HK closes the auction gap

Hong Kong’s chief secretary Henry Tang Ying-yen said that Hong Kong would soon surpass the US as the biggest wine auction centre in the world.

Speaking at the opening ceremony of the third Hong Kong International Wine & Spirits Fair this morning he announced: “We are set to take a bite out of the Big Apple so please watch this space.¨

Looking back at the explosion of fine wine sales at Hong Kong auctions since the duty on wine was abolished at the beginning of 2008 he said, “Wine sales at auction more than doubled from US$27 million in 2008 to US$64m in 2009, and last year we overtook London to become the world’s second largest wine auction centre behind New York. And,¨ he continued, “so far this year, sales have already amounted to US$120m which is almost double the full year figure on 2009 – and more auctions have been planned in the coming two months.¨

He also noted that wine imports have “surged¨ to US$600m for the first 9 months of 2010, which he added, “is more than the whole of last year.¨

The chief secretary added that this growth in wine sales has benefited many related businesses in Hong Kong such as catering, tourism and warehousing as well as wine education.

“The business potential has been unlocked or perhaps it would be more appropriate for me to say uncorked,¨ he joked.

He concluded by stressing Hong Kong’s benefits as a wine hub including “location, regional connectivity, world class infrastructure, and low tax¨ and said that according to Vinexpo/IWSR forecasts, “wine consumption in mainland China is expected to exceed 100m cases by 2013¨.

“Hong Kong is well placed to take advantage of this trend,¨ he stated.

2010 marks the third year Hong Kong has held a wine and spirits fair and this year is the biggest, having attracted over 700 exhibitors.

After France last year, Australia is the 2010 wine fair “partner country¨, while 2011’s will be Italy.

Patrick Schmitt, reporting from Hong Kong, 04.11.2010