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China tops in biz travel spending: report

China’s business travel market has overtaken the U.S. as the biggest in the world, according to the Global Business Travel Association.

China spent US$291.2 billion in 2015 compared with US$290.2 billion by the U.S., according to the Alexandria, Virginia-based association’s research arm’s new China outlook report. This year, the country is expected to increase that number by 10.1% to US$320.7 billion compared with 1.9% growth and US$295.7 billion in spending by the United States.

“China surpassing the United States in business travel spending marks a major inflection point and truly demonstrates the global nature of today’s economy,” said Michael W. McCormick, GBTA executive director and COO.

Some additional findings:

  • GBTA’s expectations for the Chinese economy are for a continuation of GDP growth moderation bringing rates of 6.4 percent and 6.1 percent for 2016 and 2017, respectively.
  • Despite the slowing Chinese economy, investment in travel infrastructure continues. A plan to open 82 airports has been underway since 2011 and hoteliers continue to increase their presence in China. Over 70 percent of the hotel construction pipeline in Asia Pacific can be attributed to China.
  • GBTA’s forecast of 9.8 percent total business travel spend growth in 2017 would mark the first year of this millennium that China’s business travel spend growth rates dropped below double digits.
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