The 22nd Hong Kong Watch and Clock Fair, which opened yesterday, has dispelled all lingering doubts about the after-effects of SARS on Hong Kong's position as an international centre for exhibitions and conventions.

The show at the Hong Kong Exhibition and Convention Centre drew more than 710 exhibitors and thousands of buyers from all over the world. The number of brands in the "Brand Name Gallery" doubled this year to showcase 42 Hong Kong and international labels.

"Your (overseas buyers) presence demonstrates clearly that Hong Kong has resumed our natural state, which is a vibrant and cosmopolitan business-oriented city," Financial Secretary Henry Tang said at the opening ceremony of the fair.

Tang said that Hong Kong was widely recognized as the best sourcing hub and a premier networking venue for industry players, both local and overseas alike.

Just a few months ago, overseas buyers backed off from Hong Kong because of the SARS attack. Exhibitions and events were called off or postponed; furthermore Hong Kong exhibitors were not allowed to participate in overseas trade fairs.

Despite the short-term setback of SARS and the incident at the Basel Fair, where Hong Kong delegates were not allowed to participate, Hong Kong's exports of watches and clocks reached US$2.5 billion for the first half of 2003, up 14 per cent from a year earlier.

Tang said the industry outlook was positive. The recent signing of the Closer Economic Partnership Arrangement (CEPA) between the mainland and Hong Kong would take the SAR's economy to a new height, he said.

Under the CEPA, which is effective from January 1, 2004, a wide range of Hong Kong goods, including the watch and clock industry, will enjoy zero tariff on the mainland.

Bob Chong, managing director of Chung Nam Watch, said: "I am optimistic about the outlook for the industry. I expect that Hong Kong exports of watches and clocks will maintain strong growth in the second half of the year."

Chong said CEPA had brought great expectations to the business; and would help the local industry create their own brands in the mainland market.

"Following the introduction of CEPA, I think one-fourth of the watch manufacturers are planning to create their own brands," Chong said.

Tse Wai-hang, co-chairman of the fair organizing committee, said the "Brand Name Gallery" was also a platform for promoting Hong Kong labels. He added that Hong Kong manufacturers were developing mid-range branded watches to tap the vast mainland market.

Tse also called for more showrooms to be set up in Hong Kong to display and sell local brand-name products. He said such showrooms would appeal, in particular, to visitors from the mainland who were drawn to the quality, style and prices of Hong Kong branded watches.

(HK Edition 09/04/2003 page7)