The global financial tsunami has deterred overseas buyers from going abroad to source. Trade show organizer Global Sources revealed yesterday that the China Sourcing Fair: Electronics & Components concluded last week at AsiaWorld-Expo recording a decline of 7.6% year-on-year in the number of visiting buyers. But the company comments that the exhibition industry is recovering and they have no plan to cut booth rates to attract exhibitors.

Global Sources' Executive Director, Sarah Benecke, said the number of visiting buyers for last week's show only dropped slightly but it fared better than the overall industry. She added: "It's been a tough market environment this year. But buyers still need to source and do business. They may be sourcing in smaller quantities, but demand remains high. We believe that the economy is recovering and we are optimistic about the fall show."

Global Sources Exhibitions General Manager, Tommy Wong, said while buyers from the U.S. and European markets had declined by 10 to15% compared to last year, those from the emerging markets had increased. Exhibitors number had increased at the electronics show and the baby and children's product show even recorded the largest growth at 35%. However, exhibitors for the home products and gifts shows had declined slightly. Wong said the company has not cut booth rates, but spent more on promoting the shows to attract overseas buyers.

No plan to cut rates; new shows scheduled in two years.

Sarah Benecke also revealed that the company is scheduled to open new fairs in the next two years. However, since it's not known whether AsiaWorld-Expo will go ahead with its second phase expansion, Global Sources' plan has been put on hold. CEO of AsiaWorld-Expo Management Limited, Allen Ha, said they have undertaken a full investigation into the feasibility of an expansion to the venue and are ready for it. The company is awaiting the government's study and approval for the expansion.

Ha declined to reveal the usage rate of AsiaWorld-Expo and noted that the venue has only been open for a short time, so there is room for improvement.

Ha added that the AsiaWorld-Expo now accounts for 30% of the total convention and exhibition business in Hong Kong since it opened three years ago. The venue provides HK$ 8 billion in economic benefits to the city every year, creating about 18,000 full-time and part-time jobs.