Hong Kong Becoming Asian Base For Mtgs., Incentive Biz

<B>Hong Kong Becoming Asian Base For Mtgs., Incentive Biz</B>

By Judy Jacobs

The Hong Kong meeting and incentive market is booming. As foreign corporations seek to enter or expand their presence in a China on the verge of joining the World Trade Organization, they're using Hong Kong as a base for business in the People's Republic of China and the region as a whole.

That translates into more meetings and a post-handover destination with as much appeal as ever for incentive groups. And the first-ever nonstop service from New York means easier and faster access from the East Coast.

"Worldwide, we have experienced a growth of 26 percent in incentives in 2000 over 1999," said Anna Case, North American manager of convention, exhibition and incentive travel for the Hong Kong Tourist Association. "From the United States, there was a 33.9 percent increase in all corporate events."

Hong Kong's stature as a Special Administrative Region of China puts it in a unique position. "We're positioning ourselves as a stepping stone into China," Case added. "All the destination management companies in Hong Kong also can service groups in China, so they're dealing with just one company." Incentive organizers who want to pair Hong Kong with Beijing, Shanghai, Xian or other Chinese destinations, or meeting planners who want to include pre- or post-tours to mainland China can easily do so.

Although Hong Kong now can use its position as an SAR to its advantage, it took a while after the 1997 handover before planners were confident in the "new" Hong Kong, China. "After the handover, there was a very cautious wait-and-see attitude from the corporate end side. They weren't sure what was going to happen," said Linda Obront, Rochester, N.Y.-based director of sales and marketing for Asian destination management company Tour East. "Hong Kong has done a great public relations job with its super fam incentive trips to ensure planners that, under Chinese rule, Hong Kong is still business as usual," she added.

Meanwhile, the MCI business continues to expand. HKTA's Case said she is finding that the biggest growth is in corporate meetings, and the Hong Kong Tourist Association has joined with Northwest Airlines to create a three-day meeting package that includes accommodations in a four- or five-star hotel, roundtrip air fare and a tour, with prices starting at $1,569. "We plan to launch a similar package program for incentives in July. At that time we will conduct a road show on the East Coast. Now that there's a lot more lift, we expect to see more business out of the East Coast," Case said.

Jane Schuldt, president of Pacific World, a Minneapolis-headquartered destination management company specializing in Asia, agreed that corporate meetings in Hong Kong are on the rise. "There's a tremendous amount of business. A lot of meetings are coming in because Hong Kong is the portal to what's going on in China," she said. Groups her company has handled range from telecommunications companies and software user groups to financial and pharmaceutical firms.

According to Schuldt, the price of holding an event in Hong Kong certainly doesn't hinder planners. Once considered too expensive for many groups, the SAR has lowered its rates tremendously. "A year ago, hotels were selling rooms at the same rate as in 1988," Schuldt added. "People get a lot for their money."

Both corporate meetings and the incentive market are expected to benefit from additional air lift to Hong Kong, most notably the first ever New York-Hong Kong nonstop service launched this spring by Continental Airlines, followed by United Airlines one month later. Continental is using Boeing B777 aircraft, configured with 48 BusinessFirst and 235 coach class seating, on the route. United's B747-400s have 14 United First Suites, 84 business class and 270 economy class seats. The flight takes roughly 15 1/2 hours and covers a distance of more than 7,300 nautical miles.

Once in Hong Kong, meeting and incentive groups will be able to experience an increasing number of activity options. These include a day of orienteering on Lantau Island, Hong Kong's largest island, with tips on developing orienteering skills, a treasure hunt and a vegetarian lunch at Po Lin Monastery. Another option is to organize dragon boat races as a team building exercise, with each boat carrying a crew of 22 rowers.

The Hong Kong Tourist Association also offers feng shui tours, which explore the significance of this belief and the way it has influenced construction of buildings in Hong Kong. Another option for an offsite event is a day at the Sha Tin Race Course, which has a series of function rooms along the top of the track and participants can experience one of the SAR's favorite activities--betting. The HKTA also can organize experts to enlighten groups on Chinese herbs, fortune telling and the art of tea. A tailor can come to the hotel and talk about his work and make a shirt for all members of the group.

Stanley, the Hong Kong village famous for discount outlet shopping, not only has increased and improved its famous market, but also is adding restaurants for more dine-around possibilities. The town's newest venue is Murray House, which was built in 1844 as the British Army officers' quarters and was relocated to Stanley in 1982 after being dismantled to make way for the construction of the Bank of China in Hong Kong's central district. Murray House currently incorporates two restaurants and eventually will include two more.