Financial center in Hong Kong Essay

Hong Kong is one of the universe ‘s prima fiscal centres and it locate at the bosom of the universe ‘s economic systems and it is a planetary market place that links the economic systems of Mainland China and Asia with major markets worldwide. Besides, Hong Kong is a dynamic metropolis, transforming in recent decennaries from fabricating base to service Centre to run into the demands of a changing universe. Today it is one of the universe ‘s fiscal capitals, and a regional hub for trade, commercialism, logistics, transportation and touristry.

Although Hong Kong comprises little more than 1,000 square kilometres, it is a dynamic metropolis that blends both east and west, old and new and retail chances. Hong Kong is the perfect host for meeting or corporate event.

While the distribution of conventions among assorted industries appears to be rather even, a few industries provided a steady part to the market throughout the old ages while others have fluctuating demand. The industries that were dominant in pulling delegates are the Art, civilization & A ; societal industries, and the medical scientific discipline, medical & A ; wellness industries. In most old ages, these two industry classs combined represented more than 40 % of the entire figure of delegates to conventions in Hong Kong. ( HK-Government-Secretariat, 2000 ) The conventions in these industries are typically larger than the events in the other industries. Abroad visitants of exhibitions hosted by the commercialism, industrial and trade industry represented the highest figure of foreign visitants and showed an increasing tendency.

By and large, I will give a SWOT analysis ( Hill, T. & A ; R. Westbrook, 1997 ) that the convention and exhibition market in Hong Kong. The application of SWOT analysis purposes to look into the internal strengths and failings in add-on to external chances and menaces of that the convention and exhibition market in Hong Kong.

The analysis of both internal and external environments is vitally important in fixing the development of the concern touristry market in Hong Kong. Based on the findings, I will try to do some recommendations base on the failing and menaces to research the market chances and to extinguish any external menaces in Hong Kong.

There are the strengths of Hong Kong as a conference finish. Hong Kong enjoys a high grade of liberty under the “ One Country, Two Systems ” rule. With its rights and freedoms upheld by the Basic Law, Hong Kong remains Asia ‘s most widely distributed metropolis and it is a free port with no trade licence or duty on most general ware to be exhibited.

Furthermore, Hong Kong is an international air power and maritime Centre and a regional corporate hub. Harmonizing to the record, Hong Kong was host to 6 612 overseas and Mainland companies as at June 2008, stand foring an addition of 2.7 per cent over 2007. Of this sum, 3 882 service as regional central office or offices ( Brandhk.gov, 2009 ) .

About the substructure web of Hong Kong, the Hong Kong International Airport ( HKIA ) is located less than five winging hours from half of the universe ‘s population and HKIA links Hong Kong with around 150 finishs round the universe, including some 40 metropoliss on the mainland. Each twenty-four hours in 2008 an norm of 450 000 people and 42 000 vehicles crossed the Hong Kong- Mainland boundary line by land, while more than 66 000 made the trip utilizing ferry services. Tens of 1000s more arrive and go on around 200 day-to-day flights between Hong Kong and 40 Mainland metropoliss ( Brandhk.gov, 2009b ) . Furthermore, Hong Kong offers visa free entry to citizens of 160 states and attracts international attendants with its repute as a safe, dependable and observant topographic point. Furthermore, Hong Kong has a first transit system and an first-class supporting substructure web of hotels and eating houses. Hong Kong ‘s rail web will spread out from 210 kilometers at present to over 260 kilometers by 2015. New roads and railroads have enhanced connexions with the Mainland, particularly the Pearl River Delta with farther betterments underway. Hong Kong ‘s conveyance system is inexpensive compared to most states. Most journeys on the tube cost less than US $ 2 ( Brandhk.gov, 2009 ) .

Hong Kong offers a wide scope of cultural and amusement activities to visitants. Such as first hotels, private nines, subject eating houses and attractive forces around town that can provide for meetings and maps of all types. Furthermore, Hong Kong provides a batch of world-class locales such as AsiaWorld-Expo ( AWE ) , Hong Kong Convention and Exhibition Centre ( HKCEC ) , and Honking International Trade & A ; Exhibition Centre. These locales installation can pull exhibition that requires a different type of installation, e.g. : machinery and fabrication engineering, automotive, wire and overseas telegram, environmental and H2O intervention and HKCEC as a major locale of keeping a batch of large-scale exhibition. It has really good direction and is good recognized internationally. Besides, Hong Kong has a big and readily available pool of experient convention and exhibition professionals including booth interior decorators, contractors, selling experts and cargo forwarders.

In 2008, Hong Kong was ranked 12th least corrupt in a worldwide study by independent Berlin-based organisation Transparency International. This corruptness free environment, combined with a clean, efficient civil service, a knowing multilingual work force, taking professional services and a planetary market web, hold given Hong Kong an border in the market place ( Brandhk.gov, 2009b ) .

And there are the chances of Hong Kong as a conference finish. Compare to Singapore, Hong Kong is close to China and is more convenient to Chinese exhibitioners and purchasers. In add-on to Chinese exhibitioners and purchasers believe that there is a better protection of rational belongings in Hong Kong than in China. Chinese exhibitioners and purchasers perceive Hong Kong events as being more international ; and offer better quality and more dependable public presentation than those in China.A

With China ‘s entry into WTO, Hong Kong trade carnivals and conventions are expected to go an of import focal point for mainland Chinese and international man of affairs seeking joint venture spouses and concern chances in China. Besides, with the gap of Hong Kong Disneyland in 2005, Hong Kong is expected to go an even greater draw for international visitants uniting concern and leisure in one trip.

The mainland and Hong Kong Closer Economic Partnership Arrangement

( CEPA ) , in operation since 2004, is a landmark free-trade treaty that allows tariff-free entry of all Hong Kong goods to the mainland, conveying new concern chances to the mainland, Hong Kong every bit good as foreign investors. Further CEPA liberalisation steps have been introduced every twelvemonth. From January 1, 2009, Hong Kong services providers in 40 sectors enjoy discriminatory market entree.

Compared to 2007, the figure of trade visitants in 2008 fell by 9.4 % ( numbering over 551,000 ) ( HKECIA, 2008 ) .Given the utmost economic fortunes confronting most universe economic systems in the 2nd half of the twelvemonth, this statistic is an encouraging cogent evidence that Hong Kong remains a sourcing hub of planetary importance as compared to a bead of some over 10-25 % in other parts of the universe. And the figure of trade visitants from the Mainland declined by merely 3 % with over 170,000 recorded in 2008, while regional and international Numberss recorded a lessening of 13 % ( over 174,000 ) and 11 % ( over 207,000 ) severally ( HKECIA, A 2008 ) . These h3 visitant Numberss from the mainland are a signal that Hong Kong plays a cardinal function in linking mainland China to the remainder of the universe.

Although Hong Kong have a batch of advantage as a conference finish, Hong Kong besides exist the failings and menaces. The exhibition monetary values are the failings of Hong Kong. At present, Hong Kong has the smallest exhibition infinite, merely 92,000 sq. m. This figure is smaller than that of Beijing, Shanghai and Guangzhou PR Delta. In footings of monetary value per sq. m, Hong Kong is the most expensive one, US $ 6-4. Guangzhou and PRD are the cheapest 1, merely US $ 3.8-1.0 ( BSG, 2004 ) .

Harmonizing to the China Exhibition and Convention Center Directory, Exhibitors and visitants perceive Hong Kong as an expensive topographic point to exhibit and see. Average exhibition rental cost per square metre per twenty-four hours doubles that of Singapore and is three to five times more expensive than China ( DCOEM, 2007 ) . During the peak exhibition months, viz. January, March to June, September to November, new exhibition has trouble in booking locale in Hong Kong. Due to the laterality by HKTDC, the growing of private companies in exhibition concern in Hong Kong is slow and limited.

Besides, these are several menaces of Hong Kong as a conference finish. There are serious competitions from mainland China. Because of the events in mainland China are clearly cheaper than those in Hong Kong and their monetary values are falling. And there are significant growings in exhibition infinite in mainland China during the past three old ages. Macao is be aftering to construct an exhibition centre. Besides, there is possible eroding of the relevancy of trade carnivals from the Internet and other alternate media.

In add-on, Singapore retains its 5th place in the 2000 ranking of the universe ‘s top convention metropoliss, which was compiled by the Union of International Association ( UIA ) . Already a pick venue, IE Singapore ‘s vision is for Singapore to be both a hub and a launch tablet for exhibitions of international reputation. IE Singapore ‘s design is set out in the International Exhibition City ( IEC ) Program ( MacLaurin & A ; Leong, 2001 ) . Through this plan, IE Singapore encourages new international trade carnivals and conferences to locate in Singapore while preparing bing 1s into taking industry events for enlargement into the Asia Pacific part.

It showed that Hong Kong was perceived as less competitory than Singapore as an international conference finish. Based on the failings and menaces of the Study, I provide a sum-up of our major recommendations for better the Hong Kong concern touristry market in Hong Kong and get the better of its failings and develop competitory advantages to keep itself as an ideal international conference finish in Southeast Asia.

First of all, betterment in authorities support by supplying subsidies and inducements to both local member professional associations and the exhibiter forming events, every bit good as more aggressive abroad selling from the Hong Kong tourer association, through its Hong Kong Convention and Incentive Travel Bureau. Selling of the possible Centre should be co-ordinate with the organisation that is responsible for the overall selling of Hong Kong as a convention and exhibition finish. This agreement could be based on bing state of affairss, which involves both public or private sector organisations or a freshly established Convention and Exhibition Bureau.

Then, betterment in the type, quality and scope of installations and services offered at the exhibition locales to be competitory with other convention finishs. Besides the touristry market should diminish in rental rates for convention installations such as HKCEC, hotels and conference Centre. Making them more competitory with the rental rates offered in other convention finishs. For illustration, the hotels should establish on seasonality, attending size and entire figure of room darks booked by a professional association to diminish and flexibleness in hotel room rates.

Besides, The Hong Kong authorities should set much more resource in different educational establishments to supply more professional classs. Educate and developing more professional decision maker with the cognition in direction, polite and communicating accomplishments.

All in all, Hong Kong has developed to be one of the taking first finishs for MICE industry. With major committedness by the authorities and the private sector, another world-class exhibition hall would greatly heighten Hong Kong ‘s competitory place in hosting first events. Therefore, if the Hong Kong authorities can collaborate with the conventions and exhibitions industries, it may non merely generate employment chances and gross within the conventions and exhibitions industries and other related industries but besides would advance touristry concern in Hong Kong and supply a new locale or market topographic point to showcase Hong Kong ‘s merchandises and services. It besides enhances the international image of Hong Kong as Asia ‘s centre for concern, finance and services.

Mentions:

Brandhk.gov ( 2009 ) . HK authorities fact sheet:At a GlanCe. The Government Logistics Department

Brandhk.gov ( 2009b ) . HK authorities publication:This is Hong Kong. Information Services Department of the HKSAR Government.

HKECIA ( 2008 ) . HK Exhibition Survey:Hong Kong ‘s Exhibition Industry Holds Up Despite the Global Economic Downturn. The Hong Kong Exhibition and Convention Industry Association.

Hill, T. & A ; R. Westbrook ( 1997 ) . “ SWOT Analysis: It ‘s Time for a Product Recall ” .

HK-Government-Secretariat ( 2000 ) .Consultancy Study on the Provision of Additional Convention and Exhibition Facilities in Hong Kong.

DCOEM. ( 2007 ) .China Exhibition and Convention Center Directory.Beijing: Economic Daily Publishing House.

BSG. ( 2002 ) .Economic Impact of Hong Kong Exhibitions Industry.Hong Kong: Business Strategies Group Ltd. www.bsgasia.com

MacLaurin, D. , & A ; Leong, K. ( 2001 ) .Schemes for success: How Singapore attracts and retains the convention and trade show industry.Unpublished manuscript, Singapore.