Exhibitions Provide Benefit to Hong Kong
By Gary Tufel -- Tradeshow Week, 3/20/2006
Exhibitions were a strong contributor to Hong Kong's local economy in 2004, according to a study commissioned by the city's Exhibition & Convention Industry Assn.
KMPG Consulting's study found that exhibitions contributed H.K. $19 billion (U.S. $2.4 billion), about half of that in direct expenditures by exhibition organizers, exhibitors and visitors. They also generated around H.K. $710 million (U.S. $91 million) in tax revenue in 2004.
Although Hong Kong's exhibition industry is relatively small, it outperforms that of many countries in terms of its contribution to the overall economy. For instance, expenditures on exhibitions amounted to 1.5 percent of gross domestic product, compared to 1 percent in Germany.
The 20 recurring trade exhibitions held in the first seven months of 2004 and again in 2005 demonstrated a 7.1-percent average increase in attendance. Visitors from mainland China and other East Asian countries primarily fueled the growth.
Michael Duck, senior vice president of CMP Asia, said the study's results confirm Hong Kong's leading role for Asia-Pacific regional shows. "Hong Kong's unique location and free-enterprise spirit with strict laws regarding banking, compliance and intellectual property make it especially attractive to companies for exhibiting and visiting," Duck said.
The KMPG study suggested other findings about the Hong Kong exhibition industry:
- It is responsible for 47,000 full-time jobs, including 1,600 jobs directly provided by event organizers and venue providers.
- Business visits were 1.2 times longer and business visitors spent 2.4 times more per trip than the average tourist.
