Hong Kong government has been promoting the exhibition economy in hopes of attracting tourists and boosting the economy after the successful introduction of “Night Revelry” initiative to stimulate the economy. However, statistics show that the number of attendees at annual exhibitions, listed as major events by the government, has dropped by nearly 40% compared to pre-pandemic levels. A review of data by our reporter revealed that some projects with increased participation are related to population aging and immigration, indirectly reflecting the characteristics of Hong Kong’s economic prospects. The government estimated that the economic value brought by the 210 events this year accounts for only 3% of the most optimistic forecast for Hong Kong’s total economy. Compared to a large-scale project that becomes a global focus in other countries, Hong Kong’s performance seems lackluster due to the government’s emphasis on piling up numbers, leading to a loss of focus on major events. It is no wonder that public opinion considers Hong Kong’s major events to be “non-conclusive” (meaning strong development has not yielded results). Commentator Wang Anran believes that structural changes are still not visible at present.
Digging into the “Hong Kong Major Events Calendar,” a local research institute found that 17 annual exhibitions with a history of over 10 years have experienced a decline in attendance of up to 30% to 40%. An article from the institute titled “Exhibition Industry is Not Dead, But at a Standstill?” suggests that “although the exhibition industry is not dead, it has reached its peak and cannot develop further.” According to a summary report on the service industry by the Census and Statistics Department, the number of overnight exhibition visitors in 2023 was close to 1.3 million, a decrease of 23.2% from 2019, and foreign visitors participating in exhibitions in Hong Kong have not yet returned to pre-pandemic levels.
In addition to foreign businessmen, Hong Kong exhibition themes also cater to local demand. The changes in attendance at some exhibitions reflect the changes in Hong Kong’s economic and demographic structure. For example, the international printing and packaging exhibition saw the largest drop in attendance, with only 10,000 attendees, representing a sharp decline of 37.5% from 2018. A research report by U.S. brokerage firm Charles Schwab uses the demand for packaging boxes to speculate on the prospects of the U.S. economy, as the fluctuation in demand for packaging boxes in manufacturing and trade can gauge the economic climate. The decline in attendance at the packaging exhibition in Hong Kong may indicate a decrease in demand for various trades, aligning with the weakness in Hong Kong’s retail and tourism industries.
Furthermore, the exhibitions with the most significant drops in attendance include the stationery and learning supplies exhibition (see table), and the baby exhibition, which experienced declines of 31% and 19% respectively. The primary demand for these two exhibitions comes from infants and schoolchildren. In recent years, the emigration of Hong Kong residents has led to a wave of kindergarten closures, and last year, the birth rate in Hong Kong reached its lowest level on record. These phenomena correspond to the drop in attendance at the two aforementioned exhibitions. Conversely, the international medical and healthcare exhibition saw a 4.35% increase in attendance, with a press release quoting Dr. Lin Kin-Yue, chairman of the Hong Kong Trade Development Council, stating that the event is mainly related to the aging population in Hong Kong, reflecting the reality of the city.
It is noteworthy that the “International Immigration and Property Expo,” held for the fifth time in Hong Kong, has seen a steady increase in attendance and the number of exhibitors. Our reporter reviewed press releases and social media promotion records from previous editions of the expo, showing a steady growth in the number of exhibitors from 60 at the inaugural event in 2020 to over 100 in 2024. Additionally, for the first time in 2022, registered attendance increased from about 30,000 in the opening year to over 35,000 this year, representing a nearly 17% increase and indicating higher demand for immigration-themed expos compared to other subjects.
The Hong Kong government announced 210 major events for the full year of 2024, projecting approximately 1.7 million participants at these events, bringing about HK$7.2 billion in consumption and HK$4.3 billion in economic value added to the city. A study commissioned by the Hong Kong Exhibition and Convention Industry Association on the overall contribution of the exhibition industry to the Hong Kong economy revealed that the industry brought in about HK$52.9 billion in revenue in 2016, equivalent to 2.1% of Hong Kong’s GDP at that time. If the government’s projected figures are accurate, the economic impact of the 210 events would only amount to 21.7% of the exhibition industry’s contribution in 2016.
Looking at major global events this year, the most prominent is the Summer Olympics in Paris, taking place from July to August for 17 days. A study by the Center for Sports Law and Economics (CDES) at the University of Limoges in France indicates that the Olympics are expected to generate economic benefits of approximately €6.707 billion to €11.145 billion (HK$55.9 billion to HK$92.8 billion) for the local economy of Paris and about €8.9 billion (HK$74.1 billion) in indirect economic benefits.
Another ongoing major event is the UEFA European Championship hosted by Germany, lasting for one month. Researcher Gerome Wolf from the ifo Institute expects the tournament to bring 600,000 foreign visitors and 1.5 million overnight stays to Germany, with the event stimulating a 1.3% growth in service exports in the adjusted second quarter of 2024 compared to the first quarter.
On the other hand, international superstar Taylor Swift’s decision to skip Hong Kong for Singapore for her “Time Tour” concert has caused some turmoil in local politics. The concert is currently ongoing in the UK. A report by Barclays Bank in the UK suggests that the 15 concerts at four venues in the UK are expected to generate an economic impact of £1 billion (approx. HK$10 billion).
Furthermore, Jensen Huang, co-founder and CEO of Nvidia (stock code: NVDA), made a whirlwind visit to Taiwan in early June, attracting attention with visits to night markets and taking photos with fans. In addition to these activities, Huang intentionally mentioned Taiwan’s artificial intelligence supply chain in several public speeches, benefitting the Taiwan Stock Exchange, which reached a historic high of 23,253 points in June. Nvidia’s market value also rose to $3.335 trillion (HK$26 trillion) at one point, making it the world’s largest market value company.
With the rollout of 210 major events in Hong Kong, it is inevitable that the focus may be lost. On average, each event is expected to attract 8,095 tourists, generate HK$34.28 million in consumption, and provide an economic added value of HK$20.476 million, figures that are not particularly significant. Commentator Wang Anran believes that the stock market, tourism, and real estate sectors better reflect the actual economy of Hong Kong, while the salaries of civil servants and employees of public institutions serve as leading indicators for wages. “At present, everything seems to be maintaining surface appearances for those employed, but if the overall situation continues to deteriorate, it may be challenging to support the related wage levels.” He hopes to see structural improvements, but they are yet to be seen.