Hong Kong's new challenge

Hong Kong has long had a reputation for being able to overcome, revamp and adapt to the constantly evolving economic fortunes of the region and the world. The recent changes on the regional business landscape also means adjustments to the game plan of the conferences and meetings (C&M) industry in Hong Kong. While most in the industry are predicting a reasonably solid year, booking times will be shorter which means last-minute and frenetic organisation to fulfil client needs. Professional conference organiser Pacific World Hong Kong managing director Ms Peggy Lau says the biggest change she has seen in the industry for a long time has been the recent shift in booking times. "It is very early in the year to say how business is going to be compared with 2001 but the business landscape has changed a little as well," she says. "A lot of companies in the region are providing organisers with much shorter lead in times so business booked well in advance has fallen away and it is hard to tell how the year will pan out." Ms Lau cites one example of a major international computer firm which informed Pacific World in December it wanted to hold a meeting for 1,200 delegates this month. "For a meeting of this size you would normally get more than three or four months to organise it," she adds. Destination Asia managing director Ms Jenny May agrees lead times have changed dramatically but adds Hong Kong remains a popular C&M destination. "Business definitely looks brighter for Hong Kong this year, it is just with much shorter lead-in times," she says. Destination Asia recently handled a conference group of 250 Asia Pacific delegates from computer software firm Veritas and they have already booked to return with a group of 350 for next year. Hong Kong Tourism Board (HKTB) senior manager business development Ms Mabel Hung believes the attitudes of those in the C&M industry will keep Hong Kong at the forefront of destination options. "We are optimistic for this year and expect small growth on 2001. Hong Kong has coped reasonably well with the economic downturn and people realise there is a 'can do' mentality here," she says. "Hong Kong has always had this spirit of working harder and faster and putting in longer hours and that is very true here for organisers and venues. If companies want to bring their groups here and the pressure is on for the Hong Kong industry to provide results then it will." The HKTB has also had a shift in focus to destinations it will concentrate on pitching the city to. Importance will be placed on Japan, South Korea and Taiwan and this has already produced results. Late last year, 10,000 delegates from a Thailand-based insurance company came to Hong Kong over four months for a series of meetings. Two large movements of 9,000 delegates (a direct sales company with staff in Japan, Taiwan and South Korea) and 12,000 Asia Pacific staff from direct sales company Unicity will come this year. "We are starting to see more short-haul business coming here and this will definitely be a focus for us as we can cater to Asian visitors so well," Ms Hung adds. Island Shangri-La area director of marketing Hong Kong, Taipei and Hong Mr Rick St. Maurice has also seen booking patterns for organisers change. "Events are happening but they are happening with a much shorter lead-time," he says. "We have even seen clients come to us one or two weeks out from the event wanting 50 to 60 rooms and meeting rooms and the associated services for a two or three day meeting. Business patterns for meetings have definitely changed. "We have to be more flexible in meeting client needs. We have the Island Shangri-La and the Kowloon Shangri-La hotels and we can provide similar facilities at the Aberdeen Marina Club, so we try and meet all requests." Harbour Plaza North Point general manager Mr Dean Schreiber agrees hotels and venues need to be flexible. "It has become a bit of a cliché, but we will be maintaining what we have already done and be as flexible as possible in arrangements and price," he says. "We have gone a bit further by tailoring C&M programmes to suit client needs and removing a lot of discount exemptions on a lot of packages we offer." The Harbour Plaza North Point is also looking to South Korea to boost demand for C&M programmes. The hotel has installed an in-house Korean-language television channel as well as printing various menus and other hotel brochures in Korean. It has a Korean guest relations officer to deal with South Korean C&M groups. As competition for C&M business in Hong Kong remains as fierce as ever, the Grand Stanford Inter-Continental Hong Kong will unveil new C&M facilities in May. These comprise five rooms, a service centre and a new business centre to complement existing facilities. "(The hotel) is taking steps to attract increased levels of meeting and conference business," the hotel's director of marketing Ms Christine Mechtler says. "The new rooms will double the existing meeting capacity for the hotel and the rooms will feature state-of-the-art facilities. "Emphasis has been placed on incorporating the highest levels of technology into the new rooms, not only to accommodate current guest needs, but also to exceed the expectations of the (C&M) segment." Shangri-La's Mr St. Maurice said the group's hotels in Hong Kong are also in line for upgraded facilities. P&O Travel also wants to increase its exposure to the C&M organising and facilitating market in Hong Kong this year and managing director Mr Richard Willis believes Hong Kong can compete with other regional centres once the government grants access to new venues. One venue C&M organisers are desperate to get access to for gala theme parties is the old governor's residence just out of Central. It has been vacant since Hong Kong's handover in July 1997 but the current administration refuses to make it available to corporate event organisers. "There is so much of Hong Kong's history there and it is a magnificent building. It would be a superb venue for events and something new for Hong Kong but we have not been allowed to use it despite numerous presentations from the industry," says one organiser. Mr Willis adds organisers getting access to Government House is vital for the destination to attract second- and third-time visitors because it would offer something different to previous programmes. "I have been pushing to get this venue open for some time," says Mr Willis. "At the moment, it is just used as a high-class dining room for the upper echelons of government. It should be turned into a museum and be used as a venue for evening functions for the right groups." Destination Asia's Ms May said she had received numerous inquiries about the use of the venue. "A number of people looking to bring groups to Hong Kong commented that if they could do something new here, like hold an event at Government House, they would be prepared to pay up to US$10,000 to use it," she says. HKTB's Ms Hung ads the HKTB is also lobbying the government for organisers to gain access to the venue. "It is at the top of our list and the government is very conscious of our requests to have it opened," she says. MV Destination Management general manager Mr Clemson Lo has run events in Government House as he organises some governmental C&M traffic. He argues just opening the inside of the house would not be enough. He says access would also need to be granted to the residence's expansive garden and outdoor areas. "I think the China Club is a better venue than Government House anyway," he adds. "Yes the house would be an exclusive venue but the dining and function hall only has room for about 120 people. The garden would be great for themed events but marquees would be needed and I don't know how keen the government would be on that." Attempts to contact a spokesman for the Hong Kong government for comment were unsuccessful. Pacific World's Ms Lau said a larger obstacle for Hong Kong to overcome is the amount of business it is losing to China. "Business events that Hong Kong would have received years ago is now going to China as that market matures, China will very quickly develop into the most popular C&M destination in Asia," she says. "The big challenge for Hong Kong is to keep business here. A lot of large companies have used Hong Kong before for their events. When they want to come back they are always asking 'so what is new in Hong Kong?'." Mr Willis agrees. "At the moment China - and especially dangerous for Hong Kong, southern China - just seems more amenable to new ideas and the opening up of significant landmarks for this type of business," he says. "Hong Kong has to rethink the facilities here because cities and venues in China are very proactive and they have a lot of space. There needs to be a deeper probe into the access Hong Kong organisers have to venues." But Mr St. Maurice of Shangri-La believes the increased business going to China could also be seen as positive for Hong Kong's C&M business because of the number of new events that will be going there. "With global businesses moving into China, there is going to be a need for more C&M activity there anyway," he says. "I think this could be viewed as an opportunity for Hong Kong. No one really knows on a quantitative basis the number of things that are going to go on up there but I would think there is going to be a flow on for Hong Kong. "Many big multi-national companies have offices in Hong Kong and they and have opened or will open offices in China, so there will be a need for those offices to meet." So Hong Kong retains it hunger for catering to major regional C&M markets and is adapting to the new business environment. It will also continue to put pressure on the relevant authorities to continuing opening and reinventing new venues.