Trevor Foley says Asia’s main markets are finding themselves in very different places
A focus this month on Asia is a fascinating exercise in contra-indications. The four main geographical markets of China, Hong Kong, Singapore and Thailand are all in very different places.
The Asian region has, without doubt, experienced both the toughest and longest of Covid-19 restriction policies of anywhere in the world. And while Covid-19 is now almost a non-conversation in the West, the matter is far from over in Asia.
China’s bewildering policies also have a direct impact on Hong Kong, traditionally the gateway for the growth of global exhibition businesses in Asia.
The events infrastructure has always been excellent in Hong Kong and ever improving in mainland China. However, the ongoing spontaneous lockdown policies create a problem that completely negates any value of that infrastructure. This issue is trust. How can organisers and venues effectively plan events when the Chinese government closes venues and entire cities randomly, immediately and repeatedly?
The issue in Hong Kong is different to the mainland. Most of the major events in Hong Kong are 70% - 80% international and when the strict hotel quarantines and travel bans were in place it was simply impossible to organise events. Things are definitely improving, so Hong Kong should bounce back reasonably well during the course of next year.
While, earlier this year, Thailand made a very definite statement to end its lockdown programme, repeated political upheaval issues are always at the back of people’s minds in the territory.
Then, there’s Singapore. While there was a period where the government pronouncements of opening up were not matched by experiences on the ground, there is no doubt that Singapore is already the new gateway to the Asian operations of global event organisers. Moreover, there is so much opportunity to capitalise on
the situation.
All of this is having a fundamental impact on human capital in the region. Asia is the second strongest region for my own business outside of the UK. This has not changed during the last two or three years. Having placed the CEO’s/MD’s of many of the organiser businesses in Singapore, I have an ‘up close and personal’ insight into the way things are shaping up for the future of the region. Here are some current examples of trends:
- Foreign nationals (mainly Europeans) who were in China or HK are now heading for Singapore or home, and some industry players (Asians and foreigners) in Hong Kong have already moved or are seeking to move to Singapore and other countries in the region. This is creating a demand-led cost of living crisis in Singapore.
- This is creating a matching salary explosion issue for both existing staff and potential recruits.
- Singapore may become prohibitively expensive.
- Organisers are increasingly looking at acquisitions and launches in other countries in the region such as Indonesia, Vietnam and Malaysia.
Shows in China, when they do happen are largely domestic affairs. In Hong Kong, shows can only open when they can be international. At the moment, all roads lead to Singapore for much industry talent in the region despite the huge rises in the cost of living. The Chinese government will have to make a very definitive statement in order to restore trust among global organisers.
Asia will continue to be a strong region of growth for the industry, with a huge amount of talent already there, and more willing to go. It will be government policy that will dictate where that growth lies. Singapore can neither house all the shows nor all of the talent. It will be interesting to see which other countries in the region wake up to the opportunities. Will it be the previously established markets of Hong Kong and China or will new territories come to the fore?
This article includes contributions from Paul Woodward Advisory.
