Hong Kong has been through tough times before and has shown it is stronger and wiser for it.

No one knew what to expect from the Hong Kong exhibition industry in the first half of 2009. As Daniel Cheung, chairman of the Hong Kong Exhibition and Convention Industry Association (HKECIA) recalls, show numbers were conservative with no big increases.

“Visitor numbers from Europe and the US were down, along with the number of booths, but Chinese buyers were up,” he says. “The second half was very strong and figures bounced back, even the number of booths. When we benchmark our numbers against others in the region we are doing quite well.”

Despite the drop in long-haul visitors, overseas buyer attendance fell by just 3.7 per cent overall, buoyed by a 24 per cent surge from mainland China.

Good results
The upswing is reflected in the HKECIA 2009 survey results, which indicate the market is already well into a recovery. Cheung is pleased with the results and attributes the success to the industry having learned from the effects of the Sars outbreak in 2003 and having a good sense of crisis management.

“The industry’s alarm system was triggered well before the global economic downturn, so Hong Kong exhibition organisers were already looking for new markets and exhibitors,” he says. The strategy was to build participation from emerging markets with a focus on China, as it was less impacted by the financial crisis and has a growing domestic consumption rate.

A range of initiatives were promoted, including free hotel rooms or travel subsidies for mainland Chinese exhibitors and visitors. An aggressive advertising campaign also ran in trade magazines and daily newspapers, as well as through direct mailings.

Meetings & Exhibitions Hong Kong (MEHK) also assisted exhibition organisers in attracting trade visitors. “We give added value to exhibitors by helping them find buyers,” says Gilly Wong, general manager of MEHK. “We coordinate with the travel trade to give buyers coming to Hong Kong a package of offerings, such as exclusive rates for registered buyers on Cathay Pacific and attractions like Ngong Ping 360, which were well received.”

MEHK also helps organisers find relevant buyers through its network of offices around the world by lining up meetings with related association bodies. What also helped significantly is Hong Kong’s branding as the promotional platform in the marketplace.

Global gateway
Senior vice-president of UBM Asia Michael Duck says Hong Kong’s shows are critical for small- and medium-sized enterprises (SMEs).

“People need to do business so they come to trade exhibitions to show their presence,” he says. “Many companies see Hong Kong as their best international platform because they may have trouble getting visas to places like the US and Europe.

“There are consistent growth rates in China and India ranging from eight to nine per cent of GDP, while Hong Kong is at three to four per cent. However exhibitors from the US and Europe are seeing negative growth rates and so it’s only logical they come here. Hong Kong is attractive to them.”

Chinese exhibitors see Hong Kong as its gateway to the world, as Cheung explains. “Chinese companies are keen to register for Hong Kong trade events,” he says. “For some shows, there are over 2,000 such companies on the waiting list. While we can’t compete with China in terms of space, we have the software, service and efficiency.”

Duck says the Hong Kong exhibitions industry will continue to grow alongside its industry peers. “We’re seeing new shows here being launched like the Asian Seafood Exposition in September.”

In the meantime, Cheung says Hong Kong organisers are exploring the market and promoting their shows. With such an upbeat tone within the industry and key data supporting it, 2010 numbers are expected to look even better.