LCQ22: Support for exhibition industry
**************************************
Question:
To support the exhibition industry in Hong Kong, the Hong Kong Special Administrative Region Government provides funding to organisers and exhibitors through schemes such as the Incentive Scheme for Recurrent Exhibitions (ISRE), the ISRE 2.0 and the SME Export Marketing Fund (EMF). In this connection, will the Government inform this Council:
(1) of the following information (i) since the launch of the ISRE, and (ii) since the introduction of special measures under the EMF on April 30, 2021: the respective numbers of applications received and approved, together with the names of the organisers of the subsidised eligible exhibitions, their exhibition content, dates, venues, amounts of funding received, numbers and proportions of local and overseas exhibitors, numbers and proportions of local and overseas visitors and the regions of origin of overseas exhibitors and visitors (set out in a table);
(2) as some members of the industry have relayed that the ISRE 2.0 launched by the Government on July 1 this year does not have a specified end date, which affects the industry's cost budgeting for organising exhibitions, when the Government will announce the end date of the ISRE 2.0, and whether it will optimise the ISRE 2.0 by, for example, adjusting the quota for non-local participants and relaxing requirements such as the gross floor area used for demonstrating or displaying products, materials and services; if so, of the details; if not, the reasons for that;
(3) given that the EMF will be consolidated into the Dedicated Fund on Branding, Upgrading and Domestic Sales after June 30, 2026, with adjustments to the funding ceiling, matching ratio, etc, whether the Government has assessed the impact of these adjustments on the industry (e.g. the number of applications and the scale of activities); if so, of the details; if not, the reasons for that; and
(4) apart from the aforementioned funding schemes, whether the Government has other policy measures to support the exhibition industry, with a view to maintaining its competitiveness and encouraging further investment; if so, of the details; if not, the reasons for that?
Reply:
President,
The convention and exhibition (C&E) industry is crucial to Hong Kong as an international trade centre. The Hong Kong Special Administrative Region (HKSAR) Government has been promoting the long-term development of the C&E industry through various measures.
The HKSAR Government first launched the Incentive Scheme for Recurrent Exhibitions (ISRE) in July 2023, providing venue rental incentives to attract local and international exhibitions of different scales to be staged recurrently in Hong Kong. The maximum incentive for each exhibition was capped at $20 million. The ISRE ended on June 30, 2025, and was very well received, supporting around 220 eligible exhibitions with the total incentive amount exceeding $1.2 billion. The requirements for eligible exhibitions were clearly set out in the Application Guide promulgated by us, and all applications met the eligibility criteria. The exhibitions supported by the ISRE attracted numerous participants (including exhibitors and buyers), not only benefitting the C&E industry but also bringing in high-spending business travellers that drive economic activities in such related sectors as accommodation, catering, retail, entertainment, etc, thereby benefitting various industries.
To further promote the development of the C&E industry and the mega event economy, thereby generating overall economic benefits for Hong Kong, the HKSAR Government announced in the 2024 Policy Address the allocation of an additional funding of $500 million for launching the ISRE 2.0 on July 1 this year. The ISRE 2.0 focuses on supporting the venue rental expenses for new and recurrent international exhibitions of a large scale with a view to boosting the vibrancy of the C&E industry in Hong Kong. Taking into account the industry's views and the operational experience of the original ISRE, a number of new features have been introduced under the new scheme, including:
(a) only international exhibitions attracting at least 1 500 non-local participants (including exhibitors and buyers) will be covered;
(b) the maximum venue rental incentive for each eligible exhibition is capped at $10 million; and
(c) the Central Harbourfront Event Space and relevant parts of the West Kowloon Cultural District are included as new specified venues, alongside the Hong Kong Convention and Exhibition Centre (HKCEC) and AsiaWorld-Expo (AWE).
The above arrangements aim to focus on international events, benefit more eligible exhibitions and offer more venue options to the organisers.
According to the Application Guide, organisers may submit applications within two months after completion of the eligible exhibitions. As the ISRE 2.0 is still in the inception stage, we have received and processed about 10 applications so far, involving a total incentive amount of around $40 million. As stipulated in the Application Guide and explained to the industry on various occasions earlier on, the ISRE 2.0 will end upon exhaustion of the funds. Subject to the actual utilisation of the funds, we will announce the end date of the ISRE 2.0 in good time. We will maintain close liaison with the relevant venue operators and the industry in this regard.
In addition, the HKSAR Government provides funding support through the SME Export Marketing Fund (EMF) to encourage Hong Kong small and medium-sized enterprises (SMEs) to participate in export marketing activities and tap into non-local markets. To support enterprises to conduct more promotion during the pandemic and the post-pandemic recovery periods, special measures have been implemented under the EMF since end-April 2021 to expand the funding scope to cover exhibitions targeting the local market and online exhibitions, as well as relaxing the eligibility criteria to cover non-SMEs. Relevant special measures have been extended to end-June 2026.
From May 2021 to end-September 2025, around 42 150 applications involving exhibitions targeting the local market and online exhibitions have been received under the EMF, among which around 30 700 applications have been processed and approved. As the EMF targets at enterprises promoting their products/services, the Trade and Industry Department only collects information about applicant enterprises and their participation in exhibitions, but does not maintain other exhibition-related statistics mentioned in the question.
In March 2025, the HKSAR Government announced the implementation of various measures under the EMF and the Dedicated Fund on Branding, Upgrading and Domestic Sales (BUD Fund) with a view to providing support to SMEs in a more focused and sustainable manner. Currently, the matching ratio of the EMF has been adjusted from 1 (Government): 1 (enterprise) to 1:3 of the total approved expenditure. There is no change to the funding ceiling per application of $100,000.
As the current business environment is rife with uncertainties and challenges, it is imperative for enterprises to upgrade and diversify away from traditional markets to remain competitive. Traditional modes of business (such as mere product listing or publicity) may not suffice. To focus our limited resources to equip enterprises for upgrading and transformation, the EMF will be consolidated into the BUD Fund after June 30, 2026. Starting from July 1, 2026, enterprises may, in the context of upgrading and transformation, apply for the BUD Fund to participate in exporting marketing and promotional activities. To assist enterprises in adapting to the arrangements of the consolidation, it has been announced in the 2025 Policy Address that we will enhance promotion and facilitate the participation of companies in exhibitions and export promotion activities through "Easy BUD" under the BUD Fund, thereby developing more diversified markets.
Currently, most enterprises have not yet fully utilised the $7 million cumulative funding ceiling under the BUD Fund. We believe that enterprises can still flexibly utilise the BUD Fund after the consolidation to implement marketing activities.
To consolidate Hong Kong's position as an international C&E hub in the long run, apart from the abovementioned incentive and subsidy schemes, the HKSAR Government will continue to take forward the expansion projects of C&E facilities. The Airport Authority Hong Kong has commenced the construction works for the AWE expansion, which is expected to be completed in 2028. Meanwhile, the HKSAR Government continues to take forward the Wan Chai North Redevelopment project near the HKCEC as planned, including the redevelopment of the sites of the Wan Chai Government Offices Compound, Gloucester Road Garden and Kong Wan Fire Station into C&E facilities, hotel, etc. The AWE Phase 2 expansion project and the Wan Chai North Redevelopment project are expected to provide an additional 63 750 square metres of rentable C&E space. While implementing these two projects, the HKSAR Government will strive to flexibly utilise the existing venues and facilities for meeting the market demand.
Ends/Wednesday, October 15, 2025
Issued at HKT 16:42
Issued at HKT 16:42
NNNN