AsiaWorld-Expo Brings in More Than HK$13.4 Billion to Hong Kong Economy in 2010
Exhibition and conference events held at AsiaWorld-Expo contributed approximately HK$13.4 billion to the local economy in 2010, according to the Economic Contribution Assessment Report conducted by professional services firm KPMG Transaction Advisory Services Limited.
The results were a 25-percent increase, compared with 2009, and translated into significant job opportunities, with more than 26,000 full-time jobs generated by AsiaWorld-Expo last year.
“The report’s findings are powerful confirmation that AsiaWorld-Expo plays a valuable role in the success of Hong Kong’s MICE industry,” said Allen Ha, CEO of AsiaWorld-Expo Management Limited.
Events held at the venue provide income and 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.
There were several key findings from the report:
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 percent, compared with 2009.
During the past five years, 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 percent.
Direct employment from AsiaWorld-Expo and event organizers accounted for around 3 percent of total Full Time Equivalent employment, with the remaining 97 percent provided across various supporting sectors. Of particular note, around 65 percent of the latter figure was generated in the retail, hotel and food and beverage sectors.
Visitor profile has seen a shift in the mix of international visitors from 2006 to 2010. An increasing percentage of international exhibition visitors are from Mainland China, with more buyers seeking to source from abroad.
Mainland China exhibition visitors typically have amongst the highest per visit spend of all regions (HK$16,761), around 110 percent of the average in 2010.
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 drive even more growth and attract more visitors from Mainland China, while sourcing activities from Mainland China also are expected to remain strong.
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 earlier 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 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 more than 100 million people, according to venue officials.
“Given its healthy growth momentum and the set of unparalleled opportunities ahead, the venue is poised for growth in the next five years,” Ha said.
He added, “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 one-hour metropolis radius of PRD to promote our MICE offerings as part of our business strategy in the years to come.”
Until recently, the opportunity to have a celebrity attend an event, attach themselves to a name-brand or endorse a certain product or idea was untouchable. The thought of paying a person to promote a product was seen as something only Fortune 500 companies could afford. Social media has changed all that with brands and businesses utilizing celebrity influencers to connect directly with their demographics and increase sales and profits.