing with TDC the need for further expanding our exhibition facilities, including the development of HKCEC Phase 3 in Wanchai.

The Government will continue to work closely with the industry to attract more international conventions and exhibitions to Hong Kong. Relevant departments including InvestHK, our economic and trade offices, TDC and the Hong Kong Tourism Board etc. will further promote Hong Kong’s advantages as a convention and exhibition capital. Where necessary, the Government will also continue to assume a coordinating role for the large-scale international conventions in areas such as security, traffic management and reception so as to facilitate their smooth running.

Thank you, Madam President.

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LCQ11: Development of exhibition industry
Wednesday, January 24, 2007
Government Press Release

Following is a question by the Hon Wong Ting-kwong and a written reply by the Secretary for Commerce, Industry and Technology, Mr Joseph W P Wong, in the Legislative Council today (January 24):

Question:

While a number of international exhibitions were held in Hong Kong in recent years, places such as Singapore, Taiwan and Macao have been vigorously developing their exhibition industry at the same time. In this connection, will the Government inform this Council:

(a) whether it knows, in each of the past three years, the number of international exhibitions held in Hong Kong, the number of visitors, the number of orders brought to the exhibitors concerned, as well as the percentage of such exhibitions held in Hong Kong for the first time; and

(b) whether it has assessed the impact of the development of exhibition industry in the neighbouring regions on Hong Kong's exhibition industry?

Reply:

Madam President,

Our quality convention and exhibition venues, excellent supporting facilities and business friendly environment have attracted many international exhibitions to Hong Kong every year. Our reply to the two parts of the question is set out below:

(a) The number of international exhibitions held at the two major exhibition venues in Hong Kong, namely the Hong Kong Convention and Exhibition Centre (HKCEC) and the AsiaWorld-Expo (AWE), in the past three years, the number of visitors and the percentage of such exhibitions held in Hong Kong for the first time are set out below (see attachment):

The relevant parties have not collected statistics concerning the number of orders.

(b) We noted that the number of exhibition facilities in the neighbouring regions has been on the rise in recent years. In the face of the ever changing market trend and the new development of exhibition facilities in our vicinity, the Government has been strengthening our position as an international exhibition and convention centre by continuously enhancing Hong Kong's advantages and making strategic investments in convention and exhibition infrastructures to provide high quality facilities. In 2005, the Government rendered support to the Hong Kong Trade Development Council (TDC) on its proposal to expand the atrium link between HKCEC's Phase 1 and Phase 2. The expansion project will add 19,400 square metres of exhibition space, boosting HKCEC's total dedicated exhibition space by 42%, and is expected to be completed in 2009. We are actively pursuing with TDC the need for further expanding our exhibition facilities, including the development of HKCEC Phase 3 in Wanchai. We are also liaising with AWE with a view to an early commencement of the AWE Phase 2 expansion project, thereby increasing its total exhibition space to 100,000 square metres.

At the same time, the Government will continue to work closely with the industry to take proactive measures for attracting more international conventions and exhibitions to Hong Kong. Relevant departments including Invest Hong Kong, our economic and trade offices, TDC and the Hong Kong Tourism Board etc. will strive to promote Hong Kong's advantages as a convention and exhibition capital. Where necessary, the Government will also continue to assume a coordinating role for large-scale international conventions in areas such as security, traffic management and reception so as to facilitate their smooth running.

The Government will also enhance our liaison with relevant parties, including the industry, and adopt appropriate measures to reinforce Hong Kong's position as an international convention and exhibition centre.

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AsiaWorld-Expo eyes bigger things
Hong Kong Standard
Wednesday, February 21, 2007

Management at AsiaWorld-Expo sees great growth potential in the exhibition and conference market despite increased competition from new exhibition facilities around the region.

Commenting on the facility's first year of operation, AWE deputy chief executive officer Allen Ha said more than 90 percent of the events held at the AWE since opening in January 2006, are new to Hong Kong and are signed up as annual fixtures for the coming years.

The strong first-year result means that plans are now under way to add another 30,000 square meters of rentable space.

The Phase 2 development will involve adding ground-level, column-free exhibition halls along with additional meeting, conference and required supporting facilities.

Last year, five events occupied the entire 70,000 square meters of available space, with an overall average exhibition size of 18,500 sqm.

"We are now on the exhibition world map," said Ha, adding that playing host to some international events and trade fairs, including the ITU Telecom World 2006, had attracted interest from organizers worldwide.

"The original idea was to start with some smaller shows and build our reputation from there," he said. "But the growth has been beyond our expectations."

The AWE also posted an operating profit in its first year, almost unheard of in an industry that normally requires several years for new venues to find their footing.

Meanwhile, the Hong Kong Convention and Exhibition Centre is also expanding the atrium link between HKCEC phase 1 and phase 2.

The expansion project is expected to be completed in 2009, and will increase the dedicated exhibition space to 65,000 sqm from the current 46,000 sqm. A phase 3 expansion is also under consideration.

At the same time, competitors in Macau are gearing up. The Venetian Macao, operated by gaming and exhibition giant Las Vegas Sands Corp, will open in the second half of this year.

The complex will house a 3,000 -suite hotel with 100,000 sqm of convention and meeting space, including a 6,500 sqm grand ballroom. The complex will also have a 15,000-seat arena for concerts and other stage performances.

The Venetian has already secured five multi-year trade shows, including the Asian Automotive Aftermarket Products Expo; CMP Asia Jewelry and Watch Show, and the Global Gaming Expo Asia.

Despite the aggressive competition, Ha said he still sees major opportunities ahead. While there is an imbalance between supply and demand in the short term, Ha said the medium and long term prospects are strong, especially as China's economy continues to grow.

This year, AWE will continue to host a number of large events culminating in the Asian Aerospace 2007 from September 3 to 6.

Asian Aerospace is one of the world's leading aerospace exhibitions. Last year's event in Singapore attracted 940 exhibitors from 43 countries and more than 34,300 trade participants from 89 countries.

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Organizers accused of trade show greed
Hong Kong Standard
Monday, April 09, 2007

Trade show organizers motivated by profit are oversaturating the market with exhibitions and events, according to Ken Lo, vice chairman of the Hong Kong Jewellery and Jade Manufacturers Association.

"Over the past 20 years, exhibitions and trade shows have played a very important role for us in providing trading platforms, but for the past 10 years exhibition organizers have been abusing this industry as they organize events to make profits from the shows, rather than meet the demand of the market," Lo said.

An exhibition is supposed to be an event led by industry, but trade show organizers have gradually gained more and more control, he said.

Lo cites jewelry exhibitions in Hong Kong as one example, pointing out that five such events are held each year, When trade shows are held so frequently, companies feel pressured to sign up for fear of missing an opportunity to meet buyers, despite knowing that potential benefits are limited.

They are also burdened with unnecessary expenses, Lo said.

Daniel Cheung Wai-hung, vice chairman of the Hong Kong Exhibition and Convention Industry Association, agrees with Lo's comments on the burgeoning number of trade show organizers.

However, in reality, those organizers cannot force companies to take part in any particular event, he said.

"At the end of the day, it is the market that regulates or decides which trade shows will survive and which will phase out. The exhibition industry in Hong Kong is a perfect free market. There is no entry barrier and anybody can enter it. But this does not mean everybody will survive.

"In the exhibition industry, there is no loyalty. As long as you can produce good shows with good results, industry associations will return and support your shows next time. But if you underperform, you will disappear."

Cheung said there is a huge demand among local companies for exhibitions and trade shows to enable them to explore opportunities internationally.

According to an HKECIA survey, 41,599 companies participated in Hong Kong exhibitions in 2005, up 59 percent from 26,097 firms in 2000.

Local companies accounted for about half the 41,599 participants.

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Macau poses conventions challenge
Hong Kong needs new facilities as Venetian Macao is set to open a venue for meetings
11 July 2007
South China Morning Post

Hong Kong is in urgent need of new exhibition and convention facilities to fend off growing competition from Macau and nearby cities.

Its higher value-added convention and exhibition business will face a head-on challenge when more than one million square feet of convention and exhibition area is completed at the Venetian Macao on the Cotai Strip in Macau in the fourth quarter, according to industry participants.

Although a big hit from Macau was unlikely in short term, they said the government should consider improving the industry's facilities in preparation for the long-term threat.

Michael Li, executive director of the Federation of Hong Kong Hotel Owners, said his group planned to form a strategic alliance with other concerned parties to call for the development of phase three of Hong Kong Convention and Exhibition Centre.

In the long term, according to Mr Li, Hong Kong needs new facilities for meetings, incentives, conventions and exhibitions (MICE) as the sector faces intensifying competition from nearby cities.

Macau, following the development path of Las Vegas, will make plenty of rooms for exhibitions and conventions. It now has only four convention and exhibition centres with a total gross area of 218,000 square feet, which does not qualify for the hosting of an international trade fair.

However, the outlook for the MICE sector in Macau would change after the opening of the exhibition and convention facilities at Venetian Macao.

The centre will provide an area of 163,900 sq ft for conventions, 803,900 sq ft for exhibitions plus an arena with 15,000 seats.

The exhibition area at Venetian Macao will be larger than the Hong Kong Convention and Exhibition Centre or AsiaWorld-Expo.

According to a Jones Lang LaSalle report, at least 44 events have been confirmed to be held at the Venetian Macao in first two years of its operations.

The venue will receive an estimated attendance of 327,000 for exhibitions or trade shows in the fourth quarter of the year and 1.3 million for a year.

Marcos Chan, associate director of research department at Jones Lang LaSalle, said Macau's new convention and exhibition facilities would bring in overseas business travellers who generally spend more on accommodation and food and beverages than regular tourists.

He believes demand and supply for hotel rooms in Macau will rise alongside the influx of business travellers.

Stanley Chu, the chairman of Hong Kong Exhibition Organisers Association, also called for more exhibition and convention facilities in Hong Kong, even though he believes the threat from Macau is not imminent.

Mr Chu said Las Vegas took more than 20 years to develop into a convention and exhibition destination, and Macau would likewise need time to develop a successful convention and exhibition industry.

"But Macau has an advantage in hosting conventions because it is full of entertainment facilities," he said.

Mr Chu said the Hong Kong government should partner with mainland government bodies and associations to corner international exhibitions in the city. A new exhibition centre in the urban area could also help the development of Hong Kong's exhibition industry.

"The parking area of Hong Kong Convention and Exhibition Centre has to be converted into exhibition area during peak seasons," said Mr Chu.

"This shows that the supply for exhibition space is tight."

William Cheng Kai-man, chairman of Magnificent Estates, which own hotels in Macau and Hong Kong, believes the outlook for Hong Kong's hotel and exhibition industries remains positive despite the opening of a convention and exhibition centre in Macau.

"Macau does not have an international airport and international flights, which is a problem for the development of its exhibition and convention industry. This definitely gives Hong Kong an advantage in hosting exhibitions," Mr Cheng said.

Last year the Hong Kong Trade Development Council studied the development of the convention and exhibition industry in nearby cities.

Its report shows that Macau has strengthened its position in hosting conventions while Guangzhou has increased its capacity for hosting exhibitions with an international convention and exhibition centre in Bazhou.

The size of the Guangzhou International Convention and Exhibition Centre will be doubled to more than 3.22 million sq ft by the end of next year.

Lawrence Yau, spokesman for Hong Kong Trade Development Council, said: "Hong Kong does not have enough venues for holding exhibitions. The exhibition area is fully booked in peak seasons."

Under its expansion plans, which started last year, the Hong Kong Convention and Exhibition Centre will have added an exhibition area of 208,821 sq ft by 2009.

The Trade Development Council will submit a proposal for the development of phase three of the centre by the end of the year.

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Trade fairs still a money-making business despite profit warning
Hong Kong Standard
Monday, July 16, 2007

A profit warning posted by a leading trade fair organizer may not be a pointer to the poor financial health of Hong Kong's exhibitions sector, which in fact, is expanding physically, adding more space and launching new events, analysts said.

Last week, Kenfair International Holdings (0223), known for its Mega Show series of exhibitions, said costs at three overseas exhibitions have risen and losses widened, while losses at its Spring Fair in January this year have tripled with exhibitor numbers falling.

The company is set to announce annual income for the year ended March 31 by the end of this month.

Sun Hung Kai Financial strategist Castor Pang Wai-sun said: "It is weird to see the company losing money. Trade fairs continue to be a money-making business. Europe and the United States are constantly being overbooked, even in Hong Kong and the mainland."

Kenfair organized three overseas exhibitions in Europe and the United States, but none has performed well.

"It is about catching on to the trend and perhaps the company has missed out. Overall, business opportunities for trade fairs should be good," an analyst said.

"Poor performance may be due to the fact that the company is taking on new projects by expanding and increasing the number of overseas exhibitions," said Kenny Tang Sing-hing, associate director at Tung Tai Securities. Pang noted that customer reaction is critical.

"If your customer loves your product, then it is likely that they will continue to use you. But, if the exhibition is not attractive, then very likely they will lose their clients."

One of the biggest players in the multibillion dollar business, Hong Kong Trade Development Council is creating 19,400 square meters of extra exhibition space, equivalent to 1,000 booths by expanding the Hong Kong Convention and Exhibition Centre.

The Hong Kong Exhibition and Convention Industry Association, a trade body, estimates that the exhibition industry contributes HK$19 billion to the economy, based on data from an earlier study.

Last month, the association said the number of trade exhibitions increased to 65 last year from 40. It was the year that AsiaWorld-Expo opened, offering 70,000 sq m of space in the city.

TDC spokesman Lawrence Yau Chung-hok said: "We believe the exhibition scene in Hong Kong is developing."

He added that trade fairs are international in composition. "TDC fairs consist of 50 percent overseas buyers."

TDC, a public body, organized 31 fairs in fiscal 2006-2007 and also launched six new events. These attracted a record 27,000 exhibitors and 622,000 buyers, according to its annual report tabled to the Legislative Council last week. TDC reported consolidated income of HK$1.93 billion in 2006-07.

Tang from Tung Tai said: "The trade fair business in Hong Kong is doing pretty good in itself, there is good growth. Kenfair's poor performance may be due to their efforts aimed at expanding their overseas market."

Pico Far East Holdings (0752), a Hong Kong-listed exhibition services provider, said last month net income for the six months ended April was up 39.9 percent to HK$80.2 million on turnover of HK$1.08 billion, up 30.5 percent.

Following the profit warning last Wednesday, Kenfair's shares fell 11.2 percent to HK$1.03 the following day but closed on the last day of trading at HK$1.18, up 14.5 percent.

Pico dropped 2.7 percent on Friday to close at HK$2.51.

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Book fair opens amid hopes of record turnout
Hong Kong Standard
Thursday, July 19, 2007

Swarms of people flocked to the Hong Kong Convention and Exhibition Centre yesterday for the opening of the 18th Hong Kong Book Fair organized by the Trade Development Council.

More than 12,000 people poured through the doors in the first two hours, 30 percent up on last year's 9,000, and by midday the attendance stood at 42,000.

According to the organizer, the total number of visitors during the seven days of the fair could exceed last year's record of 680,000.

However, it was not all smiles and cheers.

Within the first couple of hours some visitors were complaining about barriers that forced visitors to go through all five sections of the exhibition while one person thought the pictures in a book on Greek mythology should have been X-rated and taken off the stand.

The fair is the largest to be arranged in Hong Kong with 475 exhibitors taking part, a 9.4 percent increase on last year.

The five exhibition halls span 37,225 square meters, breaking yet another record.

According to the council, the large early crowd was probably the result of the change in the pricing system with those arriving before 1pm paying only HK$10 instead of HK$25.

In addition, opening hours will be extended till midnight on Friday and Saturday and extended bus services will be available for certain routes.

Octopus Card readers have also been installed to reduce queues at ticket offices.

Aptly themed "Reading Hong Kong," the book fair features more than 6,000 new books, covering almost every genre imaginable.

Especially heavily stocked were investment books, which are expected to sell easily under the influence of Hong Kong's bull economy.

Other strong competitors are books written by celebrities, politicians, professionals and even singers.

Besides purchasing books, visitors can participate in several activities such as talk shows held by famous writers like Long Ying-tai, Chun Shu and Ngai Hong.

At the Children's Paradise in hall five, story-telling sessions will be held daily by prominent members of society.

One of those at the hall yesterday was Legislative Council President Rita Fan Hsu Lai-tai who told two famous Chinese stories about a painter and a scholar to an audience filled with young children.

"I went to every hall because I followed the markers," said Leung, a middle-aged father, who was attending the fair for the third consecutive year.

"Basically you have to visit all halls if you follow the markers, so this year was not as pleasurable as I had to pass areas in which I had no interest."

The obscenity complaint came from a visitor who said one of the books sold by a Taiwanese publisher contained "provocative" material.

Patrolling officers from the Television and Entertainment Licensing Authority were notified and investigated the case.

The book in question turned out to be about Greek mythology and, according to a council spokesman, the Greek characters were not indecent and within acceptable standards.

According to the contract terms between the the council and exhibitors, all material on sale must be Class I articles, which may not contain any indecent or obscene content.

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Hong Kong Book Fair Website
http://hkbookfair.tdctrade.com/

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Countdown starts for space shuttle exhibit
Hong Kong Standard
Friday, July 27, 2007

The world's largest nonpermanent aerospace exhibition will lift off at Tsim Sha Tsui in December.

"Space Shuttle 2007," as the exhibition is called, will feature retired space shuttle Buran and other items on loan from the Russian space program and the United States's National Aeronautics and Space Administration.

"The goals of the exhibition are twofold: to provide an educational experience for visitors, and to give local tourism a boost," Hong Kong Space Shuttle 2007 project director Karen Loh Yuk-ying said yesterday.

Timed to coincide with the Christmas and New Year holidays, the exhibition is projected to attract at least one million visitors. It is heavily targeted at local students with morning visiting hours reserved for school groups.

Entrance fees may seem relatively steep, ranging from HK$70 to HK$130 for students and HK$160 to HK$190 for adults. But Loh announced the creation of a Space Education Fund which will give underprivileged students a chance to see the exhibition.

The highlight is the space shuttle Buran, which has been exhibited in Sydney, Australia, and in Bahrain. It is the only space shuttle ever to have been publicly displayed.

Buran - Russian for snowstorm - was part of the Soviet Union's ambitious space program. It was the first spacecraft to complete a fully automated launch, maneuver in orbit and land.

The interactive exhibition will feature a 3D theater and a shuttle flight simulator and aims to give visitors an exciting, hands-on experience of space technology, Loh said.

She compared the scope of Space Shuttle 2007 with that of NASA's Kennedy Space Center Visitor Complex, which has long sought to engage student interest in science by introducing children to space exploration.

In conjunction with the launch of the aerospace expo, the Chinese University of Hong Kong is planning an exchange program that would send top students and professors to mainland universities such as the Beijing University of Aeronautics and Astronautics.

China's space program is expanding, with a third manned space mission planned for next year.

The CUHK program will also allow mainland university students to visit Hong Kong during the expo.

"Aerospace studies span many disciplines, such as physics and mechanical engineering," said CUHK's dean of students Professor Ho Puay-peng, adding aerospace studies exemplify the importance of a multidisciplinary approach to liberal arts education.

Space Shuttle 2007 opens at the West Kowloon Reclamation Area on December 12.

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Jockey Club to boost corporate entertainment
Convention facilities planned
2 August 2007
South China Morning Post

The Jockey Club is looking to bolster its corporate entertainment business with convention facilities in a bid to stave off intensifying competition from neighbouring gambling mecca Macau.

"You only have to go to the ferry and see how many people from Hong Kong go [to Macau]. It is a significantly competitive threat to us," the club's chief executive, Winfried Engelbrecht-Bresges, said.

The club will study the feasibility of developing a "medium-size venue" to provide corporate hospitality and entertainment options to members. A detailed master plan is expected to be ready by January or February for approval by the board of directors. He said the investment would be "significant".

The potential payoff is also considerable given that many racecourses in Britain derived 20 to 30 per cent of their revenue from the corporate entertainment business, Mr Engelbrecht-Bresges said.

Government approval is not necessary for the venture. "The Jockey Club does not have to inform us on this issue. The club is allowed to do any commercial activity as long as it does not touch on gambling," a Home Affairs Bureau spokesman said yesterday.

The increasing focus on non-gaming business comes as Macau ramps up the development of its tourism infrastructure. In four weeks' time, The Venetian Macao-Resort-Hotel will open, making available 100,000 square metres of convention and meeting space as well as 3,000 hotel rooms. Other developments are expected to follow with similar facilities in the next few years.

He said the club did not need to engage in major convention business like the Venetian but its members had expressed a desire for a medium-size venue for evening entertainment.

The club is also looking to Las Vegas for growth. In June, the government granted approval for the club to accept bets on horse racing directly from Las Vegas casinos. The final green light will not come until the Nevada Gaming Control Board rules on the club's application at two hearings on August 8 and 23. The deal is expected to generate between HK$15 million and HK$20 million in additional betting turnover per meeting in the short term.

In the 2006/07 financial year, the club reported its highest total turnover to date of HK$100.78 billion, 3.24 per cent higher than a year earlier. Bets placed on horse races rose 6.58 per cent to HK$64 billion while Mark Six turnover improved 4.7 per cent to almost HK$6.59 billion.

Football betting, however, underperformed by 3.46 per cent as turnover fell to HK$30.19 billion from HK$31.27 billion. Mr Engelbrecht-Bresges said last year's result benefited from a "significant turnover impact" from the World Cup but that despite the year-on-year decline, he was "very positive".

The club's charities trust received HK$1.35 billion in 2006/07, down about 25 per cent from a year ago. The trust donated HK$1.05 billion to education, community and recreational causes, a 2.1 per cent increase year on year.

The revenue the government receives from bets rose year on year but betting duty for horse racing in 2006/07 fell short of the guaranteed HK$8 billion minimum by about HK$119 million. Mr Engelbrecht-Bresges said adding one extra race meet to the regular 78-meeting season would have easily covered the shortfall.

As part of betting duty reforms, the club has advocated extending the regular season by five extra meetings, permission for which was not granted by the government.

[hkskyline]

Exhibition tradecalls for tourism body to take over
Convention industry fears losing its share to regional competitors
7 August 2007
South China Morning Post

Exhibition trade experts say the Tourism Commission should oversee strategic development of the convention industry to protect Hong Kong's share of the lucrative business, which contributed HK$26 billion to the economy last year.

Stanley Chu Yu-lun, chairman of the Exhibition and Convention Industry Association, warned that intensifying regional competition highlighted the increasingly tenuous lead Hong Kong holds in the convention industry.

With Singapore, Thailand and other markets dedicating more resources to attracting lucrative trade shows and exhibitions, Hong Kong needed to demonstrate its commitment to growing the sector, he said.

"Who is going to bid and compete for events? We can't just sit and wait for Beijing's blessing," he said.

He pointed out that the Korea Convention Bureau, a government agency under the Korea Tourism Organisation, had been in operation for about three decades. Likewise, the Singapore Exhibition and Convention Bureau was a division of the Singapore Tourism Board. In 2002, the Thailand Convention and Exhibition Bureau was set up to market corporate meetings, incentive events, conventions and exhibitions.

But in Hong Kong no one official agency is responsible for promoting the city to show organisers, he said.

The Trade Development Council and Tourism Board looked after different aspects of the business, which made co-ordinating efforts more difficult, Mr Chu said.

The council also has its own trade fairs, which could result in a conflict of interest if organisers put on competing shows.

Previous calls to dedicate an agency to develop the industry received a lukewarm response from former financial secretary Henry Tang Ying-yen, the association's executive vice-chairman, Daniel Cheung Wai-hung, said.

"Other countries are seeing the potential of the convention industry and have set up bureaus to map out long-term plans and growth strategies. This is putting pressure on Hong Kong," Mr Cheung said.

The government said yesterday that the Commerce and Economic Development Bureau was responsible for developing the industry and that there was no need to set up a new department for the sector.

The association, which will present its case for the change to government officials next week, released a report yesterday that showed the industry's contribution to the local economy rose to HK$26 billion last year from HK$19 billion in the 2004, when the last study was conducted.

The contribution included HK$510 million in profits tax, HK$280 million in salaries tax, hotel tax of HK$130 million and airport tax totalling HK$50 million. Directly related to the industry totalled HK$13.2 billion, of which almost HK$8.2 billion came from visitors. The rest was business-related expenditure, including spending by event organisers and exhibitors.

The catering, retail and hotel sectors were the biggest beneficiaries of visitor spending at about HK$7 billion. Business-related spending reached HK$5 billion.

The industry also employed 58,500 full-time workers last year, up from 47,000 in 2004, the report said.

Exhibition-related tax revenue for the government was estimated at HK$970 million last year.

A Tourism Board spokesman said it would continue to focus on appealing to high-yield target markets such as conventioneers and business travellers.

[vincent]

Originally Posted by hkskyline

Macau poses conventions challenge
Hong Kong needs new facilities as Venetian Macao is set to open a venue for meetings
11 July 2007
South China Morning Post

Hong Kong is in urgent need of new exhibition and convention facilities to fend off growing competition from Macau and nearby cities.

Its higher value-added convention and exhibition business will face a head-on challenge when more than one million square feet of convention and exhibition area is completed at the Venetian Macao on the Cotai Strip in Macau in the fourth quarter, according to industry participants.

Although a big hit from Macau was unlikely in short term, they said the government should consider improving the industry's facilities in preparation for the long-term threat.

Michael Li, executive director of the Federation of Hong Kong Hotel Owners, said his group planned to form a strategic alliance with other concerned parties to call for the development of phase three of Hong Kong Convention and Exhibition Centre.

In the long term, according to Mr Li, Hong Kong needs new facilities for meetings, incentives, conventions and exhibitions (MICE) as the sector faces intensifying competition from nearby cities.

Macau, following the development path of Las Vegas, will make plenty of rooms for exhibitions and conventions. It now has only four convention and exhibition centres with a total gross area of 218,000 square feet, which does not qualify for the hosting of an international trade fair.

However, the outlook for the MICE sector in Macau would change after the opening of the exhibition and convention facilities at Venetian Macao.

The centre will provide an area of 163,900 sq ft for conventions, 803,900 sq ft for exhibitions plus an arena with 15,000 seats.

The exhibition area at Venetian Macao will be larger than the Hong Kong Convention and Exhibition Centre or AsiaWorld-Expo.

According to a Jones Lang LaSalle report, at least 44 events have been confirmed to be held at the Venetian Macao in first two years of its operations.

The venue will receive an estimated attendance of 327,000 for exhibitions or trade shows in the fourth quarter of the year and 1.3 million for a year.

Marcos Chan, associate director of research department at Jones Lang LaSalle, said Macau's new convention and exhibition facilities would bring in overseas business travellers who generally spend more on accommodation and food and beverages than regular tourists.

He believes demand and supply for hotel rooms in Macau will rise alongside the influx of business travellers.

Stanley Chu, the chairman of Hong Kong Exhibition Organisers Association, also called for more exhibition and convention facilities in Hong Kong, even though he believes the threat from Macau is not imminent.

Mr Chu said Las Vegas took more than 20 years to develop into a convention and exhibition destination, and Macau would likewise need time to develop a successful convention and exhibition industry.

"But Macau has an advantage in hosting conventions because it is full of entertainment facilities," he said.

Mr Chu said the Hong Kong government should partner with mainland government bodies and associations to corner international exhibitions in the city. A new exhibition centre in the urban area could also help the development of Hong Kong's exhibition industry.

"The parking area of Hong Kong Convention and Exhibition Centre has to be converted into exhibition area during peak seasons," said Mr Chu.

"This shows that the supply for exhibition space is tight."

William Cheng Kai-man, chairman of Magnificent Estates, which own hotels in Macau and Hong Kong, believes the outlook for Hong Kong's hotel and exhibition industries remains positive despite the opening of a convention and exhibition centre in Macau.

"Macau does not have an international airport and international flights, which is a problem for the development of its exhibition and convention industry. This definitely gives Hong Kong an advantage in hosting exhibitions," Mr Cheng said.

Last year the Hong Kong Trade Development Council studied the development of the convention and exhibition industry in nearby cities.

Its report shows that Macau has strengthened its position in hosting conventions while Guangzhou has increased its capacity for hosting exhibitions with an international convention and exhibition centre in Bazhou.

The size of the Guangzhou International Convention and Exhibition Centre will be doubled to more than 3.22 million sq ft by the end of next year.

Lawrence Yau, spokesman for Hong Kong Trade Development Council, said: "Hong Kong does not have enough venues for holding exhibitions. The exhibition area is fully booked in peak seasons."

Under its expansion plans, which started last year, the Hong Kong Convention and Exhibition Centre will have added an exhibition area of 208,821 sq ft by 2009.

The Trade Development Council will submit a proposal for the development of phase three of the centre by the end of the year.

it is good that they are already preparing for phase 3.

[hkskyline]

Computer fair reaches new highs
Hong Kong Standard
Tuesday, August 28, 2007

The curtain came down on the four-day Hong Kong Computer and Communications Festival 2007 at the Hong Kong Convention and Exhibition Centre yesterday with both attendance and sales at new highs.

According to the Chamber of Hong Kong Computer Industry, which organized the festival, attendance reached 351,000, an increase of 9.7 percent on last year's 320,000.

Event executive Esme Tang Chung- yi said Sunday's attendance of 98,000 was a one-day record. She said exhibitors indicated the festival was a success as most enjoyed record sales.

"As one exhibitor told us, sales for the first three days already exceeded the total sold last year, so what he earns [Monday] is a bonus," Tang said.

Among the more popular items were the new high-definition LCD monitors with at least 1,400 sets sold.

Part of the reason may have been the price, with the 32-inch sets selling for HK$3,999 and the 37-inch sets at HK$4,999.

A booth selling memory sticks and cards said its sales were double that of last year.

A booth selling computer notebooks reported a record sale of 450 sets during the first two days of the festival.

"It is the last in the series of exhibitions for the summer holiday, so many parents brought their children with them to buy what they needed before the new school year begins," Tang said.

Apart from schoolchildren, there were also large numbers of mainland tourists, the elderly and the disabled - the three groups that were given free admission.

"We have connections with some of the associations looking after the elderly. I am told some booked vans to bring groups to the exhibition," Tang added.

Tang said promotion by the Hong Kong Tourism Board brought a surge in the number of mainland visitors, with a record 3,000 in the first two days.

[hkskyline]

Hong Kong plays fair with health and beauty products
Thousands of visitors will be able to keep up with the latest trends on display at Asia-Pacific region's largest event
14 November 2007
South China Morning Post

One year, it is hair products that take off, then it might be skin care or spa goodies. Buyers have to stay ahead of the market, which is why an annual fair in Hong Kong provides them with the latest trends in skin care, makeup, perfume, packaging and other items.

For the past 12 years Hong Kong has been the hub for a health and beauty exhibition, which brings manufacturers and buyers together from around the world.

The Cosmoprof Asia and The Natural Health Fair "enjoys the position of being Asia-Pacific's largest fair of its kind in the beauty and cosmetics market, and Hong Kong is in a pivotal role in that it sets the trends for the region", said Cosmoprof Asia director Michael Duck.

The show, which runs from today until Friday at the Hong Kong Convention and Exhibition Centre in Wan Chai, will play host to 1,265 exhibitors from 35 countries with 17 national group pavilions, including Italy, Germany, France, Spain, Israel, the United States, the mainland and South Korea.

Last year there were nearly 38,000 visitors, and that number is expected to rise this year.

There will also be three new pavilions - Hong Kong, Singapore, South Africa. Alongside a variety of products, Hong Kong, in particular, will be showcasing all forms of attractive packaging. Speakers from Thailand and Singapore will give seminars about spa trends, including retailing and marketing. And South Africa will showcase special traditional African ingredients and botanical products.

In previous years, the show has largely seen many buyers from Europe. The difference now is that as disposable incomes go up in this region, there are more buyers from areas such as India.

"There's also much more interest from Dubai," Mr Duck said. "We're seeing more visitors from there and their main trading partner is Iran. Other countries that are growing in importance include India, with a population of 1.1 billion people and a burgeoning middle class.

"What you are seeing in the exhibition over the years is the consumer trends with China, South Korea and other Asian countries all having higher disposable incomes.

"Some 85 per cent of visitors come from the Asia-Pacific region and there is very good attendance from Japan."

Participants at the fair know that they can gather once a year and find the latest information on beauty products, including skin and hair care, fragrances and beauty furniture including spa equipment.

At the same time and at the same venue, wholesalers and other buyers can peruse the wares available at The Natural Health Fair, which is in its sixth year. This fair will be in the display area in the Grand Hall and Grand Foyer.

On show will be natural health products, including health food, dietary supplements, Asian traditional medicine and therapies from around the world.

New Zealand is the Focus Country of the Year, bringing together leading manufacturers with support from the government. Visitors can enjoy an in-depth seminar called Natural Trade, New Directions, highlighting the hottest botanicals from South Africa, the Arctic Ocean and the Amazon rainforest.

The US Commercial Service in Hong Kong is also instrumental in bringing in buyers from different regions. This year it brings buyers from Bangalore in India.

"A few years ago the office brought in buyers from Kabul and Baghdad," Mr Duck said.

[hkskyline]

TID to participate in World SME Expo
Government Press Release
Tuesday, December 11, 2007

The Trade and Industry Department will participate in the 7th World SME Expo organised by the Hong Kong Trade Development Council at the Hong Kong Convention and Exhibition Centre from tomorrow to Friday (December 12-14).

This annual expo aims to help small and medium enterprises (SMEs) explore international market opportunities, and provide a platform for service providers to promote their services and business solutions to SMEs.

Being one of the supporting organisations, the Trade and Industry Department will set up exhibition booths (A19 to A24) at Hall 1, to showcase its services offered to SMEs including the Support and Consultation Centre for SMEs (SUCCESS), SME Funding Schemes, Hong Kong Awards for Industries, and the Mainland and Hong Kong Closer Economic Partnership Arrangement.

During the Expo, the department will hold two seminars - "SUCCESS Helps Build Success" on Thursday at 3pm, and "SME Funding Schemes - Loan Guarantee Scheme, Export Marketing Fund and Development Fund" on Friday at 10.30am.

The department will also provide on-the-spot "Meet-the-Advisers" Business Advisory Service to give SMEs free consultation on business start-up, marketing, legal, and accounting/financing matters.

For further details, please visit the 7th World SME Expo website at http://www.worldsmeexpo.com.

[hkskyline]

Convention blitz
29 August 2007
Hong Kong Standard

The opening yesterday of the US$2.4 billion (HK$18.72 billion) Venetian Macao complex _ which houses the world's second-largest building _ is expected to hurt Hong Kong's tourism industry in the short term as the Venetian's convention and exhibition facilities draw more business visitors to Macau.

Las Vegas Sands Corp chairman and chief executive Sheldon Adelson plans to turn the Venetian Macao on the Cotai Strip into a major international convention hub.

In addition to the world's largest casino at 51,000 square meters and a 3,000-suite hotel, the complex offers about 111,500 sqm of meeting, convention and exhibition space _ big enough to accommodate 90 Boeing 747 jumbo jets. The center has already booked 44 events that will be hosted there over the next two years.

"The opening of the Venetian Macao will inevitably bring novelty," said a spokesperson for the Hong Kong Tourism Board.

"We expect that there will be a certain impact on incentive travel and corporate meetings from some short-haul markets in the near future."

The Hong Kong Convention and Exhibition Centre in Wan Chai has net space of 49,000 sqm _ less than half of what the Venetian Macao offers. However, the HKCEC's size will expand to 60,000 sqm in 2009 after the completion of the Atrium Link Extension. "The Venetian may create a little competition," HKCEC managing director Cliff Wallace told The Standard. "[But] I don't think it's going to be competition we have to be concerned about."

AsiaWorld-Expo at Hong Kong International Airport has about 66,000 sqm of ground-floor hall space.

The HKTB said it will reinforce overseas promotions, including targeting corporate decision-makers. It also plans to encourage business travelers to make side trips to Hong Kong during their meetings in nearby destinations.

"More positively, it's going to be competition that will eventually be an advantage to Hong Kong and the HKCEC," Wallace said. "What Macau is bringing ... is an enormous amount of new attention to this region."

The tourism board spokesperson said Hong Kong already faces competition from other Asian destinations, and the addition of meeting, convention, and exhibition facilities in nearby destinations will only enhance the entire industry in the Pearl River Delta region.

"We believe that Hong Kong continues to enjoy competitive advantages in staging major conventions and exhibitions," she said. "These include our experience and expertise in staging major international events, our professional and hospitality services, our first-class infrastructure and efficient transportation network."

Others also cited Hong Kong's more advanced infrastructure as a key difference between Hong Kong and Macau.

"Having a large exhibition center is not enough," said AsiaWorld-Expo Management chief executive Allen Ha. "The area's infrastructure development is also important."

Wallace said infrastructure will be a challenge for Macau initially.

"They're going to be a little bit behind in some of the infrastructure elements," he said. "It will be a disadvantage to them."

What Hong Kong has to do is to continue developing its core strength _ which is its international connection, Ha said, adding that more than 50 percent of AsiaWorld-Expo's visitors are from countries outside Hong Kong.

Wallace emphasized that the HKCEC and the Venetian are not entering into any price wars.

"We have a great mutual respect for each other," Wallace said. "We're not into situations where we're trying to steal each other's business."

However, Ha warned that Hong Kong should not rest on its laurels.

"Every city is improving," he said. "The Hong Kong government, together with different industries, should collaborate in providing better services to visitors."

The Venetian is also billing itself as a world-class entertainment destination. The complex includes the 15,000-seat Venetian Arena, which in coming weeks will host a pair of National Basketball Association exhibition games and a celebrity tennis match between Roger Federer and Pete Sampras.

Wallace said Hong Kong would benefit from the entertainment acts Macau will attract.

[hkskyline]

Extension for shows center
10 September 2007
Hong Kong Standard

The Hong Kong government has given the green light to the Hong Kong Convention and Exhibition Centre Phase III extension, a move analysts said would help the city better compete with the emerging threat from Macau.

Members of the inner circle of the administration, including Chief Executive Donald Tsang Yam-kuen and Chief Secretary Henry Tang Ying-yen, are supporting the development, a senior government source told The Standard.

They believe additional capacity from Phase III will help Hong Kong stay competitive as a leading convention city in Asia, the source said. "There is an urgency to speed up the expansion of the HKCEC," Jeffrey Lam, chairman of the Trade Development Council's Toys Industry Advisory Committee, told The Standard.

Lam said there is often a long waiting list of exhibitors who were unable to book space at HKCEC trade fairs. "Obviously, Macau would like to take away business from us," Lam said. "Nevertheless, we still have our competitive edge in terms of software.

"What we lack is hardware - the exhibition space." The Phase III Benjamin Scent and Bonnie Chenextension will expand the floor space to beyond 100,000 square feet, a member of the 19-person governing body of the TDC said.

The newly-enlarged HKCEC facilities have an exhibition area comparable to the Venetian Macao, which has about 111,500 square meters of meeting, convention and exhibition space. "The Venetian attracts, first of all, because of the huge space that is available, and the other [reason is] entertainment," said Credit Suisse analyst Gabriel Chan. "In Hong Kong, the space is almost always full."

Phase III will be developed on land now occupied by the bus terminus and sports grounds near Great Eagle Centre, the government source said.

Although the existing sports facilities will be demolished, the TDC plans to build new sports facilities on top of the HKCEC Phase III structure to serve the public interest.

In tandem with the expansion, the government will rebrand HKCEC as an all-around complex offering exhibition, performance, and sports facilities, the source said.

"The Venetian attracts, first of all, because of the huge space that is available, and the other [reason is] entertainment," said Credit Suisse analyst Gabriel Chan. "In Hong Kong, the space is almost always full."

Phase III will be developed on land now occupied by the bus terminus and sports grounds near Great Eagle Centre, according to the government source. Although the existing sports facilities will be demolished, the TDC plans to build new sports facilities on top of the HKCEC Phase III structure.

In tandem with the expansion, the government will rebrand HKCEC as an all-around complex offering exhibition, performance, and sports facilities, the source said.

"There's not that much convention business in Hong Kong right now," said Morgan Stanley analyst Rob Hart. "Macau is better situated to focus on the convention business, and there's plenty of other convention business around in the Pearl River Delta region."

The Phase III extension follows the Atrium Link extension, now under way and expected to be completed in 2009.

The Atrium Link extension, which links the Phase I and Phase II wings of the convention center, will add 19,400 sq m of exhibition space, an increase of 42 percent, for a total exhibition area of 66,000 sq m.

At the moment, the HKCEC offers 49,000 sq m of exhibition space spread between the Phase I and Phase II wings. Plans call for construction to begin on the Phase III project in 2009. Work is expected to be completed by 2015.

[hkskyline]

Shining example of a successful formula
The events have grown over the years as more buyers see business opportunities on the region's doorstep.
Hong Kong Jewellery & Watch Fair/Asia's Fashion Jewellery & Accessories Fair
22 September 2007
South China Morning Post

The Hong Kong Jewellery & Watch Fair has grown considerably from a fair with just 100 local exhibitors gathered in a hotel ballroom to one with more than 2,500 exhibitors that occupies the AsiaWorld-Expo and the Convention and Exhibition Centre.

The fair, which celebrates its 25th anniversary this year, opens tomorrow and runs until next Saturday. Running with the event is Asia's Fashion Jewellery & Accessories Fair, which also opens tomorrow and runs until Wednesday at the AsiaWorld-Expo.

Exhibitors at the two fairs will include more than 1,000 jewellery manufacturers, 400 loose diamond suppliers, 720 diamond jewellery exhibitors, and hundreds of firms showcasing gemstones. The fair is also host to 870 pearl suppliers and manufacturers of pearl jewellery, and suppliers of equipment and packaging.

The concept of trade fairs was new in Asia when the event began. It was three or four years before the concept gained recognition and started to grow. By 1995, when CMP Asia bought the fair, it was attracting 800-plus exhibitors. The event now draws more than 40,000 traders from 140 countries, and 2,500 jewellery companies from 48 countries and regions.

The jewellery industry in Hong Kong has undergone tremendous change since the fair began. Hong Kong companies have developed and grown, and production has moved to the mainland where costs are much lower. Universal Jewellery Design Center was one of the first companies to exhibit at the fair and continues to do so. Executive director Kenneth Kwan Yui-man said that following the Asian financial crisis 10 years ago, jewellery companies had to expand their reach to the United States and European markets, rather than rely on companies in Asia for business. He said it took some years to gain the trust of those markets but it was worth the wait.

"Once you gain the trust of buyers, unless something goes incredibly wrong, they won't stop trading with you."

Mr Kwan said the uncompromising quest for quality from US and European brands differed from the Chinese approach to manufacturing which tended to focus on the cost effectiveness over quality.

"That's why Chinese [companies] find it more difficult to build a successful brand," he said.

Mr Kwan believed that as the market matures, mainland manufacturers will take up much more of the world market share. Hong Kong companies still have an advantage now, he said, because they had more experience dealing with western companies. However, mainland companies were learning fast and they would catch up with Hong Kong in five to 10 years.

Letitia Chow Mei-lai, director of business development for jewellery at CMP Asia, said there was a growing interest from European jewellers in the Asian market.

As the Asian jewellery industry developed and grew more competitive, traditional European jewellers would lose market share. They saw Asian countries as competitors and as fast-evolving markets. They wanted a presence in Asia to counteract their losses, Ms Chow said.

She said unhealthy competition between companies was a concern because companies competed for low prices and the profitability of jewellery companies continued to fall. "In the jewellery industry, the cost for doing business is high while the profit margin is relatively low. When a leather handbag can cost several hundred thousands dollars, jewellery which is made of limited natural resources should be sold at an even higher price," She said.