Despite a moderating economy, China’s business travel markets continues to post impressive gains, predicted to reach $317.9 billion this year, an increase of 9.2 percent.
In 2017, the market will add another 8.4 percent bringing total Chinese business travel spend to $344.6 billion, according to the GBTA Foundation’s latest business travel forecast, GBTA BTI™ Outlook – China 2016 H2. In contrast, US business travel spending is expected to reach $293.1 billion in 2017, $51.5 billion less.
Domestic business travel makes up over 95 percent of spending on total business travel in China. With the slowing economic expansion, lower levels of business travel demand should help keep a lid on Chinese travel prices over the next six months.
In 2017, the report predicts air prices in China to increase by just 0.6 percent. Hotel price increases will also moderate in the face of softening demand and a continued hotel building boom. The forecast calls for a 1.6 percent increase in average daily rates in 2017.
“China accounts for nearly 25 percent of global business travel spending, up dramatically from a 5 percent share in 2000,” said Michael W. McCormick, GBTA executive director and COO. “We expect longer-term spending growth to continue to moderate until Chinese policymakers can achieve their goal of rebalancing the economy and diverting resources away from investment and towards consumption.”