The organizer of the 2009 East Asian Games said it will trim expenses to cope with the economic downturn that is expected to hurt sponsorship.

The games, to be held in December of next year, will cost about HK$240 million, excluding the cost of venue construction and renovations. The government will pay for half of it, and the organizer will need to secure the remaining funds through sponsorships, ticket revenue and souvenir sales.

Johnny Woo, chief executive officer of the Games, said that about HK$64 million has been raised through sponsors.

"The economic crisis will create challenges for us to secure sponsors," he said. "Business organizations are more willing to spend their money when the economy is good. Now, the task will be more difficult."

Woo said the company, which is expected to have 100 staff by mid-2009, can save up to HK$4 million on staff expenses. Newly recruited staff who replace outgoing employees will be paid less.

The tender price for the games services, including security, transportation, catering and accommodations, will also be reduced, Woo said.

But Woo said he is confident Hong Kong can still host a successful East Asian Games with the reduced spending.

Secretary for Home Affairs Tsang Tak-sing, visiting the games main venue in Tseung Kwan O, also expressed confidence that the games will be held effectively without further government funding.

The venue, costing HK$400 million, will be completed early next year.

Leisure and Cultural Services Department Senior Executive Officer Terrence Lau said the venue will be used to promote athletics after the games.

Architectural Services Department Senior Project Manager Frank Wong said environmentally friendly features have been incorporated into the venue design to maximize the use of natural lights and solar energy, reducing electricity consumption.

Rain water will also be collected for irrigating the plants inside the venue, which will reduce the use of drinking water.

"We also hope to raise awareness in environmental protection and renewable energy among the public," Wong said.

The venue, covering 5.9 hectares, has a capacity of 5,000 spectators and facilities for athletic training.

Apart from the venue, renovation is underway on 13 other sports grounds for the games.

Tsang said the renovations will be completed by mid-2009. About 1,000 jobs have been created.

The Hong Kong Sports Institute, used as the venue for the Olympic equestrian events, will also be renovated, creating about another 1,000 jobs.

(HK Edition 11/28/2008 page1)