The Global Business Travel Association (GBTA) has released its
second research report on Business Travel Spending (BTS) in Western
Europe, and forecasts a fall in BTS across major European markets in
2012, but expects markets to improve in 2013.
The semi-annual analysis of the five most critical business travel
markets in Europe, Germany, UK, France, Italy and Spain, provides a
barometer for the health of the entire European business travel
market.
The report revealed Germany, France and the UK are expected to see
positive GDP growth in 2012, although under the 1.0 per cent level and
Italy and Spain are expected to remain in recession until 2014.
Key findings:
- Overall BTS among major European markets will fall 2.2 per cent in 2012 to US$177bn before bouncing back by 1.4 per cent in 2013
- The GBTA forecasts German BTS to grow by 1.6 per cent in 2012 to $50.8bn and 3.3 per cent in 2013 to $52.5bn
- The
GBTA expects UK BTS to remain flat in 2012 ($40.2bn) before growing 2.8
per cent in 2013. International outbound travel from the UK will fall
-3.1 per cent and domestic business travel spending will grow 1.6 per
cent - BTS in France is expected to suffer a loss of -2.2 per
cent in 2012 with total spending on business travel falling to £35.7bn,
before growing 1.1 per cent in 2013. - Spain BTS will decline -7.8
per cent in 2012 before falling another 1.6 per cent in 2013, while
Italian BTS will fall -6.9 per cent and will shed another -1.2 per cent
in 2013.
“Europe has unfolded as we expected in our inaugural Spring 2012
report,” says Managing Director of GBTA Europe, Paul Tilstone. “However,
as a result of weaker first half prospects in Spain, Italy, France and
the UK, our 2012 GDP growth expectation for the
entire Euro Area has been downgraded slightly in the Fall report to
-0.4 per cent, from -0.3 per cent.
“With lingering debt challenges and continued austerity measures, the
European economy will likely continue to be challenged for years to
come. The GBTA’s fall report therefore remains cautious, with overall
business travel spend forecast to increase by 1.4
per cent in Western Europe in 2013,” Tilstone adds.
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