Show me the money

Whilst Hong Kong might struggle to live up to the ambitious title "Events Capital of Asia", there are still a handful of annual events that catch the public's imagination - and which sponsors find equally appealing. Signature events such as the Hong Kong Rugby Sevens attract loyalty from their sponsors and corporate supporters matched only by the devotion of rugby fans who make their annual pilgrimage to Hong Kong Stadium. Other events such as the Hong Kong Open golf tournament, the Macau Grand Prix and the Hong Kong International Races at Sha Tin all draw sponsorship from a range of companies. But in uncertain economic times, can the sponsorship dollar be justified and what are sponsors hoping to get out of an association with a sporting event?

The Rugby Sevens is easily the hottest ticket in town, and entices not just sponsorship from two of Hong Kong's most recognisable brands, Cathay Pacific and HSBC, but is also a catalyst for other companies to roll out the corporate hospitality red carpet. Most of the major banks, together with companies from other industries, compete for corporate boxes in what has become a must-attend event for locals and overseas visitors alike. One veteran organiser of a major bank's Sevens hospitality is conscious of the sensitivity in spending on what is seen by many attendees as one big party.

"You have to think carefully about how stakeholders perceive your company and the way you spend money. There must be a very strong business rationale to justify client entertainment, with plenty of approval processes before you can go ahead.

"The Sevens is more of a networking and bonding opportunity. Business may come out of it eventually - the atmosphere is not conducive to long serious business discussions, more to relationship building, but this is Hong Kong's biggest annual event and it's an ideal platform for all international corporations to have a presence and show their support for Hong Kong."

Cathay Pacific's John Slosar may only have taken over the chief executive's role at Hong Kong's airline in 2011 - just after that year's Sevens - but will continue the airline's involvement as sponsor while he sees clear value in the partnership, not least because it puts passengers on planes. "Events like the Sevens offer us an opportunity to promote Hong Kong and give the world an irresistible reason to travel here. That is the underlying reason for our sponsorship. We've maintained an association with the Sevens right from the start in 1976." Cathay also sponsored the Hong Kong International Races for a number of years before that sponsorship was assumed by Swiss luxury watchmaker Longines. Did the association with that event meet expectations? "Our sponsorship of the Hong Kong International Races was very successful. It is another world-class event and it worked well for us. From our perspective the audience was similar. Maybe one set of people preferred rugby to horse racing, but they shared a common desire to travel, enjoy a world-class event and hopefully fell in love with Hong Kong in the process."