Kai Tak Sports Park needs strong event pitch to attract visitors

Hong Kong’s biggest stadium may need to host 150 events of different sizes yearly to be commercially viable.

Hong Kong should offer more “exciting” events at the 28-hectare Kai Tak Sports Park to maximise revenue from sports and music tourism, which is expected to skyrocket to a $11.7t ($1.5t) industry by 2032, analysts said.
The city’s largest stadium, which is set to open on March 1 after delays and cost $30b to build, has only managed to book four events so far, including the Rugby Sevens and Coldplay concerts, according to the Kai Tak Sports Park website.

Andrew Kinloch, managing director at Logie Group Limited, floated the idea of an ice skating show at the 10,000-capacity Kai Tak Arena.

“Is it possible to do something completely new that other existing, albeit older venues, have never been able to offer?” he told Hong Kong Business in a video interview. “I don’t know the answer to that, but someone needs to be out there thinking about how to bring in new, exciting, different events that people will want to come in.”

Kinloch, who offers specialist advice on infrastructure finance in Asia, said there has been a commitment to host at least 40 sports events at the 50,000-seater stadium and 76 events at the arena yearly.

To be commercially viable, Kai Tak Sports Park must host 100 to 150 large events across its three venues, each with reasonably priced tickets, Dan Voellm, CEO and founder of AP Hospitality Advisors, said in the same interview.

He said the government and private sector should evaluate how much revenue it should target from both locals and foreign tourists. “One thing the government can probably do is step back a bit and give events a wider berth, so to speak, in terms of what can take place. That is really the opportunity I think we have here.”

The sports and music tourism industry is forecast to become an $11.7t industry in seven years, according to Collinson International Ltd., which owns Priority Pass and LoungeKey airport lounges around the world.

Hong Kong should consider hosting a cricket event at the stadium given its popularity, Voellm said. “Cricket is something that Hong Kong currently doesn’t cater to with a good facility.”

Last year, the Hong Kong Sixes took place at the Mission Road Ground in Mong Kok, a smaller venue with a capacity of just 3,500 seats. The Kai Tak stadium is as big as the Ajinomoto Stadium in Japan and Incheon Munhak Stadium in South Korea, according to Prudence Lai, a consultant at data analytics firm Euromonitor International.

Voellm also said that Kai Tak Sports Park could consider hosting motorsport events such as Monster Truck shows, the Race of Champions, or Supercross races.

"Extreme sport festivals such as XGames Asia may be another option," he added.

‘Spillover effects’

German online data platform Statista estimates the revenue of Hong Kong’s cricket media and ticket sales to hit $2.8m (US$357,700) this year.

As consumer spending remains subdued, events at the Kai Tak Sports Park should cater to different income levels, Voellm said. Premium-priced concerts like Coldplay may not be viable throughout the year, he added.
It may take a year or two to gauge how effective the sports park will be in attracting more tourists to Hong Kong, he said.

Lai said the park is a valuable addition to Hong Kong’s tourism and retail industries.

“The establishment of Kai Tak Sports Park brings in immediate spillover effects to businesses in the Kowloon City and Kai Tak area with increased traffic,” she said in an emailed reply to questions. “Especially amongst tourists, consumption power has been very concentrated in key areas such as Tsim Sha Tsui, Central, and Causeway Bay.

The sports park is expected to draw tourists from key areas, benefiting retailers, restaurants, and hotels in surrounding districts, she pointed out.

Food service providers in the area stand to benefit the most since event goers often dine near the venue. Businesses in the Kai Tak area should provide a seamless experience for travelers by improving accessibility, store location, and digital connectivity for services such as hotel check-ins and dining reservations, Lai said.

They should also cater to impulse purchases before and after events.

“Especially with potential impulse consumption and purchases before or after attending the event, players should consider providing flexible product collection services or complimentary product delivery to hotels,” she added.