ABF Digital Magazine-May Issue

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VOLUME 7 ISSUE 1

DEVELOP YOUR BUSINESS IN CHINA

Refine Your China Strategy

AUSTRALIA CHINA BUSINESSWEEK 2015 CHINA BUSINESS MISSION

UNDERSTANDING OF THE CHINESE CONSUMERS WWW.ABF.EVENTS

NEW OPPORTUNITIES OPEN FOR TASMANIA

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ACBW 2015 HOBART The Hon. Will Hodgman MP The Premier of Tasmania

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very warm welcome to the Australia China Business Week being held for the first time in Hobart.

Last year’s visit to Tasmania Tasmania by by the the President of the People’s People’s Republic Republic of of China, Xi Jinping, and Madam Madam Peng Peng was was a most historic occasion occasion that that opened opened up greater economic, diplomatic diplomatic and and I am sorry that I will not be there with cultural opportunities for our future. you in person, as I will be leading a with TasInvest TasInvest 2014, 2014, Tasmanian Government delegation to The visit coincided with China – my second visit to the country a highly successful trade trade and and invest invest forum that showcased a broad broad range range of of since becoming Premier. opportunities across Tasmania.

Hosting Australia China Business seen increased increased Week in Tasmania recognises the Recently we have seen significant relationship the state has with interest in Tasmanian produce produce and and large increase increase China, and is a demonstration of the expertise in China and aa large Chinese tourist tourist visiting visiting importance the Tasmanian Government in the number of Chinese places on further strengthening these the state. connections.

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extend a warm welcome to over 1800 delegates, VIPs, speakers, sponsors, partners and a senior Government led delegation from Fujian Province, who will attend ACBW Melbourne and the inaugural ACBW Hobart Forums.

Now in the eighth year Australia-China BusinessWeek (ACBW) has developed into an excellent platform for companies already engaged in or about to enter the China market. ACBW Forums provide valuable keynote speakers, panel discussions, senior government representatives and beneficial case studies from Industry and China Experts on topics designed to fast track entry and engagement with China.

My visit visit to My to China China isisfocussed focussedonon strengthening our economic, strengthening our economic,cultural cultural and intergovernmental and intergovernmentalrelations. relations.It is It isimportant importantthat thatTasmania Tasmaniamaintains maintains this momentum.

While some of this momentum. While some of these these opportunities may take some opportunities may take some time to timerealise, to fully we realise, we are no wasting fully are wasting time in no time in pursuing them. pursuing them.

And itit is And is also also pleasing pleasing totosee seeso so many visiting Tasmania during many visiting Tasmania duringthisthis year’s Australia AustraliaChina China Business year’s Business Week Week activities. activities.

On behalf behalf of of all all Tasmanians On Tasmanians II extend extend a a warm welcome trust warm welcome andand trust youyou will will enjoy a productive and constructive aenjoy productive and constructive time on timebeautiful on our beautiful our island. island.

WITH THE AUSTRALIAN CHINA CONNECTIONS MOVING FORWARD TOGETHER WITH THE PENDING IMPACT FROM THE CHINA FREE TRADE AGREEMENT, ACBW HAS REACHED A NEW MILESTONE WITH THE EXPANSION OF AUSTRALIAN FORUM SERIES ACROSS MELBOURNE, HOBART, BRISBANE, ADELAIDE AND SYDNEY.

sors including, AusPost-Star Track, UnionPay, Invest HK, Tasmania Government, supporters such as Austrade and other key government departments, as well as the support of the office of the Consul General of the Peoples Republic of China in Melbourne contributing to this major business event.

In addition the ACBW 2015 China Forum now in the third year returns to Guangzhou & Xiamen from the 6th to 11th September.

I hope you enjoy and benefit from this year ACBW Melbourne or Hobart Forum and I look forward to welcoming all the delegates who are attending the ACBW 2015 China Forum in May.

I thank my dedicated colleagues the “ABF A Team “ who together with spon-

To the forum moderators and speakers thank you for your valued input and participation.

Ray Evans CEO & Founder, Australian Business Forum

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AUSTRALIA-CHINA BUSINESSWEEKMELBOURNE & HOBART

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he Australia China BusinessWeek (ACBW) 2015 roadshow kickedoff in Melbourne & Hobart in March. ACBW 2015 Melbourne hosted over 1200 delegates from Australia & China, with over 50 high profile presenters across multiple industries.

Highlights of ACBW 2015 Melbourne

included the attendance of a government led delegation of businesses and investors from Fujian Province, China and addresses from the Premier of Victoria, Hon. Daniel Andrews MP, Consul-General of the PRC in Victoria, Mr Yumin Song and CEO of Australia Post, Mr Ahmed Fahour at the ACBW 2015 Melbourne Keynote Luncheon.

THE RELATIONSHIPS FORMED BETWEEN THE VICTORIAN AND CHINESE COMMUNITY OVER THE PAST 150 YEARS WILL ONLY STRENGTHEN WITH THE RATIFYING OF CHINA AUSTRALIA FREE TRADE AGREEMENT. THE IMPACT THAT THE CHAFTA WILL HAVE ON ENHANCING TRADE, IMMIGRATION AND CULTURAL EXCHANGE ACROSS VICTORIA AND CHINA CAN ONLY IMPROVE VICTORIA AND THE WIDER AUSTRALIA COMMUNITY IN THE 21ST CENTURY. The Hon. Daniel Andrews MP Premier of Victoria

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Australian and Chinese delegates to Australia-China BusinessWeek 2015 Melbourne were treated to in-depth information sessions across the two days including the bilingual ACBW Forum, presented in English and Mandarin, the Agribusiness Forum and Pathways to China Forum.

The government-led delegation of business and investors from Fujian Province attended activities at Australia China BusinessWeek 2015 Melbourne, with delegates attending a select business matching session and networking cocktail function with local Australian businesses.

BY 2030, AROUND ONE BILLION CHINESE ARE EXPECTED TO BE MIDDLE CLASS, THEY WILL WANT TO EAT BETTER QUALITY FOOD AND IN THE LONGER TERM THEY WILL NEED FOOD SECURITY. THE ‘COLD CHAIN’ THAT SUPPORTS THE INTERNATIONAL TRADE IN FRESH FOOD, HAVE TO BE AREAS OF FOCUS FOR OUR ECONOMY. Ahmed Fahour

CEO, Australia Post | StarTrack

Australian and Chinese delegates to Australia-China BusinessWeek 2015 Hobart were treated to in-depth information sessions on the latest insights and opportunities within the Australia-China business sector across multiple industries. Topics such as, the state of the Australia-China Free Trade Agreement, The New Role of Hong Kong in the Asian Century, How to reach your Chinese consumers online and the state of the Chinese economy in 2015 were presented to over 100 delegates during these forum sessions.

The inaugural Australia China BusinessWeek (ACBW) 2015 Hobart took place on Friday March 27th, at the Wrest Point Hotel. Over 150 delegates from across Australia and China attended this event, with 15+ key leaders presenting on topics across the Australia-China business sector.

Highlights of ACBW 2015 Hobart included addresses from Acting Premier of Tasmania, The Hon. Jeremy Rockliff MP, Commercial Consul of the PRC, Mdm Liu Yu, Coordinator General of Tasmania, John Perry and Minister for State Growth, The Hon. Matthew Groom MP.

WITH BOTH AUSTRALIA AND CHINA’S ECONOMIES ARE ON THE PATH OF TRANSFORMATION, THE POTENTIAL FOR FUTURE COLLABORATION IS GREAT. I WOULD ALSO LIKE TO ACKNOWLEDGE THE WORK OF THE VICTORIAN GOVERNMENT IN STRENGTHENING AUSTRALIA-CHINA TIES.

Song YuMin

Consul General Consulate-General of PRC in Melbourne

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The significance of the last year’s visit to Tasmania by Chinese President Xi Jinping is unprecedented.

Businesses have the opportunity to gain tangible and lasting benefits in this growing market with immense interest in Tasmania. For the first time ever, Australia-China Business Week will be held in Hobart on Friday, 27 March, and will provide insights for business experienced in China as well as those new to the market.

For details and to register, go to http://abf.events/acbw2015/hobart

Department of State Growth

ABF Digital Magazine

By Wayne Johnston President, Tasmanian Farmers and Graziers Association

NEW OPPORTUNITIES OPEN FOR TASMANIA

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here is no doubt that the ChinaAustralia Free Trade Agreement (ChAFTA) delivered Tasmanian farmers more than we had realistically expected and will open up more trading opportunities down the track that we cannot foresee at the moment. Part of the reason for that is that Tasmania is undergoing a transformation with new irrigation schemes that should pave the way for diversification and intensification of production on our farms.

The immediacy of free trade between Tasmania and China is somewhat illusory given that Chinese tariffs on dairy products will continue for the next four to nine years, on beef for nine years and on sheepmeat for eight. For vegetables, it will be four years before tariffs are eliminated.

China is already our Tasmania’s biggest trading partner. In 2013/14 we exported $610 million of goods to China, more than twice as much as we sent to Taiwan, our second biggest customer.

Of course, the lion’s share, more than half, was in ores and concentrates and processed metals

In individual agricultural commodities we shipped $31 million worth of dairy products, $3 million in fruit and vegetables, $3.2 million in meat, $17 million in seafood.

The TFGA believes that Tasmania is well placed to benefit from the free trade expansion – through increased production and increased Chinese financial investment here. The fact that we are in the southern hemisphere means that our main production season is counter-seasonal with the northern hemisphere and therefore adds scope for us to expand product availability in the Chinese markets. Also we will be able to assist Chinese farmers in improving their own productivity.

As mentioned, we will have to wait for nine years for free trade in dairy products with China, but, in contrast to the New Zealand agreement, Australia will only face a discretionary safeguard on whole milk powders, with the trigger volume set well above current trade levels. For all other dairy products Australia will receive unlimited preferential access.

The current tariff on beef ranges between 12 and 25 per cent and will be gone in nine years. Similar tariffs on sheepmeat will be gone in eight years.

We think that this gradual removal of the tariff burden will have an immense impact of the profitability of Tasmanian sheep and cattle producers. It will give us a distinct advantage over other countries that are also vying for attention in the Chinese market.

ChAFTA is good news for Tasmanian wool. China already accounts for 75 per cent of Australia’s raw wool exports and our quota of 287,000 tonnes is only taxed at one percent. An exclusive Country Specific Quota of 30,000 tonnes clean wool will grow by five per cent each year till 2024.

With Tasmanian fruit and vegetables, the main benefit in the agreement is the elimination of the 10-30 per cent tariff within four years.

Anything that gives us improved access to the Chinese market has to be seen as positive, particularly as we have trailed New Zealand by six years in getting a free trade agreement with China. www.ABF.Events

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AUSTRALIA CHINA BUSINESSWEEK 2015 CHINA BUSINESS MISSION Now in its 3rd year, Australia China BusinessWeek (ACBW) China Mission returns in 2015, taking SME delegates to the most prestegious UFI-approved Chinese investment and trade exhibition - China International Fair for Investment and Trade (CIFIT). Supported by the Chinese Central Government and Ministry of Commerce, CIFIT has been running for 18 years and have attracted the hightest level of interest and engagement from China and overseas.

The 2015 ACBW China Mission starts in Guangzhou on Sept 6th with an essential prep session on China’s knowhows with local industry organisations and chamber of commerce. Delegates will then be able to showcase their services and products at the ABF Pavilion of over 200 SQM along with a three-day program including seminars, business matching, site visits and networking functions, co-organised by the Fujian Government.

WHO SHOULD ATTEND?

ACBW 2015 China is ideally positioned for the SME Business sector to develop their China strategy and expand SinoAustralian trade, commerce and investment across key industries.

Now in the third year this high profile annual China business delegation is an ideal platform for two important SmallMid Market enterprise sectors.

CHINA EARLY ENTRY DELEGATES

ACBW 2015 China program has been developed to provide a platform for early entry delegate companies to maximize their participation which includes a comprehensive evaluation of marketing and Chinese language materials, in-depth business matching process including distribution of delegates information to Chinese companies who will attend the Forum in Guangzhou & Hong Kong.

A detailed briefing prior to departure also assists in preparing delegates as well as providing an opportunity of meeting other delegates who will also be attending. On return post event review and debriefing is undertaken.

CHINA INTERNATIONAL FAIR FOR INVESTMENT AND TRADE (CIFIT) CIFIT is currently China’s only international investment promotion event aimed at facilitating bilateral investment. It’s also the largest global investment event approved by the Global Association of the Exhibition industry. CIFIT has the following major components: investment and trade exhibition, the International Investment Forum (IIF), a series of seminars on hot investment issues, and investment project matchmaking symposia.

CIFIT not only comprehensively showcases the investment environments, policies, projects and corporate products in all provinces, autonomous regions and municipalities t in China, but also attracts investment promotion agencies from more than 40 countries and regions.

DEVELOP YOUR CHINA STRATEGY ENGAGE WITH CHINESE INVESTORS Australia-China BusinessWeek 2015 8-15 Sept, Xiamen & Guangzhou

www.ABF.Events

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ABF Digital Magazine April Issue

ABF Digital Magazine

HONG KONG WHERE BUSINESS GOES TO GROW

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ong Kong has long been home to a variety of Australian companies looking for a foothold in Asia. It is an ideal hub for business given its low and simple tax regime, ease of setting up, strong rule of law, world-class infrastructure, proximity to Mainland China and some of Asia’s fastest growing markets. The city’s international culture, dynamism and bustle are second to none.

The startup scene in Hong Kong has grown rapidly through the concerted efforts of the broader startup community. In 2013, InvestHK launched the StartmeupHK Venture Programme which included a one-stop portal for startups (www.startmeup.hk), a global business plan competition, integrated social media-led marketing, and a Venture Forum to promote Hong Kong as a startup destination.

Hong Kong is home to an estimated 80,000 Australians. Over 600 Australian companies do business in Hong Kong, with many of them using the city as a springboard to Mainland China. These businesses are a diverse and vibrant group and active in insurance, building, road construction, telecommunications, banking and education.

products (Aesop), ICT (AccessHQ), food and beverage (Wooloomooloo Group), business and professional services (King & Wood Mallesons), and financial services (ANZ).

Setting up a company in Hong Kong is easy and inexpensive and is made even easier with the ongoing support of InvestHK. The department has industry specialists in eight priority sectors: Business & Professional Services, Consumer Products, Creative Industries, Financial Services, Information & Communications Technology, Innovation & Technology, Tourism & Hospitality and Transport & Industrial. It partners with clients on a long-term basis and is available at any stage of their business development process.

InvestHK’s services are free, customised and confidential.

CONTACT US NOW InvestHK Sydney Office Luca De Leonardis, Head (Australia and New Zealand) Address: Hong Kong Economic and Trade Office (Sydney), Level 1, Hong Kong House, 80 Druitt Street, Sydney NSW 2000, Australia Tel: (61) 2 9283 3222 Fax: (61) 2 9283 3818 Email: Luca_de_leonardis@ hketosydney.gov.hk

STAY TUNED Website: www.investhk.gov.hk LinkedIn: www.linkedin.com/ company/invest-hong-kong Twitter: #investhk Youtube: www.youtube.com/user/ investhk

InvestHK has been actively supporting Australian businesses to set up or expand their business in Hong Kong.

Examples span across a wide range of businesses in sectors such as consumer

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ABF Digital Magazine

UNIONPAY INTERNATIONAL INKS KEY DEALS TO FACILITATE AUSTRALIA-CHINA RELATIONS New partnerships with Australia Post and Westpac highlight the role of UnionPay International in facilitating business relations between China and Australia

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ith a number of successful ventures between Australia and China announced during and immediately following the recent G20 meeting in Brisbane, UnionPay International has announced key agreements with partners Australia Post, Westpac and NSW Government, to improve and simplify business transactions between the two countries.

In addition to being part of the prestigious Australia–China CEO Roundtable Meeting in Canberra following the G20, UnionPay International has also launched Australia’s first UnionPay multi-currency travel card with Australia Post, to support the 800,000 Australians who travel to China annually for business or leisure.

majority of immigration and international An agreement announced with Westpac will add to the network of ATMs and students to Australia. point-of-sale (POS) devices that A partnership with Destination NSW, the State Government’s tourism and major events agency, encourages Chinese people to visit and spend more in Sydney and NSW, with rebates and significant discounts offered to people travelling and shopping with UnionPay cards while in NSW. The Australia Post / UnionPay ‘Load & Go China’ prepaid travel card can hold both Australian and Chinese currencies Left: Brian Hartzer, CEO, Westpac; simultaneously, and be used to securely Right: Ge Huayong, Chairman, China UnionPay access cash, as well as make payments in China and around the world, wherever accept UnionPay cards, building on UnionPay cards are accepted. It will be partnerships with National Australia available from more than 4,000 Australia Bank, Commonwealth Bank of Australia and Australia Post.

UnionPay cards are now accepted across all ATMs under the Westpac Group, including the St. George Bank, Bank of Melbourne and Bank of South Australia, and will be accepted by all Westpac POS devices in the near future.

Speaking in Canberra, Chairman of UnionPay International Mr Ge Huayong said China was Australia’s ‘number one’ trade partner, as well as the source of the

The increasing use of UnionPay cards by Australian consumers and businesses will facilitate the retail and finance elements of the China-Australia Free Trade Agreement, enabling easier and Post Offices from December 2014. The simpler financial transactions between card also provides exclusive discounts the two countries. and offers at selected hotels, tourist and shopping destinations.

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info@abf.events www.ABF.Events ABF Digital Magazine Issue 9898 03April 8689

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ABF Digital Magazine

UNDERSTANDING OF THE CHINESE CONSUMERS

By Benjamin Sun, Director of Think China

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arketers need to understand that the difference between the China and Australia markets is not only about the “Great firewall” and language barriers, but more importantly, the consumer motivations and behaviours. In other words, why do they buy?

One important fact is the Chinese government’s implementation of the one-child policy in 1979. Demographers estimate that the policy averted at least 200 million births between 1979 and 2009. From an online marketing perceptive, today the majority of those 55% of the online population between ages 20 to 40 are from those only-child families.

In China, parents and (post-50s) of these only through the Great Leap the Cultural Revolution,

grandparents children lived Forward and and therefore

see it as imperative to provide their children with a better life than the one they experienced. Similar to parents in post-WWII America and Europe who wanted their children to benefit from the rising global economy in the 1950s and 1960s, consumer behaviour of China’s parents today reflects their desires to live vicariously through providing their children with the products and opportunities that they may have been denied.

and increasingly many foreign ones are starting to realise, may be indirectly by appealing to the Confucian values of respect for family elders. Since, there many Chinese older generations (Pre-50s) are not willing to spend money for themselves, but mainly consume for their child and grandchild.

WHAT DOES THIS MEAN TO MARKETERS?

only-grandchild. The one-child policy allows for Chinese citizens to be more financially secured than ever before, and therefore they are able to purchase more than any other previous generation. It is important for Australian marketers to understand this social phenomenon in order to create more effective marketing campaigns to target their audience.

The age group between 20 and 40 is a huge market and, unlike their elders, they like to try new things, are happier to indulge themselves, are more brandconscious and are more receptive to foreign ideas. On the other hand, the best way to reach China’s older generation, as most local companies

Today, the Chinese family looks more like a funnel. ‘Post-50s’ are giving full support to their only-child and indeed

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October 1983

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32 years on, we understand ASIA OVER more than three decades, Asia Today International has established itself firmly as Australia’s most authoritative business journal reporting on Asia – a first reference source for both international corporations and SMEs trading, investing and providing services to business in Australia and Asia.

We have earned our special credibility, which brings with it access to the people who matter in business and government – and the critical business information that business leaders need.

We look forward, assessing issues with potential to impact on existing and future business, drawing input from business and government leaders in Asia and across the world. We identify social and political change likely to impact on existing business – or to create new business opportunities. We remain committed to excellence in reporting the business that matters in Asia.

To join our subscriber lists, visit www.asiatodayinternational.com

Your subscription covers ATI Magazine, password access to daily online updates, our subscriber e-brief alert, and a free online listing in our Asia Directory of the products and services you offer.

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ABF Digital Magazine April Issue

16 | DECEMBER 2014/JANUARY 2015

ASIA TODAY INTERNATIONAL

INTERNATIONAL

ABF Digital Magazine

M10, Level 2 ( Mid Level ) Southgate Restaurant & Shopping Precinct 3 Southgate Ave, Southbank, VIC 3006 TEL : 03 9699 4170 WEB: www.redemperor.com.au

R

ed emperor Chinese restaurant has been a popular Southgate establishment in Melbourne for more than 20 years.

Come and dine in our newly refurbished setting, with superb views overlooking the Yarra River and the Melbourne City Skyline.

New dishes using superior ingredients have been added to our true and tested hallmark menu, prepared by our highly experienced chefs, with a loving heart and eye for detail.

We do not add MSG in our cooking and pride ourselves on catering to requests and many dietary requirements, such as gluten-free.

Whether it’s a professional corporate function, or an intimate dinner for two, you can expect impeccable service from Red Emperor. Please either trusts our knowledgeable staff to tailor makes your meal according to your requirements or chooses from our many banquets and a la carte menu. Our corporate all inclusive Food and Beverage Packages are also highly suitable for larger family dinners besides corporate functions.

Red Emperor’s daily yum cha is also considered by many to be one of Melbourne’s best. We pride ourselves for making every yum cha items daily in-house to ensure freshness and quality Reserve a table early to avoid disappointment.

Car parking facilities are available at Southgate Precinct.

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ABF Digital Magazine

HOBART'S FIRST CHOICE FOR SPECIAL EVENTS

By Hannah Martin

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HE inaugural Australia China Business Week 2015 will be held at Wrest Point, following Chinese President Xi Jinping’s historic visit to Hobart.

Wrest Point is well placed to hold this important event, following their involvement with President Xi’s visit to Tasmania and the inaugural TasInvest Summit, last November.

Several presidential staff were based at Wrest Point in the months leading up to President Xi’s visit and Wrest Point General Manager Lyndon Adams said it was an unprecedented opportunity to establish important connections with the Chinese community.

He said the TasInvest Summit was also an important opportunity for potential investors to learn more about Tasmanian industries.

“We were proud to host this landmark event at Wrest Point, which showcased the very best of Tasmania, including

the state’s many commercial and investment opportunities,” Mr Adams said.

“We are at an exciting point in our state’s history, where more and more people from around the world are interested in learning about the opportunities that exist in Tasmania and the enviable lifestyle we enjoy down here.”

Wrest Point provided a range of services and facilities for these two important events, and is Hobart’s premier choice for accommodation, dining and entertainment.

“Here at Wrest Point we’re proud to have a connection to the people and the great stories of this island state that stretches back more than 175 years,” Mr Adams said.

“Our iconic tower is indelibly linked to the Hobart skyline and is an instantly recognisable landmark.

“The

fact

so

many

individuals, businesses and organisations choose to host their important events at Wrest Point shows we are Hobart’s premier choice for accommodation, dining and entertainment.”

Wrest Point welcomes more than 1.5 million visitors each year and is home to Hobart’s largest and best conference facilities.

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