Government to launch Convention and Exhibition Industry Subsidy Scheme

 

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Melissa Ng in New York City: (212) 752 3320
Wing Yan Tong in San Francisco: (415) 835 9315

Daniel McAtee in Washington, D.C.: (202) 238 6360

July 8, 2020 - To reinvigorate the convention and exhibition (C&E) industry, the Hong Kong Special Administrative Region Government established the Convention and Exhibition Industry Subsidy Scheme under the Anti-epidemic Fund with a commitment of HK$1,020 million (US$130 million) to subsidize participants and organizers of C&E activities. In light of the gradual resumption of many C&E activities in mid- and late July, the Government will launch the Subsidy Scheme.

The Subsidy Scheme has two parts. The first part subsidizes exhibitors of exhibitions organized by the Hong Kong Trade Development Council (HKTDC) 50 per cent of their participation fees, subject to a cap of HK$10,000 (US$1,282) per standard booth and 10 booths per exhibitor each time. Participants of HKTDC’s major conventions can also receive a subsidy equivalent to 50 per cent of their participation fees, subject to a cap of HK$10,000 (US$1,282) each time.

A spokesman for the Commerce and Economic Development Bureau said that the above part of the Subsidy Scheme related to the HKTDC will be launched on July 16 for 12 months until July 15, 2021, and is applicable to all HKTDC’s exhibitions and major conventions commenced during the period.

Eligible exhibitors and participants of major conventions do not need to submit applications. The HKTDC will directly deduct the amount of the Scheme’s subsidy from the amount receivable.

Furthermore, eligible small and medium enterprises (SMEs) may apply in tandem for funding support under the SME Export Marketing Fund (EMF) to cover their participation fees on a matching basis. The HKTDC and the Trade and Industry Department would work closely together in order to streamline application procedures so that eligible SMEs could obtain the subsidies they need seamlessly.

According to this arrangement, using a standard booth in an exhibition as an example, if the participation fee is HK$20,000 (US$2,564) or less, the exhibitor can take part in the exhibition for free. If the participation fee is over HK$20,000 (US$2,564), the exhibitor only needs to pay for the remainder after deducting the subsidies from the Subsidy Scheme and EMF for participating in the exhibition.

The second part of the Subsidy Scheme subsidizes organizers of exhibitions and international conventions held at the Hong Kong Convention and Exhibition Centre and AsiaWorld-Expo 100 per cent of the venue rental without a cap. This part will be launched on July 24 for 12 months until July 23, 2021, and is applicable to all exhibitions and international conventions commenced during the period.

The spokesman urged organizers to share the subsidy with participants. Eligible exhibitors can also apply for funding support under the EMF to cover their participation fees of the relevant events on a matching basis.

In general, eligible organizers are required to submit applications via the two venue operators after the events. To ease the cash flow of exhibition organizers, if an exhibition has been held in the two venues for the past five years, the organizer may submit an application two months before the event to obtain in advance a subsidy equivalent to 50 per cent of venue rental. The remaining subsidy will be disbursed after completion of the exhibition.