Michael Denmark, founder and chairman of the Great Entertainment Group, is on Straight Talk this week.
Denmark, who recently brought Cirque Du Soleil to Central, has been the creative force behind some of Hong Kong’s most iconic attractions, including the AIA Carnival, AIA Vitality Park, and the Hong Kong Observation Wheel. He talks about how he and his team have been transforming the Central Harbourfront into a vibrant hub for world-class events and experiences.
Check out the full transcript of TVB’s Straight Talk host Dr Eugene Chan’s interview with Michael Denmark:
Chan: Good evening. I'm Eugene Chan on Straight Talk, and joining us is Michael Denmark, founder and chairman of the Great Entertainment Group. Denmark has been the creative force behind some of Hong Kong's most iconic attractions, including the AIA Carnival, AIA Vitality Park and the Hong Kong Observation Wheel, which together have a combined ticketed attendance of over 10 million consumers. For over a decade, he and his team have been transforming the Central Harbourfront into a vibrant hub for world-class events and experiences. Welcome to Straight Talk, Michael!
Denmark: Thank you, Eugene! It's a pleasure to be here. Delighted.
Chan: Yes. Thank you for coming. So, after seven years’ absence, Cirque du Soleil has come back to Hong Kong with its production Kooza, which just closed on Sunday after running a good six weeks at the Central Harbourfront events space. So, what brings the show back after the last show here in 2018?
Denmark: I think the world since 2018, as we all know, has changed. Changed quite a lot. And like all entertainment properties, Cirque went through their journey, and they were very keen to come out of North America for the first time in a long time. We were lucky enough to secure them to come to Hong Kong as the first stop in the Asian tour. And they had very fond memories of Hong Kong. They first came to Hong Kong 30 years ago with Alegria. In 2018, they had a very good run with Kooza, and they were very keen to come back. So, for us as a producer in Hong Kong, it was a wonderful opportunity to work with, literally, I believe, one of the best, if not the best, touring entertainment properties in the world.
Chan: Michael, I sort of had a good chat with you. I know that you’re in Hong Kong for over, like, 30 years, and you have always been into the entertainment industry, and you were involved in helping bring the Phantom of the Opera and also some very great names to Hong Kong. So, what is the vision of your company, or what are you trying to do to Hong Kong by bringing Cirque du Soleil back to Hong Kong this time?
Denmark: I think you know, in the last two years, since the border has opened and since the masks have come off, we've all collectively been working together to bring Hong Kong back to its former glory and indeed into a new position within Asia as Asia's event capital and Cirque du Soleil, and in particular, Kooza, which is their classic circus performance was the right property to bring to Hong Kong because we know that the local community already enjoyed the show, but the opportunity to market to our neighbors now in the Guangdong-Hong Kong-Macao Greater Bay Area and share this world class performance with a broader audience of 80 million people, as opposed to the 8 million in Hong Kong was really too good an opportunity to miss.
Chan: Right, I'm sure many of the viewers like myself who have been through Hong Kong in the last few decades have seen different types of entertainment, like circuses when we were young; we have seen horses, monkeys and all these people flying around and all that. How has all these performances sort of developed until today, because not everybody has the privilege to have attended the show, but I'm sure they'll come back. Can you just tell them what has changed over the years?
Denmark: Well, I think the images of the Greatest Showman movie and the elephants and the tigers and the lions and that traditional impression of circus is pretty much left now in the 20th century. I think the idea of touring with animals and having animals perform has been left behind, and the performance of essentially some of the best world class athletes there are, and with the creative force that has come out of Montreal, from Cirque du Soleil, in transforming what we all traditionally thought was a circus has become very much the norm, and the expectation of the theatre, combined with that athletic performance and the live music has had crowds in Hong Kong ... In fact, I'm smiling because we closed the show on Sunday, and we finished with 125,000 tickets, which is a huge success, and just, I'm smiling because we've just put a lot of smiles in a lot of people's faces, which has been wonderful to see.
Chan: I had the privilege to actually attend one of the performances, and I'm quite impressed with all those acrobatics, not to mention those vibrant costumes. Yes, I mean, it's very colorful. It's a happy thing, especially after a hard day’s work; it's not a bad place to go at all. Why do you use, or choose, the Harbourfront space to do it?
Denmark: One of Hong Kong's many attributes, in my opinion, is that the Hong Kong Harbourfront is an iconic skyline, and unlike many cities around the world we were discussing this with the other day, Hong Kong has had the foresight and the vision to keep a space on the Harbourfront in the middle of the beautiful skyline, predominantly for entertainment and events. And so that is the, the prime location in Hong Kong, if you're bringing a temporary event to Hong Kong to be able to produce there. It's a wonderful location as far as travel and logistics are concerned. It's a photographer's dream. Everybody wants to have their picture taken there and to the theatre of coming to town with the big top. Building the big top up on the Harbourfront. The entire market is filming, taking pictures. The media is talking about it. And I passionately would say that this is probably the best location in the world to be building a big top of that scale with 2,500 seats in it, and creating a buzz. It's, you know, equally, okay, this is a traveling circus, so they end up in different places around the world. But for us, I think Hong Kong is spoiled to have that location. And certain to say, the CEO came over recently, and they had just been in a couple of cities in America, and he said, it's just so good to be back in this location. We feel special. We know that we're the jewel in the crown of the skyline. And so it's a very positive location.
Chan: I think when you talk of a big top. For the benefit of viewers. It is a 19-meter-tall sort of structure, and actually 51 meters in actual diameter. So, quite a large tent, if you actually drive along the Hong Kong Harbourfront, you actually see it from the other side, from Kowloon as well.
Denmark: Correct.
Chan: Yeah, and it's not cheap. I mean, it's cost you HK$4 million in building, but only actually 11 days.
Denmark: Yes. I mean that none of producing any of these shows in Hong Kong is cheap, right? But if you get it right, as we have done this time, the objective for all of these things is two things: one, ensure that we're putting smiles on faces; and try not to lose any money while you're doing it. And I think you know, the way of, for me, the secret sauce of how to do that is to work with the right partners to… in advance, to share the vision, the journey and the loads. And if I may, say that this show wouldn't be with us now, unless we partnered with the visionary, Amy Lowe at UBS, who I know you know well, and UBS have been a great supporter of a number of the projects we've done over the years. And when Cirque was tabled, it was an immediate “yes”, the opportunity for them to showcase their commitment to the community both Hong Kong and the Greater Bay, and share the tickets with their teams, their clients, and again, the broader community. It was too much for Amy. And she was great actually, on those opening nights, on the stage. But yes, UBS combined with it, the private sector, combined now with the government. And I saw Rosanna was on the show a few weeks ago from the CSTB, and currently, in my humble opinion, over the 30 years I've been here, there is a harmony right now between the government and the private sector. We're sharing the same objectives with regards to what we all want to achieve for Hong Kong. And there is a collaborative nature that is working unlike it's ever worked before,
Chan: Michael, since you mentioned that it's quite costly, sort of a sort of setup for the performances, it is said that it's expected to generate over HK$120 million in terms of social, economic value, something that I like you to enlighten us, because I know the tickets are not cheap. But most people who have been there say that “when is the next time?” So, it shows that people will appreciate having something like that in Hong Kong. How does that help Hong Kong? Why does it bring over HK$120 million sort of in value?
Denmark: There's a huge amount of advertising that happens. We hire a huge workforce, like we do with the Carnival. When we have the Carnival, we have 3,000 in the local team, with Cirque du Soleil, it's been in the hundreds. There's been, of that 35,000 people … in 2018 there were 90,000, this time of 35,000, the majority of that 35,000 have come from overseas.
Chan: Right.
Denmark: And 80 percent of that 35,000 have come from Greater Bay or beyond in China. And it's been really interesting for us, because the particular price, as you say, it's a higher ticket price. So, the average ticket price is HK$1,000. But we're we also have the Hong Kong Observation Wheel, where we have a HK$20 price tag, and then we have the Carnival, which is about a HK$200 and the reason I bring those up is because we're getting used to the consumers both. We know the Hong Kong consumer very well, but we're working very closely with 80 percent of our 2.5 million people that go on the wheel are from China, and they're the sort of tourists that come in for three or four hours. They go on the wheel and then they spend their HK$400 a day in different places around Hong Kong. And then they leave. This particular target, targeting the higher net worth, as it were, of tourism to come down. We believe many of them were coming and staying overnight in hotels, going out for dinner. And this has been the target that's been slightly elusive in the last few years. And we, collectively as producers, are working with the government, have been really focused on what we can do to attract them to Hong Kong, to stay overnight and spend more. And I believe that bringing something world-class, such as Cirque du Soleil that you cannot get in Shenzhen or Guangzhou or anywhere in the Greater Bay, is something that adds to the attraction. I believe Hong Kong is one of the best cities in the world to travel to as a tourist anyway. But if you can bring something that gives them the hook for another reason to come back, that can't, you can't get in in Shenzhen or anywhere in the Greater Bay, then we're winning. And I believe that's what's happened, and that's where the added economic value comes.
Chan: And that's why we’re only having Straight Talk in Hong Kong as well.
Denmark: Correct, correct.
Chan: Anyway, let's take a break now, and viewers, stay with us. Don't go away.
Chan: Thank you for staying with us. Michael Denmark, founder and chairman of the Great Entertainment Group, is sharing with us why he has brought Cirque du Soleil back to Hong Kong. So, Michael, one thing that I am sure the viewers have sort of picked up, I mean, the message you said is Hong Kong is very attractive, especially as a sort of Asia's event capital, as well as the government and the private sector are now working well to make this happen. So, from your perspective, and you mentioned earlier, Cirque du Soleil did select Hong Kong as the place to come back to Asia, so what niche does Hong Kong has compared to other Asian cities like Singapore, or even others, say, in the GBA? What makes Hong Kong so special?
Denmark: Well, we have the history. You know, before 1997, the English language, the variety of business approaches were culturally there, now combined with the last 25 years, post the handover, we have got this young dynamic business minds in Hong Kong. Hong Kong geographically is not very big, so what I have found … I was just in London a few weeks ago, and it is impossible to get more than two or three good meetings in a day …
Chan: Oh, really?
Denmark: … because you are so far to travel. In Hong Kong, if you are traveling for more than 20 minutes, it is an unfortunate time. But you are also travelling within those 20 minutes to see decision makers, and you are seeing decision makers who want to get things done. Hong Kong, I believe, in every industry, shares a drive and enthusiasm for business, unlike anywhere else in the world. You can pitch an idea in the afternoon, and you can be closing the deal tomorrow because people want to get things done. And I have experienced that over 30 years, and it has not changed, it has got better, apart from getting stronger and stronger. And as I mentioned, this collaboration before with regards to the government and private sector, I guess the Stadium would be a wonderful example of vision combined with execution over a 10-year period. And now in the last six months, we have seen more entertainment than we have ever seen in a compressed time frame. From the, obviously, the Sevens opening in the end of March, all the way through to now, all the different Canto and Mando pop shows. And we have got the games coming up, the China games. But during the summer, we have got more international football than we have ever seen. We have got Cristiano Ronaldo coming with his team, we have got Arsenal and Tottenham, and Italy … not Italy, yeah, AC Milan and Liverpool.
Chan: Yes.
Denmark: None of this would be possible without the dynamic nature of this collaboration between the private sector and the government. And it is something we should be proud of because we are not having any problem selling these tickets. These tickets are flying because everybody wants to go to the Stadium and they want to see this content. And the same with West Kowloon, M+, and the Museum. They are all thriving because of the infrastructure that is coming down from Greater Bay. And because I believe the work that has been done collaboratively to get the message out that we are open for business, we have a wonderful rich culture, we have more of the best hotels in the world, I believe, than anywhere else. We have got the best food, and we drive on the right side of the road as far as I am concerned. All of these different things add up to why it is a great place to be and do business.
Chan: One thing I must sort of add to what your descriptive of Hong Kong is, I was also in London recently, I must say that Hong Kong is very safe to walk down the street without worrying about your telephone being snatched away. Hong Kong is very safe, isn't it?
Denmark: Yeah, no crime against the person. And I would say the same, I am from London, I have been in Hong Kong for 30 years, and I am back in London now and I am having to learn the new rules. And you know, holding onto your telephone really tightly walking through central London. It is not a great feeling.
Chan: No.
Denmark: And you know, we are spoiled with regards to how comfortable we are here.
Chan: Right, so you are saying that the current state of events here in Hong Kong, because of the new infrastructure, including the Harbourfront, everything is sort of moving in the right direction, isn't it?
Denmark: Yep.
Chan: So, what type of success indicators will you use? Will you just use attendance as just one? Or what else will you sort of see that we are doing better than last time?
Denmark: In general, across the board?
Chan: Yes, in general.
Denmark: I think, you know, attendance obviously is an indicator. The reach of the stories that are being told, the narrative that is being picked up. As you know, media has changed so much in the last decade that … it is wonderful being in a traditional studio and the reach of this show will be going across far more than Hong Kong. But the user-generated content that every show now gets, whether it be a concert and people and film, everyone wants to show that they are there, but now everyone is becoming a professional editor with their phone. So, what we have just experienced at Cirque, the constant churn of wonderfully positive content that is coming from people. And when they are coming to Hong Kong for a day, they are showing that they are on the Star Ferry, they are showing they are going to the Peak, they are showing they are buying a certain piece of bread with blueberries and yogurt on, and they are showing that they are at the show. And before they have even got back to the train, they are editing and posting.
Chan: Right.
Denmark: So, the reach of everything that we are doing, the rich, colorful content that is being created, beyond what traditional people of our age used to think, was a media mix. We would do some newspapers, some radio, and some TV to promote something, it is now such a much broader multi-layered approach, with regards to influencers, KOLs, and the general public. I feel that we are in the part of the world that has actually led the charge with the influencers, and the approach to sharing all this content that Hong Kong is really benefiting from that.
Chan: Right. Michael, having said that, I must say that I have done some research as well. I mean, we have a multi-layer sort of approaches to the community. But if you look at the figures, traditional media, like television, like TVB, we are still way ahead of everything else. So, how do you see this sort of fitting with the new changed behavior of the consumers?
I mean, people often say Hong Kong must change to maintain our niche, like having bring a world-class show, including like footballs, and like the Cirque, and all that. How do you see the continuing for this momentum because Hong Kong must continue to lead? Because some people, especially in the F&B industry, are having a tough time because they are moving over to cross the border, as they so claim. How do you see that?
Denmark: Well, there is a couple of things in there.
Chan: Yes.
Denmark: TVB, number one, was one of our lead proud supporting partners in the show, and has proved to be an unbelievably powerful partner to work with, with regards to our reach, with regards to our communication to the marketplace. And that is because everybody, I believe, still has TVB at home, even though they are watching their phones at the same time. It has been a wonderful relationship. As far as the ongoing change of Hong Kong, it has changed so much in the last two years, it was literally only two years ago when the mask came off and everyone talked about the Greater Bay Area, and what it must be, and what Hong Kong must do to change. It has changed, we have evolved so quickly that, I believe, we have gone from what is it we are doing, what is the journey, to actually being here right now, from an event's perspective, I don't have the answers with regards to the broader F&B because I know that there are challenges across different sectors, the high end sectors especially because I think the makeup of business, dining and things have changed. I don't have those answers. But I do know that everybody that comes to every one of our events, comes to do the things that they are coming to do. They are coming to be entertained, but they will also eat, they will also drink, they will also take photographs of themselves and video of themselves. They know how much they are going to spend, and if you give them the opportunities to spend it, they are comfortable to do so.
Chan: Right. Michael, apart from bringing the Cirque, I mean I mentioned earlier, you also organize events around the Harbourfront even space, like you had the observation wheel.
Denmark: Yeah.
Chan: You do have the Vitality Park, you use the grounds to sort of get people there. Tell the viewers a bit more, what have you found in terms of the Harbourfront? You said that it has got a nice backdrop for photos, what else does it offer?
Denmark: Well, again, the government has worked very hard on opening up the entire front of the Harbourfront to ensure that you can walk from one side of the island to the other. So, the traffic every day on the Harbourfront is very much like a … it is a 21st century city, so you have got people running, walking dogs, you have got your locals enjoying the Harbourfront, as much as tourists. Fortunately where we are with the Observation Wheel, the Star Ferry docks there, it is a wonderful location for tourists to get off. And we know that when the train pulls in from Guangzhou in Kowloon, they are jumping off the train to get in the Star Ferry, and first stop is the Wheel. And we have been engaging doing research with a lot of these tourists to find out what they like, what they don't like, how long they are going to be in town.
Chan: Right.
Denmark: I think the … whilst we have the new stadium, there is still a very strong argument for the entertainment space along the Harbourfront. And I think, again, it is not just the 36,000 square meter space where we do the Carnival and where we have done Cirque du Soleil. But there are different pockets along the Harbourfront that are being brought to life with busking and with community events. And I am a big fan of sharing the space with the community. We work with about 400 to 500 community partners, and I believe that community is producing entertainment, whether it be a group of 33 year-old ballerinas in their tutus, or we have the old lady dance classes that come down, and everything in between. I think that is very powerful, and I think it is our responsibility to share the privilege that we have of utilizing that space on the Harbourfront. And not just focusing on the tourism, but sharing it with our local residents to share their culture because in turn that is actually now called content because the tourists, especially our tourists from Greater Bay Area, want to come down and see how Hong Kong people live.
Chan: Michael, we only have like 20 seconds left.
Denmark: Oh.
Chan: Tell the viewers are there any more big events coming through to Hong Kong that we can sort of anticipate the Harbourfront will be as vibrant as the Cirque?
Denmark: From my perspective, we are working with Cirque to try and do a show every other year, a new show every other year, bringing back to Hong Kong and making Hong Kong the first place in Asia where these shows come. I am off to Sydney on Friday to see the Michael Jackson Musical, which I'd like to bring to Hong Kong in the next couple of years. And also I am looking at trying to get Hamilton and various other musical theatre projects. I am also looking at Concours of Elegance, classic car show. And we are about to announce that the Carnival will be coming back this year, as it is Hong Kong's favorite winter tradition. And we feel very proud to have been doing that for over 10 years.
Chan: Right. Thank you, Michael, for sharing your vision and what you have done for Hong Kong. And on behalf of the Hong Kong people, we have to thank you very much.
Denmark: Thank you.
Chan: So, our Harbourfront offers a truly iconic setting for world-class productions like the Kooza, and will continue to play a vital role in reinforcing Hong Kong's growing momentum as a premier global stage for mega events.
Until next time, I am Eugene Chan, and thank you for watching Straight Talk.