Hong Kong’s exhibition industry responsible for more than 2% of local GDP

Hong Kong’s exhibition industry contributed HK$52.9 billion (US$6.8 billion) to the region’s economy in 2016 in expenditure effects, equivalent to 2.1% of local total GDP according to newly released findings from the Hong Kong Exhibition & Convention Industry Association (HKECIA).

Gauging the contribution of Hong Kong’s exhibition industry to the city’s economy, HKECIA’s latest biennial Economic Impact Study also reaffirmed the significant economic benefits of the exhibition industry to the city, with international exhibitors spent on average 75% more than general overnight tourists in 2016.

Total expenditure generated by the exhibition industry remained at the same level as that of 2014 despite continuing global economic uncertainty. Just over half of the total expenditure generated by the industry, HK$26.5 billion (US$3.4 billion), represented direct expenditure made by visitors, exhibitors and organisers.

International exhibitors and exhibition visitors are high-value groups by comparison with general overnight tourists, according to the Study. It shows that international exhibitors and exhibition visitors continued to significantly outspend general overnight tourists, on average spending around 75% and 66% more respectively in 2016.

From 2014 to 2016 the average spending of overnight tourists coming to Hong Kong declined quite significantly, by 17%. By contrast, the Study shows that the average spending of international exhibitors and exhibition visitors, while also declining, fell by less than that for overnight tourists, at 10% and 14% respectively. This reinforces the fact that business travellers attracted to Hong Kong by the exhibition industry are high-value individuals who are important contributors to the economy.

The Hong Kong Special Administrative Region (HKSAR) Government also benefits directly from the exhibition industry, according to the Study. In 2016, the fiscal benefits contributed by the exhibition industry through the various taxes imposed by the government on exhibition activities and participants amounted to HK$1.9 billion (US$244.2 million).

Introducing the findings, HKECIA Chairman Stuart Bailey advised “this latest data comes as a timely reminder of the importance of the exhibition industry to Hong Kong, at a time when decisions need to be made about the support it is given going ahead.

“We did expect to see a drop in some areas as the global economy has not yet fully rebounded.

“The findings clearly show the massive benefits delivered at the levels of cash spending, employment opportunities, and spin-off effects for related businesses and supporting industries, and for government income. We must do our best to secure international exhibitors and exhibition visitors who are proven high spenders, and to ensure that Hong Kong continues to have the capabilities to attract and host large and significant exhibitions in the years to come.”

HKECIA has also welcomed the latest HKSAR Government’s Policy Address recognising the importance of further supporting Hong Kong’s convention and exhibition industry by expanding the capacity of event space in the city.

The Association supports its proposal to demolish and redevelop the three government buildings in Wan Chai to build a new convention and exhibition venue that can be connected to and integrated with the existing Hong Kong Convention and Exhibition Centre (HKCEC) which will add an estimated 23,000 metre² of convention and exhibition space.

According to the Demand Study for New convention and Exhibition Facilities in Hong Kong conducted by AMR International in 2015, it is estimated that by 2028, around additional 132,000 metre² of convention and exhibition space would be required to capture all unmet demand during peak months

HKECIA was established in 1990 to promote Hong Kong as a world-class exhibition and conference destination and the trade fair capital of Asia Pacific. 

Images: Hong Kong harbour by night (top), the Hong Kong Convention and Exhibition Centre's management team (middle) and a concert at Asia World Expo Hong Kong (below).

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