AUTHORITIES in the southern Chinese metropolis of Guangzhou are offering organisers of international conferences and exhibitions a fresh wave of subsidies to boost commercial activity as global concerns about trade tariffs increase.
Support for up to 50 per cent of the investment made into holding a qualifying International conference in the city comes as part of the “Benefiting Enterprises” initiative from Guangzhou Municipal Bureau of Commerce.
The 39 “policy services packages” are aimed at boosting domestic consumption, commercial activity, foreign trade and investment, along with international cooperation, according to reports. Section 35 of the policy package details support for business events including association and academic conferences.
Guangzhou’s offer comes as the spring edition of the Canton Fair – China’s largest and longest-running business event – comes to a close on Monday. More than 253,000 International buyers and business representatives arrived in Guangzhou for the Canton Fair’s autumn edition last October.
China is keen to ramp up trade relations with countries beyond the United States following US President Donald Trump’s “Liberation Day” tariffs announced early April.
More… Buyers put trade first at Canton Fair
One MICE organiser who brings international events to Hong Kong remarked that Guangzhou’s subsidies were “tempting” but destinations rarely revealed details of the eventual payments.
“Hong Kong and other cities like Singapore and Bangkok also offer incentives, but often through private negotiations with international event organisers. The details of these subsidies are typically not made public,” Stuart Bailey, chairman of the Hong Kong Exhibition and Convention Industry Association, told MIX.
“Guangzhou’s open offer is tempting, and it makes sense for Chinese cities to offer more generous subsidies to strengthen economic ties and offset trade tensions with the United States,” he said.
While a cap of 800,000 yuan (about US$110,000) for each conference is placed on the 50 per cent subsidy for venue rental, the assistance for “industry associations, societies… and academic research institutions” is a maximum of 500,000 yuan per conference.
Events recognised by “international authoritative organisations” such as the International Congress and Convention Association (ICCA) and the Union of International Associations (UIA) are entitled to apply for additional support of up to 150,000 yuan for each conference.
Reports in mainland China media say the measures from Guangdong’s provincial capital are aligned with “the spirit of relevant national and provincial documents” that seek to boost international commerce by strengthening the city’s exhibition industry.
The measures also seek to enhance the “competitiveness and influence” of Guangzhou International Convention and Exhibition Centre – the base for the twice-yearly Canton Fair.
More… How China biz events can weather the trade storm
“Cities worldwide offer incentives to attract international conferences due to their significant economic impact and global attention,” Bailey said. “Even smaller events with a few hundred international participants can substantially boost the local economy.
“MICE (Meetings, Incentives, Conferences, and Exhibitions) visitors often spend 40-60 per cent more than general tourists, staying in better hotels, dining at upscale restaurants, and shopping, especially in cities with tax advantages or specialised products.”
Guangzhou’s MICE subsidies come as part of support for consumer activities including the trade-in of mobile phones and other products to boost business. The measures come in the wake of a property market crisis in China and concerns about an economic slowdown.
Main picture… View of the Pazhou area of Guangzhou where China’s largest business event – the Canton Fair – is held twice a year
