Mega-events drive HK$5.8 billion spending in first half of year, Paul Chan says Visitors to major events in Hong Kong have spent HK$5.8 billion (US$739 million) during the first half of the year – averaging HK$3,314 per head – the city’s finance chief has said. In his weekly blog on Sunday, Financial Secretary Paul Chan Mo-po said about 1.75 million visitors were drawn to more than 130 events between January and June, generating around HK$5.8 billion in spending and contributing HK$3.3 billion to the economy. “Art, cultural and mega-events have lifted the overall atmosphere and driven consumer demand, as reflected in the data: total retail sales value has risen for 14 consecutive months, up 9.6 per cent in the first half of the year,” he said. Chan said major events continued to drive visitor traffic, highlighting the Hong Kong Football Festival and the Audi Football Summit, held shortly after the Fifa World Cup. Chan said the three matches at the two events attracted more than 120,000 attendees and generated over HK$180 million in ticket sales. He added that more than 100 events were scheduled for the second half of the year, including the Food Expo, National Day fireworks, the Hong Kong Cyclothon and the Hong Kong Wine and Dine Festival. These were expected to draw more than 1.85 million visitors, HK$5.9 billion in spending and HK$3.3 billion in economic value added. “Hong Kong will host the Apec finance ministers’ meeting for the first time in October, bringing together prominent political and business leaders from across the Asia-Pacific region,” he said. “We will leverage the opportunity to show that Hong Kong is not only a world-class international financial centre, but also an event capital rich in culture, arts, sports and lifestyle experiences – a great place to live, work and visit.” Chan also highlighted a 22 per cent year-on-year revenue surge at the Hong Kong Palace Museum and M+, driven by rentals and merchandise sales, including HK$30 million worth of products related to an exhibition on ancient Egypt. The upgraded Asia IP Exchange platform, which now featured more than 10,000 listings, would also help drive trade, he added. Gary Ng Cheuk-yan, a senior economist for Asia-Pacific at Natixis Corporate and Investment Bank, said mega-events were helpful in facilitating spending, but their contribution was relatively modest. “If Hong Kong was to record [around HK$11.7 billion] in mega-event-related spending this year, as the government predicted, it would only account for about 3.2 per cent of the annual retail sales,” he said. “When mega-events take place, we may see a temporary economic boost over those few days in specific locations, but these events are hardly a game-changer, nor can they address the underlying weakness in local consumption sentiment amid the trend of Hongkongers spending across the border or abroad, and mainlanders spending less in Hong Kong.” He said it was also important to look at the cost of hosting these mega-events to truly ascertain their cost-effectiveness in boosting the economy. Making the mega-event sector sustainable in the long run required a self-supporting ecosystem without relying on government subsidies, though the authorities could help streamline approval processes and lower administrative costs to make hosting events easier, Ng said. “Hong Kong already has strong connectivity. If we could host more diverse events and facilitate faster approvals, we could position ourselves as a premier choice for events across Asia.” Economist Thomas Yuen Wai-kee said mega-events were undeniably helpful to Hong Kong’s economy, although some operators were left out. “The economic gains did not trickle down evenly, but skewed towards specific pockets,” he said. For example, shops selling football jerseys were likely to have captured the spending, but the overall retail sales for apparel did not show a significant increase. According to government statistics, apparel sales only increased by 0.8 per cent in June year on year. “Hong Kong is undergoing an economic transformation that businesses need to be creative to survive. In the past, people watched World Cup matches in bars, but this year they got to do that in teahouses while enjoying dim sum,” he said. https://www.scmp.com/news/hong-kong/hong-kong-economy/article/3363432/mega-events-drive-hk58-billion-visitor-spend-first-half-year-paul-chan?pgtype=live (ICE HONG KONG)

Fonte notizia: South China Morning Post