The public consultation of the HKCEC third phase expansion will start soon. Meanwhile, there's still no timetable for the development of the reserved land for AsiaWorld-Expo. AsiaWorld-Expo is reported unhappy about the government's "unfair treatment". If the government decides to go ahead with the HKCEC expansion plan, AsiaWorld-Expo does not rule out taking legal actions.

A spokesman of Commerce and Economic Development Bureau said they are discussing the possibility of launching the expansion project as soon as possible. But no consensus has been reached yet. A spokesman of AWE said a land has been reserved for the second phase development. The expansion is ready to start and the venue design, planning, environment and transportation issues are settled. The timing will be decided by shareholders.

HKCEC monopoly: government accused of breaking promise

AWE CEO Allen Ha revealed at a press briefing that the launch of the HKCEC Atrium extension has had an immediate impact on AWE. The management company has seen a fall of businesses this year. Sources said that in 2006, when the government decided to launch the HKCEC atrium extension, it made a promise to AWE not to let HKCEC monopolize the exhibition market. However, only after three years and it's become obvious that the HKCEC phase 3 expansion is set to go ahead. According to the sources, AWE believes the government has not kept the promise and is considering taking legal actions against the government.

Civil Party member Ronny Tong said that the public-funded HKTDC has scheduled most the exhibitions at HKCEC, leading to a lack of businesses for AWE. He questioned whether it's a matter of monopoly arising from preferential treatment.

A spokesman of HKTDC said 28 exhibitions were held last year in HKCEC. Because of its full booking, six exhibitions had to move to AWE. The spokesman said HKCEC attracts more exhibitors because it is located at the heart of down town and its surrounding facilities provide a very good logistics support. In addition, exhibition organizers tend to hold their annual events at the same venue.

But Global Sources, the largest private trade show organizer in the territory and AWE's largest tenant, disagrees. Global Sources Chairman and CEO, Merle A. Hinrichs said AWE has the potential to become the best exhibition location in Asia. The area is set to become a transportation hub following the launch of Hong Kong-Zhuhai-Macau Bridge and the Hong Kong-Shenzhen airport railway project. Together with its advantages including its close location to airport and “column-free” exhibition halls, AWE can attract a great number of exhibitors and buyers from overseas.

Hinrichs pointed out that while HKCEC is a good exhibition venue, its multi-level, multi-pillar design is not good for exhibitions. And its expansion project will aggravate the traffic congestion problem in the area. Therefore it will be a better option to expand the AWE rather than dismantling the Wan Chai stadium to make room for the HKCEC phase 3 expansion.

DAB member Starry Lee said she was approached by both HKCEC and AWE parties regarding the expansion matters. Her understating is that Wan Chai residents tend to support retaining the stadium. Independent Legco member Chim Pui-chung said the government should seriously consider AWE phase 2 expansion.

Legco members: Wan Chai residents want to keep the stadium

Allen Ha said that they already had the plan and design for AWE phase 2 when the phase 1 venue was first built. AWE opened in 2006 and its business has been maintained well for the past three years. It now accounts for 30% market share of Hong Kong's exhibition industry, so there is a need for advancing its expansion.