An assessment of 20 major sports events that took place in Hong Kong during 2017 shows that the Hong Kong economy benefited by HKD 2.1 billion, according to a joint study by KPMG and the Business Of Sport Network (BOSN).
The study highlights that the hosting of major sports events can have multiple benefits for an organising country or city. In Hong Kong, spectators have generated HKD 1.1 billion economic impact in 2017 – 21 percent of them are international spectators and account for 88 percent of the economic impact of spectators. Participants and event organisers contributed HKD 200 million and HKD 800 million, respectively. The total HKD 2.1 billion economic impact is similar to that from the US open, the study finds.
Alastair Graham, Director of Global Sports Network, KPMG China says: “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 shows that 85 percent of Hong Kong’s event portfolio are ‘recurring events’, their long-term growth is crucial as they look to become fixed in the Hong Kong calendar for many years to come. Meanwhile, participations events - where the majority attendees are participants – generated HKD 167 million economic impact on average, higher than HKD 105 million for spectator events.
For Hong Kong to build on 2017 and realise its vision of becoming a destination for major sports events, the following four pillars are fundamental:
Melvin Byres, Founder, Business Of Sport Network, concludes: “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 events 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 to host the premier international sports events that will not only appeal to the local market, but also bring in spectators from around the world.”
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KPMG China operates in 19 cities across China, with around 12,000 partners and staff in Beijing, Beijing Zhongguancun, Changsha, Chengdu, Chongqing, Foshan, Fuzhou, Guangzhou, Hangzhou, Nanjing, Qingdao, Shanghai, Shenyang, Shenzhen, Tianjin, Wuhan, Xiamen, Xi’an, Hong Kong SAR and Macau SAR. With a single management structure across all these offices, KPMG China can deploy experienced professionals efficiently, wherever our client is located.
KPMG is a global network of professional services firms providing Audit, Tax and Advisory services. We operate in 154 countries and territories and have 200,000 people working in member firms around the world. The independent member firms of the KPMG network are affiliated with KPMG International Cooperative (“KPMG International”), a Swiss entity. Each KPMG firm is a legally distinct and separate entity and describes itself as such.
In 1992, KPMG became the first international accounting network to be granted a joint venture licence in mainland China. KPMG China was also the first among the Big Four in mainland China to convert from a joint venture to a special general partnership, as of 1 August 2012. Additionally, the Hong Kong office can trace its origins to 1945. This early commitment to the China market, together with an unwavering focus on quality, has been the foundation for accumulated industry experience, and is reflected in the Chinese member firm’s appointment by some of China’s most prestigious companies.
The BOSN provides a platform for the sports industry to grow and develop in Asia. This is achieved by giving professionals working on and around the commercial side of sports and mega-events the opportunity to communicate through a series of regular seminars and networking events. To date, seminars have been held on a wide range of hot topics that are all relevant to the growth and development of the sports industry, allowing members and guest speakers to share ideas, experiences and best practices. So far, topics featured include a briefing on the Kai Tak Sports Park by the Hong Kong Government’s Home Affairs Bureau, an introduction to e-sports, a look at the rise of mass participation events, how to make better use of digital marketing, and the environmental sustainability of events.
The network began in Hong Kong in 2016, before quickly expanding to Singapore, and today consists of more than 1,000 members from 170+ organisations across the region. BOSN continues to welcome new members in each city. For more information, please visit www.BusinessOfSportNetwork.com.
Director, Media and Publications, KPMG China
Direct: +852 2140 2824
Mobile: +852 9724 6092
Business Of Sport Network
General Manager, MSB Concepts
+852 5446 8140
Founder, Business Of Sport Network
+852 6270 7732