AMR worked on a strategy review of the long-term demand for exhibition and convention venue space in Hong Kong

AMR was engaged by the Hong Kong Commerce and Economic Development Bureau to develop a strategy review of the demand for convention and exhibition facilities in Hong Kong in the next 15 years

Key questions

  • What is the size and the key characteristics of the global, regional and local exhibition and convention market?
  • What is the scale and economic loss of currently unmet demand for exhibition vs. conventions in HK?
  • What are potential policy options for satisfying the unmet demand?
  • What would be the economic impact of implementing the proposed measures?

Highlights of AMR methodology

  • AMR used regional forecasts of real GDP to first conduct regional forecasts for the convention & exhibition (C&E) industries and then aggregated these for the global C&E industries forecast
  • AMR quantified current and future average unmet demand in Hong Kong per day, using a range of data inputs from stakeholders

Results

AMR quantified the current and future unmet demand for venue space and provided recommendations to the Government on how to address the issue

Review of the global and regional conventions and exhibitions industries

  • An essential part of the project was AMR’s presentation of the industry fundamentals to the HK Government
  • AMR estimated the size and long term 15-year growth outlook of the C&E industries globally and by region
  • AMR defined the underlying macroeconomic drivers and provided an “Event of the future” framework and potential implications for venue owners

Assessment of the Hong Kong C&E industries

  • AMR provided an overview of Hong Kong’s C&E industry, including market size and historic development, definition of major segments, overview of leading organisers and analysis of current venue supply
  • Furthermore, AMR assessed Hong Kong’s competitive positioning in the wider APAC region and benchmarked its attractiveness against its main competitors, incl. regional inventory and occupancy map.

Assessment of unmet demand for C&E facilities in Hong Kong

  • AMR estimated current addressed, pent-up and forecast demand for venue space
  • AMR defined the format of events that will drive growth (exhibitions large vs. small, conventions, etc.)
  • AMR assisted the development of an economic impact assessment model for estimating the economic loss of taking no action to address unmet demand

Review of potential policy options and recommendations

  • AMR recommended policy options for maximising utilisation and capturing unmet demand in the short and mid-term and venue space expansion options in the mid and long-term
  • AMR estimated the potential economic benefit from the implementation of each of the recommended policy options, incl. the expansion scenarios
  • AMR developed a framework to assist the Government in prioritising and selecting the most feasible policy options, including aspects such as ability to capture unmet demand, ability to implement, ability for Government to intervene, risks and constraints, estimated economic benefit, relative cost (qualitative assessment)