New exhibition opportunities:

China, Hong Kong, Taiwan

TCEB representatives’ meeting with Thai exhibitions industry

26th February 2009

Paul Woodward

© Business Strategies Group Ltd. 2009

All rights reserved

1

New exhibition opportunities:

China, Hong Kong, Taiwan

TCEB representatives’ meeting with Thai exhibitions industry

26th February 2009

Paul Woodward

© Business Strategies Group Ltd. 2009

All rights reserved

2

Economic highlightsChina Hong Kong Taiwan Thailand

Population 1,300 million 7 million 22.7 million 66.5 million

GDP (US$) $3,460 bn $207.2 bn $384.7 bn $246.1 bn

GDP growth 2008

9.1% 3.1% 1.8% 3.0%

GDP growth 2009 (f)

6.0% -4.7% -3.5% -1.8%

GDP per capita (US$)

$2,620 $29,680 $16,978 $3,700

Total trade (2008 US$)

$2,561 bn $749.9 bn $496.5 bn $241.9 bn*

+17.7% +5.3% +6.5% +12.4%

Exports $1,428.6 bn $335.7 bn $255.7 bn $127.9 bn

+17.2% +5.1% +3.6% +17.1%

Imports $1,133.1 bn $387.9 bn $240.8 bn $114.0 bn

+18.5% +5.5% +9.8% +7.5%

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* Trade figures for Thailand: 2007

Economic outlook

� China

� Export industries hit very hard by downturn

� Government’s key concern is unemployment

� Huge Rmb4 trillion (US$585 bn) stimulus package to boost

domestic demand

� Hong Kong

� Pillars of Hong Kong economy are trade, financial services

and tourism – all badly hit.

� Unemployment rising, retail sales falling. But, government has

huge ‘buffer’ for economic stimulus.

� Taiwan

� Exports fell by 42% year-on-year to, $13.6bn, in December,

the sharpest year-on-year fall ever recorded.

� Continued political and economic rapprochement with China

could be one of the big stories in Asia of 2009.4

Trade & travel links with Thailand

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Trade /

Flight

China Hong

Kong

Taiwan Macau

Trade US$ $27.2 bn $12.21bn $7.69 bn $60.2mn

Exports US$ $17.96 bn $8.16 bn $3.06 bn $6.7mn

Imports US$ $9.76 bn $4.05 bn $4.64 bn $53.5 mn

Estimated # of direct flights to

Bangkok/day

12 14 4 3

# of airlines to

Bangkok/day

6 8 1 2

Note

Trade figure for China-Thailand in 2006, Source :National Bureau of Statistic of ChinaTrade Figure for Hong Kong-Thailand in 2008 , Source : HKTDC

Trade figure for Taiwan-Thailand in 2008 ( Jan- Nov ), Source : BOFATrade figure for Macau-Thailand in 2005 , Source : IPIM

Top 5 industries of bilateral trade with

Thailand

� Travel

� ***

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China Hong Kong Taiwan

1 Electricals & Electronics

Electricals & Electronics

Electricals & Electronics

2 Agricultural & By Products

Gems & Jewelry Industrial Machinery

3 Petroleum & Energy

Petroleum & Energy Agricultural & By Products

4 Industrial Machinery

Industrial Machinery Petroleum & Energy

5 Rubber & Products

Plastic & Articles Steel

Source : Global Trade Atlas* Ranking in terms of top trade volume (US $ mn ) between Thailand and the respective market

Exhibition industry overview: China

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China: top 10 exhibition venues

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China: key players

� China Foreign Trade Center Group (Canton Fair)

� CCPIT� Complex structure of affiliated regional and industry sub-councils.

� CIEC in Beijing and SIEC in Shanghai are key players.

� Ministry of Commerce� Increasingly important regulatory role.

� Major trade centres� Dongguan

� Yiwu

� Foreign companies� Messes Hannover, Munich and Düsseldorf as shareholders in SNIEC.

� Messe Frankfurt and Kölnmesse as organisers without venues.

� CMP Asia (mainly through its CMP SinoExpo in Shanghai).

� Reed Exhibitions China (through its WOFE and its Reed Sinopharm and Reed Huabo JVs).

� VNU Exhibitions Asia – via the Keylong joint venture.

� Increased focus on ‘secondary’ cities� Note Tarsus JV with Hubei Hope – 24 small – medium-sized events in

second tier cities.

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The role of government in China

� The government is very closely involved in the

industry.

� Ministry of Commerce: regulator and subsidising SME

participation in over-seas fairs.

� CCPIT: owns fairs and venues, organises over-seas pavilions

and events. Focused on trade promotion.

� Trade associations: in China most trade associations are very

closely linked to government structures.

� By comparison, the domestic private sector players

tends to be quite small and localised.

� So, a degree of government-to-government

involvement in developing China activities is very

helpful.

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China exhibitions SWOT

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Exhibition industry overview: HK/Taiwan

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HK/Taiwan exhibition venues

� Hong Kong� Hong Kong Convention &

Exhibition Centre� City centre location.

� 64,000 m2 of exhibition space, currently being expanded to 83,400m2.

� Owned by HKTDC.

� Phase III under consideration.

� AsiaWorld Expo� Airport location.

� PPP ownership and management.

� 70,000 m2.

� Successful venue for large exhibitions, concerts, events and large incentive groups.

� HITEC� Not really relevant for

international consideration.

� Taiwan� Taipei World Trade Centre

� Cutting edge venue design in early 1980s.

� 35,720m2 of exhibition space.

� City centre location.

� Space constrained with >90% occupancy.

� TWTC Nangang� Venue under same (TAITRA)

management.

� Phase I (45,360 m2) is effectively over-spill for big sourcing fairs.

� Phase II (roughly doubling space) is in detailed phase of planning.

� Kaohsiung & Taichung regional centres.

� Small.

� Supplement TWTC.

� Not internationally relevant.

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HK/Taiwan key players

� Hong Kong

� Hong Kong Trade

Development

Council

� HKCEC management

� Kenfair

� Global Sources

� CMP Asia

� AsiaWorld-Expo

� Taiwan

� TAITRA

� Chan Chao

� Individual trade

associations

� Computers

� Electronics

� Usually (but not

always) working

together with

TAITRA

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The role of government

(HK & Taiwan)

� Hong Kong� No direct government

involvement in trade fairs.

� HKTDC is a statutory body, but not a government department.

� HKTB’s new MEHK division also officially a statutory organisation but not a government dept.

� HK Tourism Commission leading promotion of MICE.

� That is a government department.

� Taiwan� TAITRA is dominant

organisation in exhibitions.

� Jointly sponsored by the government, industry associations, and several commercial organizations

� Ministry of Economic Affairs also involved: heading the MICE Project Office.

� Taiwan’s complicated relations with other countries (because of PRC relationships) can make this troublesome for them.

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HK exhibitions SWOT

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Taiwan exhibitions SWOT

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How to capture the China opportunity

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Visitors • Work closely with CCPIT at all levels.• Work closely with trade associations.• Visitors’ Group Fam trip ( 2X/ year).• Promotions (primarily online) & PR

Exhibitors • Work closely with CCPIT at all levels.• Work closely with trade associations.• Establish network of exhibition sales agents who are

knowledgeable of Thailand.• Exhibitors’ Group Fam trip (1x / year)• Promotions (primarily online) & PR

Organisers • Work closely with exhibition industry associations in Shanghai, Beijing & other cities.

• Maintain direct contacts with key players via rep offices.• Roadshow promotions (1x/year )• CEFCO • Promotions in exhibition industry trade press.

Sales Agents • Identify a group of sales agents who are interested in developing special knowledge and understanding of Thailand.

• Exhibitors’ Group Fam trip ( 1x/ year)

How to capture the opportunity in Hong

Kong & Taiwan

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Visitors HK • Maintain close relations with HKTDC (in HK and Bangkok).

• Promote to key trade associations.

Taiwan • Maintain close relations with TAITRA (in HK and Bangkok).

• Promote to key trade associations.

Exhibitors HK • Maintain close relations with HKTDC (in HK and Bangkok).

• Promote to key trade associations.

Taiwan • Maintain close relations with TAITRA (in HK and Bangkok).

• Promote to key trade associations.

Organisers HK • Promote through HKECIA.

Taiwan • Promote through TECA and TCEA.

Sales Agents HK • Work closely with local organisers who are in interested in Thailand (particularly those with good connections in S. China)

Taiwan • Expand network of sales agents among those in Thailand with particular knowledge of or interest in Thailand.

The TCEB China team

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2009 plans� Roadshows

� June in China – Beijing & Shanghai

� TCEB together with private sector

� Major Exhibition event in China

� - CEFCO (Xi’an January 2010)

� - Yangzte Delta forum ( Dec 2009)

� One-on-one meetings� Regular meetings in HK & Shanghai

� Rep city visits� Across China – Ningbo ,Hangzhou, Nanjing, Yiwu,

Tianjin ,Dalian, Changchun. Chengdu, Xi’an, Shenzhen and Xiamen

� Taiwan (PW/Wing)

� Fam trips to Thailand (dates t.b.c.) � Visitors group organisers – May and November

� Media –July

� Exhibitor group organisers - September

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Thank you

wing@bsgasia.com

candy.tceb@gmail.com

Tel : +852 2525 6165

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