And would the local economy benefit if the government went ahead with plans to construct a new exhibition facility at the airport by 2005?

The centrepiece of Hong Kong's exhibition industry, the Hong Kong Convention and Exhibition Centre (HKCEC), juts out into the Victoria Harbour with a splendour that reflects its importance to the local economy.

Constructed to coincide with the handover ceremonies in 1997, the five-storey HKCEC offers 60,000 square metres of prime exhibition space in the heart of the city.

Allen Ha Wing-on, director of business development for the private management group that runs the HKCEC on behalf of the quasi-governmental body, the Trade Development Council, says the venue is at present operating at 50 per cent utilisation.

That is not bad, he says, viewed against comparable facilities in neighbouring centres such as Singapore.

'You cannot compare this with the hotel occupancy rate because these are totally different animals,' Mr Ha says. 'We are looking into the future and proactively bringing in new business to the HKCEC.'

By all accounts the HKCEC is doing a good job. Overall, the facility has maintained its position as the top destination for trade exhibitions in the region. According to a survey by Singapore-based CEI Asia Pacific magazine, 87.5 per cent of respondents to an informal survey ranked the HKCEC as among their top three preferred exhibition venues.

Singapore's Suntec Singapore and International Convention and Exhibition Centre was second with 71.4 per cent, while the Bangkok International Trade and Exhibition Centre earned 35.7 per cent of the vote.

Although Hong Kong remains the preferred destination, the other two venues have gained ground, with Suntech up from 54 per cent and Bangkok's ITEC up from 27 per cent in 2001.

Mr Ha says Hong Kong has maintained its lead largely because of excellent infrastructure, efficient banking and communications services, and, perhaps most important of all, its reputation for great restaurants and entertainment.

'They all add up to make it work, it is not just one piece of the equation,' Mr Ha says.

Another factor that sets Hong Kong apart is its geographic location at the heart of Asia.

This helps explain why 50 per cent of the exhibitors are from outside Hong Kong.

'That is unique, and shows that our exhibitions are truly international,' Mr Ha says.

Michael Duck, senior vice-president of exhibition organiser CMP Asia, agrees that Hong Kong has the right mix.

'Hong Kong's main draw is its geographic position in the Asia Pacific region,' Mr Duck says.

'It is a neutral apolitical position for reaching trade partners on an equal basis throughout Asia Pacific. We have half the world's population within a five-hour flight from here, and we are equidistant between Singapore and Japan.

'These are very big pulls, to be able to utilise Hong Kong as a trade fair forum for many different industries.'

Being at the doorway to the Pearl River Delta also puts Hong Kong at the centre of the action.

International buyers are often curious about China's fast-rising consumer markets.

Hosting an event in Hong Kong provides opportunities to arrange day trips to visit retail centres and manufacturing facilities across the border.

So popular are the day trips that most exhibition organisers schedule their trade shows to overlap with weekends so that participants can visit Shenzhen and neighbouring areas at their leisure.

The trend also works in the opposite direction, with a growing number of mainland exhibitors travelling to the SAR to demonstrate their products. The result is a greater range of exhibitors, which becomes a key draw for international visitors seeking the widest possible exposure to the products available in a specific sector.

'We distinguish ourselves from our competitors in terms of our portfolio of inter-trade exhibitions,' says Mr Ha, calling upon the government to liberalise visa rules to permit easier entry by mainland participants.

Highlights of the Hong Kong exhibition calendar include one of the world's top three jewellery fairs, as well as trend-setting beauty and fashion shows that rank as the most important regional events for product sourcing.

Looking ahead, conference organiser CMP Asia believes the exhibition industry is in for long-term growth. As long as Hong Kong maintains its liberal visitation rules, the number of international visitors will keep rising, Mr Duck says.

He believes trade visitor numbers will be strong in the next few quarters despite the economic downturn, as Americans are expected to return to international events following the terrorist attacks of September 11.

Asked whether he thought Hong Kong needed a second government-owned exhibition centre, Mr Duck was guardedly optimistic.

'I believe that in time the exhibition centre in Wan Chai will be maxed out,' Mr Duck says.

'Hong Kong's position as a trade centre could well be enhanced by a new exhibition centre, but it is a lot of work to keep exhibition organisers coming to Hong Kong.'

Graphic: BEST1gsp