Smokefree Centre

In line with global norms and in a proactive move to support a healthy lifestyle for visitors and staff members alike, from 1 January 2006 the HKCEC became a completely smoke-free environment. The Centre began an awareness campaign about the change six months earlier, sending out flyers, hanging prominent banners, and giving the move extensive coverage on the HKCEC website. The strategy gave exhibition organisers, exhibitors and buyers plenty of time to become aware of the change and take any steps necessary to prepare for it.

The response to the move has been very positive. Fully supported by the Hong Kong Exhibition and Convention Industry Association, individual users have also been quick to express their appreciation for the change. Cliff Wallace, Managing Director of the HKCEC, says that all the feedback he has received has been supportive. "Most of our clients actually prefer the smoke-free HKCEC," he says, "because they know it caters for the health and comfort of the greatest number of people."

Popularity Stakes

Each year CEI Asia Pacific, a leading regional trade magazine, conducts a survey of key players in the MICE (meetings, incentive, conferences and exhibitions) industry. In the four years since the survey was launched back in 2002, one venue has been selected year in and year out as the "most popular convention and exhibition centre" in the Asia Pacific region. Despite the proliferation of new exhibition facilities over recent years – and the expansion of many existing ones – only the HKCEC has consistently captured the imagination of exhibition professionals. "Of course we have many external factors in our favour," concedes Monica Lee- Müller, the HKCEC's Director of Business Development. "Just being here in Hong Kong, one of the world's freest economies and best travel destinations, gives us an immediate edge." But she adds, "All this would be of no use if we couldn't offer our customers everything they want from a high-end exhibition centre. What's more, the levels of dedication and standards of service embraced by HKCEC staff are regularly a cut above what you'll find in most other exhibition venues, anywhere in the world."

Doing Business on the Road...

In an increasingly globalised world there's still no substitute for doing business face to face. That's why exhibitions are still a crucial marketing tool, and also why senior executives from the HKCEC have spent so much time on the road (or in the air!) over recent months. Some of the best places for promoting the HKCEC's global advantages to potential clients are at major exhibition industry events that from year to year may be held anywhere from Moscow to Madagascar, from Calgary to Calcutta. These events act as crucial exchange platforms for global industry players, and the HKCEC makes sure its representatives are there to showcase what Hong Kong and the Centre have to offer to international event organisers.

That means some serious travelling for certain HKCEC executives. In recent months, for example, Managing Director Mr Cliff Wallace and Director of Business Development Mrs Monica Lee-Müller represented the Centre at the International CEO Forum, held in January in Monte Carlo, where we also sponsored a special networking luncheon. In February a representative from the HKCEC was in Paris, attending the ICCA Workshop and meeting up with potential clients. In early April the destination was the SISO CEO Summit in Charlotte, North Carolina. And in between these visits, the HKCEC itself hosted an international exhibition industry event. The UFI Open Asia Pacific Seminar, held on 21 and 22 February, brought together nearly 200 regional and international delegates including many venue operators and organisers who had the chance to experience first-hand the advantages of holding an exhibition at the Centre.

These are just the first in a busy round of similar 'platform' events around the world during the remainder of the year. HKCEC representatives were off to Germany in May for IMEX, and to Melbourne, Australia in early June for AIME. The acronyms continue with the UFI Open Summer Seminar in late June in Helsinki, the SISO Executive Conference in Connecticut in the US in August, and the aeo Conference in the UK in September.

As you will have gathered, HKCEC executives tend to be well-travelled! But the benefits that flow from all this travelling are clear: these are events where the movers and shakers of the exhibition industry congregate, and to have our representatives there and actively involved in sponsoring or running these events is a superb way to keep a high-profile presence on the world stage-something that turns into business for Hong Kong and the HKCEC.

Upcoming industry events that HKCEC representatives plan to attend:

	Event	Date	Place
	UFI Open Summer Seminar	26-28 June 2006	Helsinki, Finland
	2006 SISO Executive Conference	14-16 August 2006	Hartford, CT, US
	aeo Conference	7 September 2006	London, UK

Hong Kong Exhibitions: Billion Dollar Business

Recently the Hong Kong Exhibition and Convention Industry Association (HKECIA) commissioned professional services firm KPMG Corporate Finance Ltd to assess the overall value of Hong Kong's exhibition industry to Hong Kong. KPMG set to work on the study in 2005, and the recently published results may come as a surprise for many, revealing as they do that Hong Kong's exhibition industry contributed a phenomenal HK$19 billion to Hong Kong's economy in the 2004 calendar year.

This figure of HK$19 billion can be broken down into three main categories. The first and most obvious one is direct expenditure, which makes up around HK$9.5 billion of the figure. This includes money spent directly by exhibition organisers, exhibitors and visitors not only on exhibitions but also on such essentials as food, accommodation and shopping.

The second category is that of indirect expenditure, i.e. the money spent by suppliers of the exhibition industry when they purchase goods and services from elsewhere. That figure, according to the survey, came to HK$5.7 billion in 2004, while a further HK$3.8 billion arose from the category of 'induced expenditure'.

All this spending contributed to a tax take for the Hong Kong government estimated at around HK$710 million for 2004. In addition, exhibition activity here provided a boost to employment figures. The study says that the industry's activities in 2004 would have provided employment equivalent to 47,000 full-time jobs across several industries.

When comparing the size of a country's exhibition industry to the expenditure effects it generates, Hong Kong performs exceptionally well against outstanding rivals. The exhibition industries of UK and Germany, for example, generate expenditure effects of 0.8% and 1.0% respectively as a percentage of GDP. In Hong Kong, this figure touches 1.5%, despite the much smaller scale of the exhibition industry here.

The results of the report are important for helping government and industry figures recognise the significance of the exhibition industry for Hong Kong. Visitors to exhibitions, for example, stay longer in Hong Kong than average overnight tourists and spend considerably more – 2.4 times as much. That means that although exhibition visitors accounted for just 3.3% of overnight tourist arrivals in Hong Kong in 2004, they were responsible for around 7.8% of overnight tourist spending. In other words---exhibitions generate profits for nearly everybody!

	Area	Benefits
	Expenditure effects	HK$19 billion
	Fiscal impact	HK$0.71 billion
	Employment effects	47,000 FTE
	GDP of Hong Kong SAR	HK$1,300 billion
	Expenditure effects expressed as a percentage of GDP	1.5%

Source: HKECIA Economic Impact Study report.
For more information, please visit the HKECIA website: http://www.exhibitions.org.hk.

Industry Veterans Stay at HKECIA Helm

On 26 May the HKECIA celebrated its sixteenth anniversary with a dinner for members, following on from the Association's annual general meeting, where elections took place for the posts of Chairman, Vice-Chairman, and Executive Committee members. Returning as Chairman for a third term at the helm of the HKECIA is Mr Stanley Chu who is also Chairman of Adsale Exhibition Services. Backing him as Executive Vice Chairman is Mr Daniel Cheung, General Manager of Hong Kong Exhibition Services Ltd. The other two Vice Chairmen elected were Mr Sam Xie, Managing Director of CIEC Exhibition Company (Hong Kong) Limited, and Mr Javed Khan, General Mangaer of Kenfair Internbational (Holdings) Ltd. All these officers began their new two-year terms from 26 May 2006.

For more information, please visit the Association's website at http://www.exhibitions.org.hk.