SUNNY SKIES AHEAD: The Hong Kong Convention and Exhibition Centre is looking for increased bookings and new overseas business in 2000.Flexible pricing, discounts, service drawing meetings to Hong Kong.
HONG Kong is offering flexible pricing and focusing on service and marketing tools to lure American MICE business to the city next year.
Hong Kong Convention and Exhibition Centre (HKCEC) managing director Cliff Wallace is optimistic that the centre's marketing strategies will result in more bookings for 2000. "Hong Kong is clearly coming out of the slump in the economy."
The 1999 trend towards smaller, local meetings has boosted occupancy at the centre's venues under 500 square metres to 57 per cent. HKCEC experienced a 68 per cent increase in October this year over 1998 in such bookings. The larger convention halls, however, remained underutilised, with only 45 per cent booked.
According to figures from the Hong Kong Tourist Association (HKTA), participation in conventions and exhibitions increased by 11 per cent from 1998 to 1999 and the outlook for 2000 is bright. Already, 48 corporate groups from longhaul markets have confirmed meetings in 2000 for a total of nearly 8,000 people.
The HKTA's Convention & Incentive Travel Bureau senior manager Mabel Hung says the US and Japan are the main marketing targets for 2000.
The bureau made a splash at the 1999 American Association of Association Executives (ASAE) Expo in August this year, and also hosted a familiarisation trip for buyers from the largely-US based International Association for Exposition Management in November. Several US-based incentive groups have booked Hong Kong for next year already.
From further afield the Swiss-based International Telecommunications Union has booked 60,000 square metres in the HKCEC in December 2000 for ITU Telecom Asia. It will be the largest event of its kind held in Hong Kong, drawing an expected 40,000 visitors over five days.
Hung says that Hong Kong's growing advantage is in its ability to offer flexible pricing in combination with better infrastructure and professional services.
Meetings and incentives are being combined more frequently, increasing the requirement for destinations to have excellent meeting facilities. "Hong Kong is in a good position to capture these trends with the development of incentive products that cater to small groups," Hung says. "Our hotels and venues also offer excellent meeting facilities as well as deluxe dining options."
Hung points out that dual-destination incentives are also growing in popularity. "Hong Kong is also working closely with other cities in China as well as beach resorts in Southeast Asia to stay ahead of the competition."
The HKCEC is offering several deals to organisers reserving space in 2000. The centre will soon announce a continuation of 1999 prices through to the end of 2001. The 1999 price freeze was to have ended in December 2000. As well, off-peak discounts of 40 per cent off space rental are designed to draw bookings in the traditionally slow months of February, July, August and December.
Wallace says these inducements are the result of a new flexibility introduced in April 1999.
The centre's recent expansion in a tough economic climate has meant that marketing is more challenging.
"We are being more flexible about pricing and about layouts, equipment and food and beverage," Wallace says. "We are hoping it will generate new business and let clients get bigger on the same budget."
For first-time meetings and conventions which require over 3,510 square metres there are discounts of 30, 20 and 10 per cent for the first three years. The centre requires only that the meeting be new to Asia and have demonstrated international content.
So far there have been no takers for the special discount offer but Wallace reports that a recent visit by the ASAE board netted an enthusiastic response to Hong Kong.
"The Americans are looking at opportunities outside the US, and Asia is the least known. They were very excited about the mystique and adventure of Hong Kong."