Twenty major sports events taking place last year in Hong Kong has generated HK$2.1 billion, according to a joint study by KPMG and the Business of Sport Network (BOSN).
The study revealed that the hosting of major sports events can have multiple benefits for an organising country or city. In Hong Kong, spectators have generated HK$ 1.1 billion economic impact in 2017 – 21% of them are international spectators and account for 88% of the economic impact of spectators. While participates and event organisers contributed HK$200 million and HKD800 million respectively.
The total HK$2.1 billion economic impact is similar to that from the US open.
Alastair Graham, director of global sports network, KPMG China, said, “Sports as a global business has changed significantly in recent years, and the challenges faced by public institutions, sports clubs and federations have grown increasingly complex. Countries and cities compete for major sports events to showcase themselves on an ever more crowded international stage and, at the same time, to secure maximum economic and social benefits.”
The study also showed that 85% of Hong Kong’s event portfolio are “recurring events”, with each event contributing an average of HK$113 million. Their long-term growth is crucial as they look to become fixed in the Hong Kong calendar for many years to come. Followed by one-off events with average economic impact of HK$103 million.
Meanwhile, participation events, which generated HK$167 million economic impact on average, higher than HK$105 million for spectator events.
“Statistics like these show that Hong Kong has taken big steps forward when it comes to developing new event concepts and hosting mass-spectators sports event in Asia. With further investments being made and more emphasis being placed on developing the sports from grassroots upwards, there has never been more interest in the industry. Now is prime time for Hong Kong to compete with the markets such as the US and Europe that will not only appeal to the local market, but also bring in spectators from around the world,” Melvin Byres, founder of BOSN, commented.
The study concluded that to become a destination for major sports events, Hong Kong needs to develop more events, bring the industry together to create an unified sector with commercial practice, boost participation of sport to maintain Hong Kong’s status as Asia’s world city.