The Asia-Pacific exhibition and convention
industry has never been more vibrant and governments, countries, cities and the private sector are moving rapidly to cash in with a spate
of new venues and upgrades.
Hardly a day passes without a new announcement of a convention and exhibition centre to be built, or an extension to an existing facility coming out. But with all of this development there has been some concern among the industry relating to whether all of these new venues can be sustained in the region.
AsiaWorld-Expo (AWE) is one of the newest venues to open and its launch followed years of debate in Hong Kong as to whether two large convention and exhibition centres could remain profitable.
The Hong Kong Convention & Exhibition
Centre (HKCEC) had already had a massive
space increase for Hong Kong's handover
back to China in 1997. It was felt by management
of that venue that another centre in the
city would dilute the market.
Organisers in Hong Kong felt differently
and AWE went ahead. Now HKCEC will also
expand, creating more space. AWE has only
just opened and it has land available to it to
continue to grow, so the ongoing story of
Hong Kong venue space may never end.
Perfect gateway
Hong Kong has also long been known as a
perfect gateway to China, but mainland venue
expansion seems to be haphazard.
High-profile organisers in Asia — who prefer
to remain nameless because they are also tapping into the expanding exhibition and
conference business in China — say venue
development seems to have evolved into a
competition between cities as to who can
build the largest venue and that this could
have dire long-term results for the industry.
"There just is not the middle to lower-level
management and staff with the experience to
run these centres well, but all the main government
officials are very proud and if Shanghai,
Beijing and Guangzhou have a huge venue,
then they want one too," one organiser says.
Large new venues have also opened at
Hyderabad in India and Abu Dhabi in the UAE.
In Australia, brand-new centres have opened in Perth and on the Gold Coast. Anew
centre is to open in the Northern Territory's
capital city of Darwin and the Melbourne
Convention and Exhibition Centre has also
announced a massive expansion adjacent to
its existing facility.
But the industry still faces a number of
issues, which we have examined by talking
to regional organisers. We also have an exclusive
interview (see p52) with Barbara Maple,
president of the International Association of
Congress Centres, president of the Joint
Meetings Industry Council and chairwoman
of the World Council for Venue Management.
Double selling
One issue that has been constantly bubbling
away in Asia Pacific for many years, and one
that many exhibition organisers believe some
venues and their managers have not adequately
solved, is that of hosting multiple
events in one venue — in other words 'selling'
the same industry many times.
This has been a constant theme in Thailand
for many years and the issue is starting to
emerge in China where managers may be tak-ing any business they can to fill halls, including
'copycat' trade fairs.
Hong Kong-based senior vice-president of
CMP Asia Michael Duck is always quite
measured in his comments on this issue. He
says he would like to see some consistency in
the region.
But it is going to take a global organisation,
or at least a large regional one, to take the reins
and create the necessary parameters.
"In some countries or cities there are fixed
rules written in to contracts (to combat this),
however in most Asia (markets) there are
not," Duck says.
"There is much confusion in the industry
regarding this issue. I believe there should be
some consensus within the organising industry
on this matter.
"Without organisers there are no shows.
The organisers invest heavily and take the
risks commercially. In most cases the organisers
are independent companies (some are
state-owned, which reduces the risk) and so
fair profile protection is very important."
While Duck may have been alluding to
state-owned companies in the context of the
industry in China, it is also an issue in Asia's
other emerging giant, India.
New Delhi-based chief executive officer of
Global Exhibitions and Conferences, Sanjay
Handa, says his experiences have led him to
the same conclusion — venues should have
regulations in place to prevent similar shows
appearing frequently as it will dilute sourcebuyer
markets.
"Each convention centre must stick to the
rules and regulations in terms of allowing
organisers to organise shows," he says.
"There must be at least a four-month gap between each show in a similar or same product category."