Destination favoured despite costs

Hong Kong is still the best place in Asia-Pacific to organise regional exhibitions despite its high costs, according to Michael Duck, director of exhibition organiser Miller Freeman Asia.

'Hong Kong is second to none in the region. It has natural advantages - being in the middle of Asia, half way between Japan and Singapore - plus excellent airport and hotel facilities,' he said.

'You would have to pay a bit more for that . . . those who are cost-conscious will have to move to other areas.' Mr Duck is also chairman of the Hong Kong Exhibition and Convention Organisers' and Suppliers' Association.

However, he said Hong Kong's costs were still very high, partly due to its currency linkage to the US dollar, which prevented it from gaining cost competitiveness by way of currency depreciation like its competitors such as Singapore.

He said the association welcomed the Hong Kong Convention and Exhibition Centre's (HKCEC) announcement last month to maintain its freeze on rental charges until the end of next year as well as its incentives designed to boost stagnant occupancy.

A year ago, the HKCEC froze overall rental rates, cut rates for low-season bookings by up to 40 per cent and gave organisers of new exhibitions discounts of 10 to 30 per cent if they signed contracts for three years.

Mr Duck said total rented exhibition space had increased by a 'small amount' in the past two years, according to figures to be released by the association soon.