AMEX expects China to lead business travel revival
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29 October 2009, Shanghai - American Express Business Travel announced today the findings of two surveys which offered separate yet similar predictions on the health and future of business travel heading into 2010. The company surveyed its Global Business Partnership (GBP) clients, its largest global clients, as well as 180 client organizations based across Shanghai, Beijing, and Guangzhou in China through its annual China Business Travel Survey (The Barometer). The findings indicate that clients expect China will lead business travel recovery. Further, investment by global companies and local companies in China should increase over the next 12 months. The results of the company’s GBP survey and Barometer were revealed during the fifth annual American Express China Business Travel Forum (CBTF) held in Shanghai this week.
“Economic conditions over the past year have undoubtedly impacted the travel and entertainment industry on a global scale, however increase in demand will help to drive business and encourage investments, particularly in China,” said Charles Petruccelli, president American Express Global Travel Services. “As we look ahead to next year, we believe travel spend will play a crucial role in fueling recovery not only China, but on a broader scale as countries begin to emerge from the recessionary environment. Businesses that will be best placed to take advantage of business opportunities in China, the U.S., or anywhere will strike the right balance between supporting necessary business-generating travel with applying smarter controls that don’t deplete the bottom line.
The GBP survey reported the findings of 20 percent of American Express Business Travel’s largest corporate clients, representing more than $1B in air volume. Sixty-eight percent of respondents anticipate that China’s economic prospects would be better than those of the United States, followed by India. Eighty-nine percent of companies surveyed expect their companies to invest in China over the next twelve months while 79 percent say they will invest in India over the next year. A further, 46 percent stated that China would be a top priority for international expansion in the short term.
The Barometer reported that respondents expect China as being the first country to emerge from the current economic cycle, with 72 percent of firms expecting to invest in China over the next twelve months. Interestingly, 60 percent of Chinese organizations surveyed have already starting to hire staff or intend to finish hiring additional staff by the fourth quarter of 2009.
Additional Findings of the GBP Survey
Most global companies believe the worst of the economic crisis is over with 79 percent of executives predicting a modest economic expansion over the next 12 months. However, this does not mean spending will reflect this attitude:
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