Search Issues
Stretching a whopping 55 kilometres, the Hong Kong-Zhuhai-Macao (HKZM) Bridge is currently the world’s longest oversea bridge and undersea tunnel, a national infrastructure named by English-language newspaper The Guardian as one of the seven wonders of the modern world. The new bridge is poised to unlock a new wave of business opportunities for Macao.
Opened in October 2018, the US$20 billion bridge is designed to strengthen trade and business ties and foster the seamless link between Guangdong, Hong Kong and Macao, with the aim of strengthening trade and business links between the three places.
One of the industries set to receive a significant boost through the infrastructure is the Meetings, Incentives, Conventions and Exhibitions industry, also known as MICE, stated Macau Convention and Exhibition Association Chairman of Board of Directors, Alan Ho.
“The Greater Bay Area has entered the age of the bridge, [bringing the region] within a one-hour commuting radius, giving further impetus for international MICE delegates to participate in conventions and exhibitions in Macao,” Mr Ho told Macao Image.
He said that the opening of the HKZM Bridge can enhance business ties between the three places and push forward the “one fair, two venues” concept. For example, in July 2019, the triennial International Comparative Literature Conference will take place in Shenzhen, whilst the general congress of the event will be held in Macao.
Meetings and conferences attracted more than 217,000 participants in the first nine months of 2018
Thanks to the Macao SAR Government’s “Priority to Conventions” drive, the domestic MICE market has been growing steadily in recent years with remarkable outcomes.
In the first three quarters of 2018, a total of 966 MICE events were held in the city with participants and visitors increasing by 14.8 percent year-on-year to 1.38 million, as cited by the Statistics and Census Bureau.
Official figures show the industry generated a total of nearly MOP3.54 billion gross value added in 2017, up by nearly 147 percent compared to 2015. Gross value added for the MICE market of all others was 0.9 percent, rising by 0.5 percentage points from 2015.
“The MICE market has received abundant support from the government as it is high on the government agenda in fostering economic diversification,” said Mr Ho, citing the “One-Stop Service for MICE Bidding and Support” programme as one that has helped propel the recent growth.
“The programme provides comprehensive services for MICE event organisers who are interested in Macao. It encourages the industry to visit different convention and exhibition cities in search of more business opportunities,” he added.
“The strategy to encourage MICE delegates to explore the community worked out well.”Alan Ho, Chairman of the Board of Directors of the Macau Convention and Exhibition Association
The 2019 policy guideline under the Secretary for Economy and Finance states that the Macao SAR Government would step up border control assistance for international MICE delegates with service points either at the Hong Kong International Airport or the Hong Kong Port of the HKZM Bridge. Mr Ho is confident this measure will enhance the travel experience for delegates.
“Cross-border exhibitions can be jointly held within the whole Greater Bay Area, and engage local and overseas buyers, especially those from the Portuguese-speaking Countries, in this one-stop purchasing platform.”Tony Lam, President of Macau Fair and Trade Association
Promoting MICE events in the Greater Bay Area
Macau Fair and Trade Association President Tony Lam believes that the HKZM Bridge can only be utilised to the fullest when it is well-connected with the transportation infrastructures of other cities in the Pearl River Delta Region, in order to guarantee the long-term development of Macao’s MICE industry.
“Based on the ‘Development of the World Centre of Tourism and Leisure’ positioning, Macao should co-ordinate major cross-border transportation infrastructure facilities in line with the development of the HKZM Bridge, particularly in enhancing integration between the railway networks in the Pearl River Delta region with Macao’s transportation system, in order to achieve more efficient regional commuting of passengers and goods,” said Mr Lam.
He suggested Macao to draw on its matured transportation network to co-ordinate and to link different cities in the Greater Bay Area in order to allow for the development of cross-border MICE projects.
“It is recommended to co-ordinate and specialise the various parts of the supply chain of the thematic industry in the Greater Bay Area cities,” remarked Mr Lam.
“Under these specific themes, cross-border exhibitions can be jointly held within the whole Greater Bay Area, and engage local and overseas buyers, especially those from Portuguese-speaking Countries, in this one-stop purchasing platform.”
A total of 966 MICE events were held in Macao in the first three quarters of 2018
The cradle of the hospitality industry
The benefits from the MICE market extend far beyond the hosting of fairs, inducing high multiplier effects for related industries including tourism, hotel as well as food and beverage.
According to Mr Ho, business travellers spend an average of MOP10,000 a day, three times more than most tourists.
In the first eight months of 2018 alone, by introducing the local community to MICE delegates for sightseeing and consumption, 26,000 of these visitors already spent 90 percent of what MICE delegates spent in all of 2017, according to the Policy Address for 2019.
“The strategy to encourage MICE delegates to explore the community worked out well,” said Mr Ho. “Some restaurant events focused on pulling in more MICE delegates”.
Although the MICE strategies have started to show positive results, Mr Ho recommends convention and exhibition venues and facilities to be more evenly spread out across the city, such as increasing convention and exhibition venues in various tertiary institutions instead of being concentrated in the Cotai area, to cater for the demands of different events.
“To increase convention and exhibition venues and to drive a more evenly distributed economic growth across communities, the city should extend such facilities to higher education institutes, such as the Macao Polytechnic Institute, as well as cultural facilities, such as the Macao Cultural Centre, on top of the existing dedicated convention and exhibition venues which are mostly found at entertainment resorts,” said Mr Ho.
He also suggested building a government convention and exhibition centre, and back-up sites for storage and logistics on the Zhuhai-Macao Boundary Crossing Facilities of the HKZM Bridge, in order to “strengthen MICE and tourism relationships between Macao, Hong Kong and Zhuhai to achieve a win-win situation.”
“Tourism agencies of Macao, Hong Kong and Guangdong have to step up collaboration, so the attractions of each city can become part of a single longer haul visit for a MICE event.” Glenn McCartney, Associate Dean of the Faculty of Business Administration at the University of Macau
Fostering Macao’s MICE identity
While everybody wants a piece of this growing sector, academics recommend Macao should step up efforts to enhance the international image of Macao’s MICE sector as well as promoting its sustainable development in the face of escalating competition.
Glenn McCartney, Associate Dean of the Faculty of Business Administration at the University of Macau said that tourism thrives in cities that are united by a strong city branding and identity.
“A successful city branding strategy appeals to certain traveller segments and their motives,” said Mr McCartney, citing Paris as a renowned shopping and romantic destination.
Mr McCartney says the HKZM Bridge has “huge potential” in driving business tourism growth but relying on big infrastructure is not enough.
“Each city has its own attributes which make up a powerful Greater Bay Area proposition. Tourism agencies of Macao, Hong Kong and Guangdong have to step up collaboration, so the attractions of each city can become part of a single longer haul visit for a MICE event, and motivate the development of the sector,” he explained.
