A split has formed within Hong Kong’s exhibition industry as it considers how best to maintain the city’s status as an exhibition hub amid increasing regional competition.

On the one side is Hong Kong Trade Development Council (TDC) and the SMEs and manufacturing associations it represents.

On the other stands private-sector stakeholders led by Global Sources, a private trade show organiser whose China Sourcing Fairs anchor AsiaWorld-Expo (AWE) and who has accused TDC of anti-competitive behaviour.

This is not the first time TDC’s dominance has been brought into question. However, Global Sources is Hong Kong’s largest private show organiser and is threatening to move its shows elsewhere unless it sees a more competitive business environment established.

Recent history
Since the opening of Hong Kong Convention and Exhibition Centre (HKCEC) in 1988, Hong Kong has transitioned from a manufacturing hub to a global trading platform. Exhibition industry players believe that while TDC has been successful in its initial task of stimulating the industry to assist local manufacturers, its multiple roles as promoter, government-backed show organiser and owner of HKCEC have created an environment that deters new private organisers and shows from entering the local market.

Of the 30 shows it will organise this year, just four will be held at AWE – a major venue that has been under-utilised since its opening in 2005.

“TDC is so dominant it is hard to compete,” says Sarah Benecke, executive director of Global Sources. “Further, it deters exhibitors from participating in shows at AsiaWorld-Expo by offering prime locations and discounts to move to their fairs to HKCEC."

Competition woes
One of the main criticisms levelled at TDC is that it competes against potential and existing shows by staging its own.

“TDC has a history of copying trade shows originally developed by private organisers,” says Benecke. “For example, the Baby and Children’s Products show we launched in April 2008 was quickly followed by TDC’s announcement of its new Baby Products show in January 2009.”

Michael Duck, senior vice-president of trade show organiser UBM Asia, agrees that these kinds of practices are detrimental to the industry’s development. He says: “We want to bring in new shows to Hong Kong, we don’t want copycat shows. Organisers spend millions on building a show’s profile, developing a buyer database and exhibitor and show promotions.”

Proposed solution
Global Sources suggested in 2009 that similar sourcing fairs held at the same time be marketed under ‘one fair, two venues’.

Paul Woodward, regional director of UFI, the global association for the exhibition industry, says there are other cities in the world where the largest fairs run over two venues. 

“Although this does give additional logistical headaches to organisers, it can work,” he says. “‘One fair, two venues’ has already proven a viable concept for Hong Kong by the UBM Asia September Jewellery Fair.”

TDC has been reluctant to adopt this model as it would like to see its Mega Show sourcing fairs become the biggest in the world – a goal it believes will require the Phase 3 expansion of HKCEC.

However, insiders believe the industry would be better served in the long-term by encouraging more private organisers to hold shows in Hong Kong.

Duck says: “Do I see TDC as a competitor? It is difficult to say no, and it is difficult to say yes. TDC needs to promote both its own shows and those organised by others. Its current position does not deter private show organisers from bringing events to Hong Kong, but the city would be viewed as more attractive if there were more major players here.”