China is forecasted to experience double-digit increases in business travel spending this year and next, according to GBTA’s BTI Outlook – China report, a semi-annual analysis on China’s business travel market.

GBTA slightly downgraded its forecast for the country’s business travel market from its outlook published in the second half of 2014 due to predictions for slower economic growth in China coupled with uncertainty in the global economy.

While total spending on Chinese-originated business travel grew an estimated 16.6 per cent in 2014, GBTA predicts it will continue to grow 14.2 per cent this year, down from its previous projection of 18 per cent, and will grow another 12 per cent in 2016. At this rate, China is slated to overtake the United States in spending by 2017.

“There is simply no other market to compare China to as their economic engine continues to move forward at a phenomenal pace producing double-digit business travel spending growth,” said Michael W. McCormick, executive director and COO, GBTA. “Whether China becomes the world’s largest business travel market at the end of 2016 or the beginning of 2017 does not matter — what matters is that economic policies being set are showing signs of having a long-term positive impact on the economy, which points to a healthy business travel industry for years to come.”

With such strong growth in leisure and business travel demand, hoteliers significantly expanded their presence across the country over the last decade, according to the report. Demand growth outpaced supply growth in every class of hotel, with luxury and upper upscale hotels typically favored by business travellers leading the trend.

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