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Singapore aims to be convention hub of Asia

SINGAPORE International Convention and Exhibition Centre, which will be officially opened today, is expected to break even in three years.

As part of the huge Suntec City project, which is being developed by a consortium of property tycoons including Hong Kong's Li Ka-shing, Cheng Yu-tung and Lee Shau-kee, the centre cost S$650 million (about HK$3.55 billion).

It has a gross floor area of 98,887 square metres.

'In the first three years it is difficult [to make a profit], especially in our business,' said Klaus Jurgen Scholz, the centre's managing director. 'After three years, we are confident that we will break even.' Mr Scholz said the centre had secured bookings for 50 per cent of its facilities this year.

He expected bookings to rise to between 60 per cent and 70 per cent next year and 80 per cent in 1997.

Mr Scholz said the project was a private investment and as such received no subsidies from the government.

But he added the government indirectly supported the project.

'The activities of our centre are important to the long-term development of Singapore as a regional service centre,' Mr Scholz said.

'Singapore has excellent infrastructure, but it is getting very expensive in terms of labour and real estate.

'It can survive in the long term only on service quality know-how, which can be supplied to the region,' he said.

The convention and exhibition business is part of the tourism industry.

That industry contributed five per cent to Singapore's gross domestic product (GDP) last year.

Tourism is expected to make up five to seven per cent of GDP this year.

With the opening of the centre, Singapore hopes to compete with Hong Kong, which is also striving to become the convention and exhibition hub of Asia.

Mr Scholz said low rentals for convention and exhibition space would put Singapore at an advantage.

He said that the rates at the Singapore International Convention and Exhibition Centre were between 40 per cent and 50 per cent of those charged by the Hong Kong Convention and Exhibition Centre.

The Brussels-based Union des Associations Internationales (UAI) ranked Singapore sixth in the world for hosting meetings last year, the highest ranking in Asia.

Hong Kong ranked 13th. Singapore has 18 out of the 35 exhibitions held in Asia approved by the Union des Foires Internationales, a Paris-based independent association of international exhibitions.

Hong Kong has secured approval for one exhibition.

Mr Scholz said that Singapore and Hong Kong could play a complementary role in the convention and exhibition business.

While Hong Kong continued to serve as a gateway to China, Singapore would benefit from its proximity to Indochina, India and the Middle East, he said.

Mr Scholz said Hong Kong was centred on consumer-related products, while Singapore concentrated on technology and engineering.

'By 1997, I am very confident that the market volume will increase enough for both places to benefit,' said Mr Scholz.

The Singapore Convention and Exhibition Centre offers 28,000 sq metres of convention and exhibition space, with a column-free convention hall seating up to 12,000 delegates.

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