Organisers of a government-funded gay exhibition in Hong Kong have reported difficulty in finding a venue for their event. After four months of searching, they were forced to give up. They also allege that they have been discriminated against by property developers.

The gay advocacy group, Satsanga had originally planned to hold the 3rd Tongzhi Conference in a shopping mall at the end of February. This event was funded by the Hong Kong Home Affairs Bureau with a $50,000 grant . The conference had intended to address common public misconceptions about homosexuals, reported the South China Morning Post.

The report stated that the group had contacted major developers, SHK Properties, New World Properties, Paliburg Holdings, Wharf and Swire four months in advance to book a venue for their exhibition, which will feature posters with questions and answers about different aspects of homosexality in Hong Kong. However, all applications were turned down.

Subtle discrimination was at play in the failure to secure a venue said Albert Luk, Satsanga's spokeman.

"It is very difficult to prove on what grounds the decision was made. Most managements would just tell us the place had already been booked. But we think it is because of discrimination," he told the Post.

The group has returned its HK$50,000 grant to the Home Affairs Department. Mr Luk said failure to pull the event off might undermine its chances of securing future funding.

Both Swire Properties which owns Festival Walk and the management of Pacific Place in Admiralty deny that they had discriminated against the group. Swire's spokesperson said the proposed period was right after Lunar New Year and the company did not want to accept any application because it was not able to confirm the decoration schedule while the management of Pacific Place said that they did not accept any applications in February as it was the festival period.

SHK Properties, New World Property and Wharf were not available for comment. Paliburg Holdings refused to comment.

One of the organisers also said that he encountered difficulties with hotel managers when he tried to book a hotel ballroom. He said one manager told him that he needed to seek the final approval of the owner of the hotel while others asked to review documents from the organisation.

Late last year, an exhibition at Festival Walk shopping mall that aimed to promote Aids awareness was cancelled at the last minute because the managers of the complex objected to public displays of condoms.