The convention and exhibition economy, tourism economy and real estate economy are called the three largest smokeless industries in the 21st century. Modern convention and exhibition industry is regarded as the rising industry of the new century, with huge vigor and development potential and the competitive focuses of the strengths and images among cities. The conduction of large-scaled and high quality conventions and exhibitions will promote one cityfs fame and the economy.
The conventions and exhibitions stimulated the consumptions of the accommodation, food, tourism, communications, advertisements and decorations etc, driving the economy development of the whole city. For example, the ticket revenues were 100 million Yuan (12 million USD) in Kunming Expo, 170 million Yuan (20.5 million USD) ticket revenues in the new scenic resorts, no vacant left in all the hotels for two consecutive months. Meanwhile, the development of convention and exhibition economy would provide high quality employments. It was estimated that every one thousand square meters of exhibition areas would create near one hundred employments. For example, 100 employments were created in 1996 Expo. The conventions and exhibitions would help the enterprise to obtain comparative advantages in the fields of products, technologies, production and marketing, reduce the costs to obtain resources and strengthen comprehensive competitiveness. The essential meaning of the conventions and exhibitions for the local economies lie in the further open-up, more actual comparisons, more accurate choices and more effective allocations so as to reach the growth in quality and the strengths of economic security co- efficiency.
In 1978, only six international conventions and exhibitions were held in China and China held and took part in 21 exhibitions abroad. Nowadays, the quantities and scales were increased by hundred folds and permeated into all walks of economy. Each industry had its own international professional exhibitions. By the end of 2006, there were totally 150 large and medium exhibition halls and the indoor exhibition floor space over three million square meters.
In 2008, the formal exhibitions held in China exceeded 3 thousand, the direct revenues of 14 billion Yuan (2 billion USD). The revenues of the related industries were about 130 billion Yuan (18.6 billion USD), realizing the excellent economic and social benefits.
As far as the exhibition scales and strengths are concerned, Beijing, Shanghai and Guangzhou had been the center cities of Chinese conventions and exhibitions, with the market shares accounting for 10 to 20 percent in the whole market shares. Some cities had been the regional centers of Chinese conventions and exhibitions, including Dalian, Changchun, Qingdao, Nanjing, Suzhou, Hefei, Hangzhou, Ningbo, Xiamen, Xi’an, Wuhan, Nanning, Kunming and Chongqing etc. besides, some districts, counties and towns also constructed exhibition halls and held the conventions and exhibitions and formed distinctive regional exhibitions cities, such as Weifang, Yiwu, Shunde, Lecong and Dongguan etc.
In 1995, the first joint venture of Chinese convention and exhibition industry was set up by Asia-Munich International Trade Fairs Pte. Ltd. and China International Center Group. From then on, the internationalization of Chinese convention and exhibition industry started. In recent years, Chinese convention and exhibition field had not only took part in or held some international famous conventions and exhibitions, but also set up the joint ventures with the international famous convention and exhibition companies and possessed many outstanding items.
The status enhancement of Chinese convention and exhibition market, not only changed the attitudes of international convention and exhibition giants, but also awakens the international dreams of Chinese convention and exhibition companies. On the one hand, the international convention and exhibition giants step into Chinese convention and exhibition industry by means of cooperative exhibitions and the establishment of joint ventures etc; on the other hand, Chinese convention and exhibition tried to develop towards the world. There existed law of development in the convention and exhibition industry, namely, branding and internationalization.
In 2007, the transitional period of World Trade Organization was ended. Chinese service industry further expanded the opening-up to the world. Under the macro background, Chinese convention and exhibition industry would be changed from the expansion of quantity to the promotion of quality, from the extension development to the intension development, taking the most use of foreign capitals. The cooperative convention and exhibition developed fast as well as the mergers and acquisitions among the convention and exhibition companies. More foreign capitals would used for the exhibition hall management. The foreign funded exhibition companies improved the exhibition scales and quality in China. The globalization of Chinese domestic convention and exhibition industry would be further improved.
Chinese exhibition hall constructions showed the structural transformation from 2006, the western and central regions being the new focuses. From 2006, the exhibition hall constructions in the eastern developed regions turned down as well as the new added projects. The exhibition hall constructions in the central and western regions were increased, represented by Xifan and Wuhan. From the whole development trends, Chinese convention and exhibition market was gradually divided in various categories. Chinese convention and exhibition industry step towards open and mature. Different target visitors were in different conventions and exhibitions. As long as you orientated accurately, the companies could discover massive target customers.
From the latter half of 2008, it was becoming more and more obvious of the influences of international financial crisis on Chinese convention and exhibition industry.
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From the part of oversea exhibitions, in 2008, China only carried out 1,103 exhibitions among the scheduled economic and trade exhibition plans of 1881, with the realizing rate of 59%, down by four percentage points compared with 2007. The realizing rate was 61% in the former half of 2008, and sharp down to 56% in the latter half of 2008. From the latter half of 2008, some companies canceled the exhibitions, which had already signed up and paid the deposits for the exhibitions. In 2009, fifty above mentioned exhibitions will be suspended, postponed or decreased the scales. It is predicted that it will directly lead to the reduction of 8-billion-USD exports.
From the part of exhibitions at home, Chinese companies, especially the medium and small companies, have to cut down the exhibition expenditure or even cancel the exhibition plans because of the reduction in the profits and the capital shortage etc, leading to the reduction of exhibitions, scales and profits. Meanwhile, the exhibition companies and the purchasers abroad decreased because of the depressive markets in many countries and districts and the closedown of partial companies.
China is a country with the largest population in the world, huge market space and consumption potentials. Compared with the annual hundred billion USD convention and exhibition market in the world, Chinese annual convention and exhibition industry with over two billion USD scale has a large development space. The development space needs explorations for the investors regardless of the convention and exhibition industry or its related industries.
World Expo will be held in Shanghai from 1st May, 2010 to 31st October, 2010. It is predicted that the visitors will be reached to 20 million (Shanghai government estimated the number will be reached to 70 million, in actual, it will not), including huge business opportunities.
This report describes the present development situation of Chinese convention and exhibition industry, major Chinese economic areas, present situations of the convention and exhibition industry in major cities and the major enterprises in Chinese convention and exhibition market, analyzes the marketing strategies of the convention and exhibition industry, researches the promotion functions of the convention and exhibition industry to the related industries and the mergers and acquisitions in Chinese convention and exhibition industry and discusses the investment opportunities and the recommendations and measures for the risk aversion. This report has high valuable references to make a good understanding on the present situations Chinese convention and exhibition industry and the related industries, master the development trends of Chinese convention and exhibition industry and master the investment opportunities.
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