Growth forecasts for UK corporate travel have been downgraded due to slower domestic growth and the continuing eurozone crisis.
GBTAGlobal Business Travel Association: formerly the NBTA (National Business Travel Association) and renamed in February 2011. It provides its members (business travel management professionals) with education and information has lowered its predicted growth for the UK market from its previous forecasts made three months ago.
The association had earlier predicted a 0.7 per cent rise in the value of UK business travel in 2012 from last year?s figure of $40.2 billion (?24.8 billion). But now it says that the market is likely to be flat this year.
GBTA has also downgraded its forecast for business travel growth in 2013 from 4 per cent to the new figure of 2.8 per cent.
The UK is the second biggest business travel market in Europe after Germany, which spends $50 billion per year.
?The weak European economy and the crowding out effects of the London Olympics led to business travel spending losses in both Q2 and Q3 of 2012,? said the GBTA report.
?While we expect quarterly growth from 2012 Q4 through 2013, it will be slower than we projected in the spring. Our slower projection is mainly the result of weaker economic forecasts on the continent, particularly in Spain and Italy.
?The UK maintains a high volume of trade on the European continent resulting in a high proportion of spending on international outbound business travel (35% in 2011).?
GBTA is forecasting that spending on international outbound business travel from the UK will fall 3.1 per cent during this year but domestic travel will increase by 1.6 per cent.
For next year, it is expecting international spending from the UK to rise by 3.9 per cent with domestic travel going up by an estimated 2.3 per cent.
Paul Tilstone, managing director of GBTA Europe, said that European economies had been affected by ?weaker first-half prospects in Spain, Italy, France and the UK?.
?With lingering debt challenges and continued austerity measures, the European economy will likely continue to be challenged for years to come,? he added.
?The GBTA?s autumn report therefore remains cautious, with overall business travel spend forecast to increase by 1.4 per cent in western Europe in 2013.?
Source: http://www.abtn.co.uk/node/17863
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