China and India are projected to continue to fare well, Brazil and Russia are
currently heading in a different direction.
China and India business
travel will continue to grow at double digit rates over the next 2 years, a
clear indication of the resiliency and strength of both economies.
Despite recent economic
turmoil,China business travel
spending is projected to grow at 11.2% in 2015 and 10.7% in 2016.China is poised to become the
global leader in business travel by mid-2016, with travel spending forecasted
to increase by more than 60% from 2014 to 2019.
momentum is powering business travel growth in India, projected at 11.1% in
both 2015 and 2016. This is a reflection of an improving business climate under
Prime Minister Narendra Modi, as well as high levels of domestic economic
The findings come from
GBTA’s BTI Outlook semi-annual reports, conductedby the GBTA Foundation and sponsored by Visa, Inc.
“The BRICs are no longer
a bloc when it comes to business travel,”said
Michael W. McCormick, executive director of the Global Business Travel
Association.“A decade ago, it
looked like these 4 nations would develop in lockstep, with high rates of
growth across the board. But their paths have diverged sharply as a result of
the unique political and economic situations in each country. China and India
continue to be business travel juggernauts, a reflection of the underlying
strength of both economies even in a tough global economic environment. Brazil
and Russia, on the other hand, face growing economic turbulence, turmoil and
Surging Despite Speed bumps
China’s business travel
market represents roughly 20% of global business travel spending, up from just
5.1% in 2000. A total of $262 billion was spent on business travel initiated in
China in 2014. Only the U.S. is larger at $284 billion. By mid-2016, China will
become the largest business travel market in the world.While
its growth will slow slightly, China business travel will increase by 61% over
the next 5 years, to $420 billion in 2019.
Poised for Breakout Growth
India is the 10thlargest business travel market in the
world.In 2014, India had $26 billion in business travel spending, which the
forecast says will grow by a compound annual growth rate of 11.5% through 2019
to $45 billion. 15 years from now,
India will likely be a top 5 market in business travel spending.
GBTA projects that
Indian business travel spending will grow 11.1% in both 2015 and 2016. The
near-term prospects for the Indian economy continue to improve and the business
travel market remains one of the healthiest in the world.
Outlook: Heading In A Negative Direction
GBTA expects total
business travel spending in Brazil to decline by 1.5% in 2015, a significant
downgrade from GBTA’s projection of 1.8% growth earlier this year. GBTA expects
improvement in 2016 as spending growth is poised to bounce back to 1.2% growth.
Russian business travel
growth faces serious headwinds. In total, GBTA expects business travel spending
in Russia to fall 17% in 2015 to $17.5 billion. GBTA says the decline in Russian
growth can be attributed to the collapse of oil prices, international sanctions
and overall weakness in the global economy.