AsiaWorld-Expo, Asia’s leading exhibition and convention venue, has once again proven its pivotal role in the success of Hong Kong’s MICE (Meetings, Incentives, Conventions and Exhibitions) industry and the local economy. The Economic Contribution Assessment Report, conducted by professional services firm KPMG Transaction Advisory Services Limited, reveals that exhibition and conference events held at AsiaWorld-Expo contributed around HK$13.4 billion to the local economy in 2010. The 25% increase over 2009 followed the positive momentum from the success of the record-breaking ‘River of Wisdom – Animated Version of the Riverside Scene at Qing Ming Festival’ Exhibition. This economic success likewise translated into significant job opportunities, with over 26,000 full-time jobs generated by AsiaWorld-Expo in 2010.
Key Findings:
AsiaWorld-Expo continues to add tremendous value and significant benefits to Hong Kong's economy by contributing expenditure effects to and providing jobs for the MICE industry as well as other service industries and supporting sectors including retail; hotel and leisure; food and beverage; stand design and construction; and logistics and freight forwarding.
In addition to reviewing the contributions AsiaWorld-Expo has made to Hong Kong’s economy, the report also provides new insights into the mix of international exhibition visitors and identifies new opportunities for the sustainable development of Hong Kong’s MICE industry and AsiaWorld-Expo.
(1) Exhibitions and conferences held at AsiaWorld-Expo in 2010 made a positive economic impact of HK$13.4 billion, a 25% increase over 2009
Total expenditure effects from exhibitions and conferences at AsiaWorld-Expo have grown steadily since 2006, reaching the peak at HK$13.4 billion in 2010, up 25% on 2009.
Over the past five years between 2006 and 2010, exhibitions and conferences at AsiaWorld-Expo have contributed a total expenditure of around HK$54.2 billion to the city’s economy, maintaining a Compound Annual Growth Rate (CAGR) of 6.5%. This total expenditure was made up of direct expenditure, indirect expenditure and induced expenditure, representing 50%, 30% and 20% respectively.
(2) Yearly Full Time Equivalent (FTE) employment of circa 19,000 – 26,000 was generated from exhibitions and conferences at AsiaWorld-Expo per annum
Full Time Equivalent (FTE) employment amounted to over 26,000 in 2010 alone, representing a CAGR of around 3.4% over the same five-year period.
Direct employment from AsiaWorld-Expo and event organisers accounted for around 3% of total FTE employment, with the remaining 97% provided across various supporting sectors. Of particular note, around 65% of the latter figure was generated in the retail, hotel and food and beverage sectors.
(3) Composition of international exhibition visitors has shifted towards Mainland Chinese who have the highest per capita spending among major regions; Increasing proportion of exhibition visitors from Mainland China is likely to benefit the wider retail sector
Visitor profile has seen a shift in the mix of international visitors from 2006 – 2010. An increasing percentage of international exhibition visitors are from Mainland China, with buyers increasingly seeking to source from abroad.
According to the Hong Kong Tourism Board, overnight MICE arrivals from Mainland China have surged in the first six months of 2011. This upward trend has also been reflected at AsiaWorld-Expo, with Mainland China visitors to the venue accounting for 34% of all international visitors in 2010, compared to 20% in 2006.
Particularly noteworthy is the finding that mainland China exhibition visitors typically have amongst the highest per visit spend of all regions (HK$16,761), around 110% of the average in 2010.
Mainland China exhibition visitors show a higher preference for retail spend compared to visitors from other regions, at the expense of the hotel and food and beverage sectors. Such a shift in the mix of exhibition visitors has increased the employment effect on the supporting retail industry. The employment effect on supporting industries has shifted towards retail.
(4) Government support of Hong Kong and the Pearl River Delta Region, coupled with increasing connectivity such as the development of Hong Kong-Zhuhai-Macao Bridge among others, are expected to attract more visitors from Mainland China
Regarding the industry outlook, increasing connectivity such as the development of Hong Kong-Zhuhai-Macao Bridge among others as well as government support of Hong Kong and the Pearl River Delta Region are expected to further drive growth and attract more visitors from Mainland China, while sourcing activities from Mainland China are also expected to remain strong. Despite developing exhibition industries in Mainland China and other cities in South East Asia region, competition appears to remain limited due to Hong Kong’s different market positioning.
China’s 12th 5-Year Plan - A National Blueprint for the Future of Global Business and AsiaWorld-Expo
The “Outline of the 12th Five-Year Plan for the National Economic and Social Development of the People’s Republic of China” announced by the Chinese Central Government early this year envisions the creation of a dynamic Pearl River Delta (PRD) metropolis that will become a powerful engine of national and global economic growth. Served by a pioneering transportation system linking Hong Kong, Macau and the PRD in a region-wide commute of one hour, AsiaWorld-Expo will enjoy a direct catchment of over 100 million people and emerge as the world’s undisputed gateway to an economic powerhouse with its unique geographical location in the PRD.
(1) AsiaWorld-Expo’s Business Strategy for the next Five Years: Allocating more resources to promote and leverage on its unique geographical location in the 1-hour metropolis radius of the PRD
Allen Ha, Chief Executive Officer, AsiaWorld-Expo Management Limited, said, “The report’s findings are powerful confirmation that AsiaWorld-Expo plays a valuable role in the success of Hong Kong’s MICE industry. Given its healthy growth momentum and the set of unparalleled opportunities ahead, the venue is poised for growth in the next five years. Riding on the enormous opportunities as presented by China’s 12th 5-Year Plan as well as AsiaWorld-Expo’s unique geographical location in the PRD region, we will, along with our MICE partners, embark on a series of promotional roadshows around the cities in the 1-hour metropolis radius of PRD to promote our MICE offerings as part of our business strategy in the years to come.”
(2) Overseas promotion to highlight the market and development potential of the PRD
“The National 12th Five-Year Plan, which emphasises the Central Authorities’ support for deepening the economic integration between the Mainland and Hong Kong, especially the Guangdong-Hong Kong co-operation, offers unprecedented opportunities for our service industry, including our MICE sector. Leveraging on our proven strengths as a MICE hub, including our prime location, our world-class infrastructure and professional services, we can support the development of the Pearl River Delta into a world-class metropolis, by serving as a global platform for exhibitions and events in the Asia Pacific region,” said Anthony Lau, Executive Director, Hong Kong Tourism Board. “Located right next to our award-winning airport, AsiaWorld-Expo enjoys close proximity to the Pearl River Delta and a track record of staging a wide range of world-class exhibitions and events. Complemented by other facilities on Lantau Island, including Hong Kong Disneyland, Ngong Ping 360 and the upcoming Hong Kong-Zhuhai-Macao Bridge, AsiaWorld-Expo is set to play an even greater part in consolidating Hong Kong’s position as the sourcing hub and trade fair capital of Asia.”
Indeed, AsiaWorld-Expo’s enviable location at the very heart of global business has been given a big thumbs-up by leading event organisers. Chris Lee, Event Director of I.I.R. Exhibitions Limited who made the Asian debut of Vitafoods Asia 2011 last week at AsiaWorld-Expo remarked, “With its strategic location, AsiaWorld-Expo is the definitive destination for our inaugural Vitafoods Asia 2011 as well as for exhibitors and buyers wanting greater exposure to the fast-growing China and Asia market.”
In November 2011, the venue will also play host to Winefuture Hong Kong (http://www.winefuture.hk), a conference and exhibition that will bring together the most important personalities in the world of wine, including critics Robert Parker, Jancis Robinson, Gary Vaynerchuk as well as the prestigious film director and winemaker Francis Ford Coppola.