It’s been predicted that in just 3 years (by 2016), China will surpass the U.S. as the leader in the business travel market. Because the country’s economy has grown, it’s more able to support an increase in business travel.
Business Travel Spending
According to the Global Business Travel Association, the country’s business travel spending was around $196 billion in 2012. In 2011, it was around $174 billion and in 2000, only $32 billion. Spending for the U.S. last year was $262 billion, however, the rate only increased 4% as opposed to China’s 13%.
Why the Increase?
Business has recently spread to many less-developed countries (like China, Brazil and India) because of their cheaper costs and ongoing growth. China has been busy doubling the size of its four largest airports – Shanghai-Pudong, Beijing, Shanghai-Hongqiao, and Guangzhou. It’s also been building new hotels in order to take on the influx of business travel. In a few years, Brazil and India may not be too far behind.
In the GBTA’s report, Welf J. Ebeling, VP of Operations for GBTA Asia, said “Although economic growth has been moderated by ongoing global uncertainty, the Chinese economy is regaining its momentum.”
Other Predictions for China
Other reports predict the country will surpass the U.S. as the largest e-commerce market by the end of this year, the largest crude oil importer by 2017 and the economic leader by 2030.