Business travel spending in China rose to $225 billion last year — or 23 per cent of the $1.1 trillion global spend. That’s next only to the U.S., where spending reached $274 billion, the report from the Global Business Travel Association (GBTA) said.
The pace of business travel growth in China has been remarkable. Since 2000, spending has increased by about 16 per cent each year on average, compared to a mere 1 per cent in the U.S. ”Despite stronger growth, the U.S. continues to lose compared to China, which is poised to take over as the #1 business travel market in the world by 2016,” the report said.
For decades, the Chinese economy experienced double-digit growth — an expansion that has been reflected in the country’s business travel industry.
As Beijing built the world’s second-largest economy, it also developed extensive transportation infrastructure. China now boasts top-flight transportation options, including a high-speed rail network, that make it easier for both leisure and business travelers to get around.
Yet there are some signs that the blockbuster industry growth might be slowing. China’s economy has entered a period of more moderate growth, and business travel spending will likely also take a hit.
The GBTA also expects spending restrictions that are part of government’s anti-corruption campaign to weigh on the industry. The group predicts 13% annual growth over the next five years.
“Despite slowing growth, China remains in a league of its own as far as market potential goes,” the GBTA’s report said.
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