Findings from the latest Economic Impact Study on the contribution of Hong Kong’s exhibition industry to the economy in 2014, released today, contained encouraging news for the industry and for Hong Kong. Overall, the study reveals that the exhibition industry contributed an impressive HK$52.9 billion (US$6.8 billion) directly and indirectly to Hong Kong’s economy in terms of expenditure, equivalent to 2.3% of the city’s total GDP for the calendar year 2014. This represents strong positive growth by comparison with the figures from the previous Economic Impact Study, covering 2012.
At HK$52.9 billion (US$6.8 billion), the expenditure effects of the exhibition industry in 2014 were up by 29% from 2012, at a CAGR of 13.9%. A significant part of this was contributed by the direct spending of international exhibitors and exhibition visitors, who according to the study tend to spend 61% more per visit than the average overnight tourist visitor to Hong Kong, with their spending focused in the retail, hotel and F&B sectors.
The Study, commissioned by the Hong Kong Exhibition & Convention Industry Association (HKECIA), also shows that apart from direct economic benefits in terms of expenditure, the exhibition industry also provided equivalent of around 83,500 full-time jobs in the exhibition industry and other service and supporting sectors including hotel, F&B, retail, stand design and construction, and logistics and freight forwarding.
In 2014, the fiscal benefits (i.e. benefits arising from various government taxes associated with exhibition activities and participants) contributed by the exhibition industry amounted to HK$2.1 billion (US$269.9 million).
Commenting on the findings, Chairman of the HKECIA, Mr Stuart Bailey said, “We welcome this Study and the results because, once again, it highlights just how important our industry is for Hong Kong. The study shows in great detail the many ways in which exhibitions fuel Hong Kong’s wider economy – for example by spinning off economic benefits and extensive workforce to supporting industries, and attracting high-spending international business visitors to the city. The Study also reveals that overseas exhibition exhibitors and visitors continue to spend more than international overnight tourists. We should put efforts in making them visit the exhibitions in Hong Kong regularly."
Mr Bailey continued, “To continue providing Hong Kong with benefits at this level, our exhibition industry needs to remain attractive, efficient and competitive. We must continually be looking for ways of differentiating ourselves from regional competitors, in terms of things like providing premium exhibition space, ample capacity, and exceptional value-added services. I hope our policymakers will take the findings of this Study into account as they plan for the infrastructure and facilities that Hong Kong needs in the years to come.”
This is the sixth in a series of Economic Impact Studies, which have been carried out biennially since 2004. It was once again conducted by KPMG Advisory (Hong Kong) Limited, a respected independent research consultancy.
KEY FINDINGS OF THE ECONOMIC IMPACT STUDY 2014:
Economic impact of Hong Kong’s exhibition industry in 2014 and 2012
|Area||Benefits (2014)||Benefits (2012)||Compound Annual Growth Rate (CAGR)|
|HK$40.8 billion (US$5.2 billion)||13.9%|
|Employment||83,500 FTE||69,600 FTE||9.6%|
Hong Kong’s exhibition industry contributed expenditure effects of around HK$52.9 billion (US$6.8 billion) to the Hong Kong economy in 2014, up by 29% from 2012, representing a CAGR of 13.9%. This was equivalent to 2.3% of Hong Kong’s GDP, up from 2.0% in 2012.Expenditure effects continue to grow due to growing visitor number and expenditure
Fiscal impact grows with increased visitor and business spending
The tax take enjoyed by the Hong Kong Government in 2014 as a result of exhibition activities is estimated at around HK$2.1 billion (US$269.9 million), based on the total expenditure effects of HK$52.9 billion (US$6.8 billion).
Derived from three taxes:
Equivalent of 83,500 full time jobs provided by the exhibition industry
Full-Time Equivalent (FTE) employment amounted to around 83,500 in 2014, representing a CAGR of 6.5%, up from 69,600 in 2012.
International exhibition visitors and exhibitors contributed more than overnight tourists
The report showed that international exhibition visitors and exhibitors spent on average 61% more than overnight tourists.
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