Readers Speak: Exploding Hong Kong Myths

Gary Tufel -- Tradeshow Week, 3/12/2007

This year, the one-time British colony of Hong Kong celebrates the 10th anniversary of its return to Chinese control. It has made a reputation for itself as a regional and world leader in business in general, and in exhibitions in particular. An increasing number of international businesspeople look to both Hong Kong and mainland China.

However, those who have yet to visit, or participate in a Hong Kong exhibition, can still be uncertain about what to expect. With that in mind, Contributing Editor Gary Tufel asked some veterans for notions that newcomers should disregard.

Question: What are the the most common misperceptions about Hong Kong and its exhibition scene?

"The most common mistake these days appears to be for people to assume that Hong Kong is now the same as the rest of China. This couldn't be further from the truth. Hong Kong operates under a completely different legal environment and retains its own, fully convertible currency.

"It is, in many respects, a simpler — if generally more expensive — place to do business. For most people, it is going to be a much more familiar environment than most places in the rest of China. Because of that, it remains an excellent starting point for new businesses in Asia, with the number of risks involved in launching any new venture perhaps more under control than in most other places."

Paul Woodward, Manager, Asia Pacific office, UFI — the Global Assn. of the Exhibition Industry

"The misperceptions about Hong Kong are, first, that Hong Kong is another Chinese city along with the likes of Shanghai and Beijing. In fact, Hong Kong is the most international city in China.

"Second, that access from mainland China to Hong Kong is difficult. Now the opposite is true. Take ITU Telecom World 2006 and the China Sourcing Fairs as examples. The ITU event in December last year saw a record, with almost one-third of exhibitors coming from mainland China. Half of the exhibiting companies that were featured in the China Souring Fairs in October last year were from mainland China.

"Third, that it is expensive in Hong Kong. In fact, with its global reach and international network, it is value for money (spent by) the organizers, exhibitors and visitors alike."

Allen Ha, Deputy CEO, AsiaWorld-Expo Management

"Among several misconceptions, two contradictory ones stand out: Some foreign exhibition organizers think Hong Kong is a venue only for Asian or international events, not 'Chinese' events, which should be on the mainland. Others consider the city too 'Chinese' to hold major global events in. Both are often wrong. With the right industry — for example, the international trade in high-turnover design-driven consumer products — Hong Kong easily meets both these criteria as a venue.

"For CMP Asia's events in the city, our biggest visitor group is from mainland China, buying from fellow mainlanders but also seeking the latest designs of foreign goods. Conversely, our big shows also attract 45 percent non-Chinese participants, coming from all over the world to both buy and sell, as much to and from each other as to and from participating Hong Kong and mainland Chinese."

Peter Sutton, President and chief executive, CMP Asia

"The biggest misperception for exhibitors is that they think that they can reach a substantial amount of mainland China buyers by exhibiting in Hong Kong. Thresholds are still in Hong Kong in the form of habits, procedures and costs, which make it much more difficult to visit a Hong Kong show compared to Guangzhou, Beijing or Shanghai.

"There's the same misperception for exhibition organizers, who prefer the convenience of organizing in Hong Kong, which is quite hassle-free and where you do not automatically need a local partner, as you do when setting up a show in mainland China."

Jime Essink, CEO, VNU Exhibitions Europe, President, VNU Exhibitions Asia

"Most show organizers and exhibitors expect Hong Kong costs to be low, but things are not as inexpensive as they may think. It could be that because Chinese labor and manufacturing are cheap, the perception is that in Hong Kong, goods and services are not as expensive as elsewhere. But that's not the case. Hotel rooms, for instance, are in great demand and cost as much as in New York. Exhibition space rentals are high, and some contracting services are high as well."

Steve Sind, President and CEO, Global Event Strategies

"(People think) Hong Kong's costs will be high. They are generally high but very much in line with major cities around the world, and are compensated by the extra value. Hong Kong's exhibitions are among those of the highest standards in the world. This generates very high grades of exhibitors and buyers, and there is an 18-year track record of growth and success in the exhibition industry.

"Additionally, the city delivers a level of service in hospitality, lodging, transportation, banking and leisure amenities that is collectively superior to any city in the world. Finally, the exhibition venue is world-class in every respect, is centrally located and possesses levels of service superior to most any in the world. ...

"English is very much a second language, and most of the signage is bilingual. Transportation systems are easy to use, very convenient and accessible, and very inexpensive. The international airport is undoubtedly the most user-friendly of any in the world. Hong Kong is truly a world city."

Cliff Wallace, Managing director, Hong Kong Convention & Exhibition Centre, Chairman, Hong Kong-Shanghai Venue Management (Zhengzhou)

"(One misconception is) the Hong Kong trade fair market is only for large organizers. There actually could not be a more business-friendly trade fair center in Asia for all levels of organizers, no matter what their size, who can gain a truly Asia-Pacific reach — and even further geographically — for their visitor base.

"Those organizers who wish to reach the maximum potential for their profile have every positive in their favor, from easy communication links in terms of air travel and hi-tech connections, to every grade of hotel cost, to professional stand contractors, to welcoming venue management who well understand the market, to little or no taxation, to an effective professional staff market, to great entertainment and, most important of all, the freedom of movement of capital, which attracts all comers."

Michael Duck, Senior vice president, CMP Asia

"Exhibitions have been running in Hong Kong for decades, and the market is very mature. Plus, Hong Kong is very small and transparent. The infrastructure is well-developed; transportation and communications are efficient and inexpensive. I think if there are any preconceived notions about doing exhibitions in Hong Kong, they are likely to be very positive."

Kate Newman, Head of corporate communications, Asia Pacific Messe Frankfurt (Hong Kong)