The growing supply of mid-scale hotels and unique venues is helping Hong Kong to finally be more approachable for association events
When consultancy Mercer sought to rank Asia’s most expensive city for expatriates, based on the costs of 200 common expenses, including accommodation, transport, clothes, food, entertainment and gas, it found Hong Kong topping the annual list in 2018.
Hong Kong’s reputation as an expensive city for business travel and activities is nothing new. But what is refreshing is change creeping into place, as the growing presence of mid-scale hotels, interesting off-site venues and catering suppliers make the destination more affordable.
In recent years, Hong Kong has welcomed a slew of homegrown and international mid-tier hotel brands such as Hotel COZi, Penta, Holiday Inn Express, Dorsett and Hilton Garden Inn. These are scattered around downtown and the New Territories.
Destination China’s general manager, Gunther Homerlein, said that while these properties are not in prime locations – such as within walking distance of convention centres – they offer cost-conscious meeting delegates more affordable accommodation options that are still supported by Hong Kong’s convenient public transport system.
While a good Destination Management Company (DMC) would help associations secure better rates from suppliers, Ivy Sung, managing director of Faces of Hong Kong, said the growing supply of mid-scale hotels has helped to generate more competitive rates in the marketplace.
“As well, with the decrease in visitorship from China, hotels and meeting venues here in Hong Kong are working harder to (get business from elsewhere), Sung added, painting a pro-buyer scenario.
Mid-scale hotels also provide critical accommodation relief for “secondary meeting delegates”, opined Connexus Travel’s managing director, Gloria Slethaug, who defined this segment of attendees as students or attendees from “lower income” countries.
Slethaug noted that most associations tended not to include mid-scale hotels in their official accommodation options, out of consideration of event brand positioning. “Fortunately, more association chiefs and meeting planners are now willing to exercise flexibility and be innovative with options to offset pricier operating costs.
“For instance, planners are now using technology to replace printed materials and signage, reducing the duration of meetings and plenary sessions, simplifying menus and have more dine-arounds to improve attendees’ networking opportunities – all of which help to cut operating costs,” she said.
What mid-scale hotels cannot do though, is to provide meeting venues for cost-conscious associations.
Momentous Asia Travel & Events general manager, Doris Lam, said “only five-star hotels or Hong Kong Convention and Exhibition Centre (HKCEC) have the space” for plenary sessions her company has to organise for associations.
“But hotel meeting packages are pricey and HKCEC is difficult to book for association meetings that are not recurring,” said Lam.
Meanwhile savings can be sought from dinner and social events being hosted at local restaurants and unique venues.
Jao Tsung-I Academy, Club One at Repulse Bay and the Hong Kong Jockey Club make good options, in addition to lecture halls located on university grounds.
Homerlein also suggested hosting social functions during the quieter days of the week – Sunday to Wednesday – when there are many “empty tables” at restaurants.
Associations could also approach larger restaurant chains, such as Dining Concepts, with a budget and leave them to develop a suitable menu and dining ideas.
Homerlein acknowledged that these options are better suited for smaller-sized association events.
“For bigger gala events, organisers are still hamstrung by the minimum expenditure imposed by the larger venues. Fortunately, there are other venue options now, such as the new Cruise Ship Terminal (which offers event spaces for rent). More venue options means more competitive rates,” he remarked.
