The top business travel hot spots for 2010
Trip leaders
Global business travel is tipped to recover gently this year, but some markets are expected to grow much faster, even in the continuing difficult economic climate. We profile four of the fast-track destinations for 2010.
2010 will undoubtedly be another tough year for corporate travel – but not everywhere. Although businesses based in developed nations are only expected to increase their trip numbers by small percentages (with growth accelerating in the second half of 2010), it is likely to be a different story in many emerging markets.
For the BRIC countries (Brazil, Russia, India and China), for example, and countries involved in gas and oil production, travel is likely to bounce back much faster, according to Paul Tracy, BCD Travel’s vice president, partner network – EMEA. In these markets, significant long-term growth potential is helping them shrug off the recession much faster. It is also opening up new business travel routes as trading networks in the global economy evolve.
“The percentage of the world’s top 500 companies which are from outside developed markets has grown rapidly over the last three years,” says Tracy. “It has been the case for a while that Western companies are traveling to those countries not only to source materials and create production facilities but also to sell to them as consumers in their own right. However, we are now seeing a new type of traffic flow, which is a big increase in travel between emerging markets. BRIC-based businesses are flying all over the world, and we are also seeing a lot of travel from the Gulf to Africa.”
Among the EMEA markets where above-average growth is expected for travel in 2010 are the following:
Azerbaijan
| Capital | Baku |
| Population | 8.5 million |
| Currency | Manat |
| Main exports | Oil, oil products…………………… |
| 2008 real GDP growth | 15.6% |
| GDP per capita | US$9,500 |
Economy
Azerbaijan has huge oil and gas reserves. Revenues from an oil pipeline from Baku to the Turkish Mediterranean port of Ceyhan are expected to double the country’s gross domestic product between 2006 and this year. Trade with former Soviet Union countries is declining in importance at the same time that trade with Turkey and the European Union is accelerating.
Business travel
The oil sector plays a dominant role in airline schedules and ticketing requirements, e.g., marine and rig fares. Bureaucracy, corruption and a lack of infrastructure make it a difficult market in which to operate.:
Poland
| Capital | Warsaw |
| Population | 38.1 million |
| Currency | Zloty |
| Main exports | Machinery, transport equipment, food, chemicals |
| 2008 real GDP growth | 5.3% |
| GDP per capita | US$17,800 |
Economy
Rising private consumption, increased corporate investment and additional EU funding make Poland one of the most successful transition economies among former Communist eastern European states. In spite of the turbulent global conditions affecting its key export markets, the country still managed to record GDP growth of 1.5 percent for 2009.
Business travel
Travel management conditions are very similar to the rest of Europe. Airline commission is zero or minimal and low-cost carriers have a very high market share. Perhaps the main difference is local resistance to using credit cards.:
Qatar
| Capital | Doha |
| Population | 841,000 |
| Currency | Riyal |
| Main exports | Oil, gas…………………… |
| 2008 real GDP growth | 11.8% |
| GDP per capita | US$101,000 |
Economy
Expanding production of natural gas and oil has led to Qatar’s economic boom continuing even as some other Gulf states have faltered. Oil and gas account for more than 60 percent of GDP, with proven reserves of natural gas the third-largest in the world. GDP per capita is the world’s highest.
Business
Qatar Airways has developed rapidly as a powerful hub airline for EMEA and Asia. Airline commission has disappeared and the market has become accustomed to service fees and transaction pricing.:
South Africa
| Capital | Pretoria (executive capital) |
| Population | 50.1 million |
| Currency | Rand |
| Main exports | Minerals, cars, machinery……………….. |
| 2008 real GDP growth | 3.1% |
| GDP per capita | US$10,100 |
Economy
Rising commodity prices have fuelled robust growth since 2004, thanks to South Africa’s abundance of gold, diamonds and other natural resources.
Business travel
This year’s story will be mainly about leisure rather than corporate travel. Visiting South Africa for business could prove problematic during June and July because of the FIFA World Cup, with accommodation shortages especially acute in smaller host cities. Security should always be taken into consideration, such as pre-booking reliable airport transfers.
Sources for country facts: BBC, The World Factbook
Tags: none
Email This Post
Print This Post
Related Posts
This entry was posted on Thursday, January 21st, 2010 at 9:27 am and is filed under Corporate Travel. You can follow any responses to this entry through the RSS 2.0 feed. You can leave a response, or trackback from your own site.
