Chinese business travel market tops the United States
by Welcome Chinese
China Market China News
Asia Pacific business china travel Welcome Chinese
Beijing’s business travel market accounted for $291.2bn in 2015, compared with $290.2bn in the United States. Since China’s spending for the sector is expected to jump a further 10.1% in 2016, to $320.7bn, this gap is likely to continue growing. Forecasts for the US indicate a 1.9% growth, with its business travel spending reaching $295.7bn this year.
CHINA AND THE US, TWO LONELY GIANTS - Data has been collected in the report “Business Travel Intelligence Outlook for China,” by the Global Business Travel Association (GBTA), that the Asian giant edged ahead the of the US in terms of total business travel spending at the end of 2015, by US$1 billion. Overall spending is dominated by the domestic sector, and other countries registered results that place them far behind. In fact, the upper part of the chart is completed by Germany ($64bn), Japan ($62bn) and the United Kingdom ($47bn).
BUSINESS TRAVEL AS A REAL INDICATOR OF THE ECONOMY - In an official statement, Michael W. McCormick, GBTA’s Executive Director, said that “despite a relative slowdown, China’s business travel market remains one of the fastest growing in the world. (…) China surpassing the United States in business travel spending marks a major inflection point and truly demonstrates the global nature of today’s economy.”
A CHINESE-LED GROWTH - GBTA added that it expects the Chinese GDP to rise 6.4% in 2016 and an additional 6.1% in 2017, “mainly from consumption and government infrastructure investment.” The “soft landing” of the Chinese economy, leaving behind any double-digit growth rates once and for all, is bringing a controlled moderation of growth, strictly controlled by the government. Expenditure in travel infrastructure will drive the continued growth of both leisure and business travel for the near future. It was noted that the development of new airports and high-speed railway lines continued at pace, while more than 70% of Asia Pacific’s hotel construction pipeline can be attributed to China.