Hong Kong's Exhibition Industry Contributes US$4.6 Billion to Economy
The Hong Kong Exhibition and Convention Industry Association (HKECIA) reported results of its biennial economic impact study report.
Compiled by KPMG Transaction Advisory Services, the report shows Hong Kong’s exhibition industry contributed US$4.6 billion towards the local economy in 2010, compared with US$3.9 billion in 2008, or equivalent to 2.1 percent of Hong Kong’s total GDP.
Direct expenditure, which covers expenditure specifically on exhibitions and exhibition-related activities, amounted to US$2.3 billion or 50 percent of the total expenditure.
Business expenditure of international and local exhibition visitors contributed 55 percent, with the remaining 45 percent generated by exhibition organisers and exhibitors.
In terms of expenditure by exhibition visitors, US$1.3 billion was recorded in 2010, with 90 percent contributed by international visitors.
The food and beverage, retail and hotel sectors were reportedly the largest recipients of direct visitor expenditure, accounting for more than 74 percent, or US$936 million.
Business-related expenditure amounted to US$1.04 billion in 2010, a compound annual growth rate of 22 percent from 2008.
Daniel Cheung, the chairman of HKECIA, said, “Exhibitions are important factors in raising Hong Kong’s international status. Currently, Hong Kong hosts five of the world's largest trade exhibitions and seven of Asia's largest trade exhibitions."
He added, "Record-breaking events like this reinforce and publicise Hong Kong’s profile as a reliable, successful and dynamic place to do business of any kind, creating a momentum which keeps Hong Kong high in global public awareness as an ideal business location.”
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.