Global Biz Travel Spending to Reach a Record This Year
by Barbara Peterson /Orlando – China may be hitting some economic turbulence recently, but the country is still the driving force behind a healthy growth in business travel spending worldwide, according to a study by the Global Business Travel Association Foundation (GBTA).
Released at the GBTA’s annual convention here, which drew 7,000 delegates, the research showed that global business travel spending overall will reach a record $1.25 trillion this year, a 6.5% rise over 2014.
Next year should be a banner year, with just under a 7% increase forecast. Growth will remain strong through 2019, with year-over-year increases of 6% in 2017, 6.4 % in 2018 and 5.8% in 2019.
The role of China, which is sending visitors to the U.S. in record numbers, was a hot topic at the convention.
Michael McCormick, GBTA executive director, said, “China will pull away as the global leader in business travel over the next five years.”
While India is also a business travel success story, the subcontinent is “where China was 15 years ago,” according to McCormick.
Nonetheless, India is still poised for “breakout growth,” with $26 billion in business travel spending, last year -- a figure that will nearly double to $45 billion by the end of the decade. By 2030, India will likely be a “top-five market” in business travel spending, the GBTA survey said.
In other highlights, the research showed:
- Travelers in North America spent $318 billion on business travel in 2014, with 90% coming from the U.S.
- Business travel spending in Asia Pacific –still the biggest market overall -- totaled $459 billion in 2014.
- Travelers in Western Europe spent $271 billion on business travel in 2014.
- Latin American business travel totaled $52 billion in 2014, led by Brazil, which totaled $32 billion.
- The Middle East, and Africa, accounted for $77 billion in business travel spending in 2014 combined.