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Saturday, June 2, 2012
Chinese Business Travel Spending Growing
will surpass the United
States as the world's top market for
business travel by 2015, according to a study by the Global Business Travel
Association, an international organization that manages business travel and
Chinese GDP is expected to grow by 8.2% this year and by
8.9% in 2013, and the GBTA reckons spending on business travel will rise even
faster—by 17% (to $202 billion) this year, and by 21% (to $245 billion) in
2013. With business-travel spending growing more slowing in the US, the
American market could be overtaken by the Chinese in the next few years.
Michael McCormick, the chief operating officer of the GBTA,
confirmed the reason for the rise: “We forecast significant increases in
business travel by Chinese citizens over the next two years with at least
two-thirds of the growth being real increases in trips and spending as opposed
to rising travel prices. China's
phenomenal economic growth over the last decade has been mirrored in business
travel, which is now a key contributor to, and benefactor from, the country's
McMormick said at least two-thirds of the growth in China's
corporate travel market will be real increases in trips and spending as opposed
to rising travel prices. China's
expected annual growth of around 8%-9% in GDP over the next couple of years
will be another key factor, he added.
The study found that increases in business travel spending
will be largely driven by an increase in meetings, incentives, conferences and
exhibition business trips.
The Chinese government certainly seems to be doing its bit
to encourage business travel. Under the terms of its 2011-2015 five-year plan China will
spend in the region of 1.5 trillion yuan ($237 billion) on airports, with plans
to expand 91 of its 175 current facilities and to build another 56. Combine
that with the 8,000 km of new high-speed rail track due to be laid by 2015 and
you have a country where the needs of the business traveller are being met.
has been expanding airports and building hotels to meet the rising demand,
reported Reuters. Projects include building up to 100 new airports over the
next decade and doubling the size of the country's four largest airports — Beijing, Shanghai-Pudong, Shanghai Hongqiao and Guangzhou. Many
lower-tier airports are will also be given upgrades to increase capacity.
New Airport Express Train
InterContinental Hotels Group, the parent company of hotel
chain Holiday Inn, said domestic travel in China is expected to reach 3.3
billion trips annually by 2015, with the hotel market set to grow by 5%-8% per
year by 2030. Reuters said the group is planning to operate in at least 100
Chinese cities in the next 15 to 20 years.
Spending on business travel in 2011, $bn
States 250. 2) China 182. 3) Japan 65. 4) United Kingdom
38. 5) Germany
35. 6) France
34. 7) Italy
33. 8) South Korea
30. 9) Brazil
28. 10) Canada