BRICs No Longer a Bloc for Business Travel Growth
Continued brisk growth in China despite recent economic speed bumps. Brazil and Russia lag due to political and economic turmoil.
China and India business travel will continue to grow at double digit rates over the next two 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 percent in 2015 and 10.7 percent in 2016. China is poised to become the global leader in business travel by mid-2016, with business travel spending forecasted to increase by more than 60 percent from 2014 to 2019.
Additionally, strong momentum powers business travel growth in India, projected to be 11.1 percent in both 2015 and 2016. This is a reflection of an improving business climate under Prime Minister Narendra Modi, as well as the high levels of domestic economic activity. These findings come from GBTA’s BTI Outlook semi-annual reports on Brazil, China, India and Russia, conducted by the GBTA Foundation, the education and research arm of the Global Business Travel Association (GBTA), 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 four 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 uncertainty.”
India is the 10th largest business travel market in the world. In 2014, India had $26 billion in business travel spending, which will grow by a compound annual growth rate (CAGR) of 11.5 percent through 2019 to $45 billion. Fifteen years from now, India will likely be a top-five market in business travel spending.