ITU seeks extra trade show funding
Prestigious telecommunications event could end up costing more than the $70m budgeted by the government
The International Telecommunications Union (ITU) wants increased public funding and firm financial commitments from corporate sponsors if Hong Kong is to trump Geneva to host the 2006 Telecom Word trade show - the most prestigious event on the industry's international calendar.
Local officials and ITU executives are set for tough talks after last week's decision by the United Nations-backed body to choose Hong Kong as its preferred venue for the quadrennial telecommunications show, pending both sides agreeing on financial terms.
In December last year, Secretary for Commerce, Industry and Technology John Tsang Chun-wah presented legislators with a proposed $70 million bill for hosting the event, a figure that could escalate should the ITU be successful in securing a better deal.
'The Finance Committee of the Legislative Council has approved in principle this [Telecom World] expenditure,' said a spokesman for the bureau's commerce and technology branch.
'The actual financial commitment will be decided after our final negotiations with the ITU, which will take place shortly.
'We will also seek large corporate sponsors to reduce the total expenditure.'
The ITU Telecom Board, an advisory body within the agency, described Hong Kong's earlier financial package as 'not sufficiently attractive'. Last week, it said ITU secretary-general Yoshio Utsumi would lead the negotiations, aiming for 'the most favourable terms and conditions'.
Geneva has hosted the event for more than 30 years since its inception but, despite building expensive new conference facilities last year, the city has come under fire for high costs and inflexibility.
In provisionally choosing Hong Kong over competitors including Milan, Istanbul and Algiers, the ITU last week cited the 'enormous market opportunity' in China and other Asian economies.
It said the interests of technology vendors and regional telecommunications operators would also be best served, adding that Hong Kong offered cheaper rental, hotel and logistics services.
The government had also guaranteed minimum exhibition space purchases by mainland firms.
The main venue would be the International Exhibition Centre to be built at Hong Kong International Airport. Its first phase will offer about 710,000 square feet of space that the ITU will sub-let to individual exhibitors.
The government spokesman declined to reveal details of guaranteed exhibitor purchases, pending negotiations with the ITU.
A key plank in the government's argument for stumping up more public funds is likely to be the wider economic benefits expected to flow from the event - official estimates suggest it will attract 100,000 overseas visitors, generating 'economic benefits' of about $1.2 billion from exhibition space rentals and hospitality-related spending.
