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Business Travel Will Fall Throughout Europe in 2012

According to the latest forecast by GBTA, hotels in all major locations of Europe will see their revenues from business travel fall. This data has been published according to the analysis of the five most important markets for business travel in Europe – the UK, Germany, France, Spain and Italy. The hotels located in these countries get as much as 70% of all business travels. Therefore, business tourism spending in these countries can be called the barometer of the state of business tourism in Europe.

Even though GDP of such countries as Germany, the UK and France is expected to grow in 2012, the increase will estimate approximately 1%. Italy and Spain are in recession and are unlikely to recover until 2014. This slows down business processes, and, therefore, casts a shadow on the number of business travellers who stay in hotels of Europe.

The expected fall of business travel spending across Europe estimates 2.2% in 2012. The total sum of expenditures is expected to fall to US$177 billion. Despite negative forecasts for this year experts assume 2013 to be more optimistic and expenditures are expected to add 1.4%.

The map of business travel expenditures is not homogenous across Europe. For instance, the expenditures of business travellers who come to Germany are expected to increase by 1.6% to US$50.8 billion. The trend will continue in 2013, and the expected growth of spending will add 3.3% more. Hotels in the UK will see their revenues from business travellers flat at the level of US$40.2 billion. There are also “outsiders”. French hotels will see their revenues from business travellers fall by 2.2% to US$35 billion. The expenditures of business travellers in Italy will fall by 6.9% to US$32.9, and business travel of Spain will suffer the most – minus 7.8% to US$17.9 billion. Business travel of Spain and Italy is not expected to recover in 2013 either.

01.10.2012

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