Business travel spend is expected to reach two-thirds of pre-pandemic levels by the end of 2022, with the Middle East and Asia-Pacific spearheading the recovery.
The findings form part of a new report from the World Travel & Tourism Council and McKinsey & Company.
The report, Adapting to Endemic Covid-19: The Outlook for Business Travel, anticipates an increase in business travel spend of 26 per cent in 2021 and a further rise of 34 per cent in 2022, following a 61 per cent collapse in 2020.
In the Middle East, business travel spend is expected to increase 49 per cent this year – stronger than leisure travel spend at 36 per cent – followed by a 32 per cent rise in 2022. Spend in Asia-Pacific is set to grow 32 per cent this year and by 41 per cent next year.
Recovery in Europe is expected to be slower, with 36 per cent growth this year and 28 per cent in 2022, while the figures for Africa are 36 per cent this year and 23 per cent next, and for the Americas 14 per cent growth this year and 35 per cent in 2022.
Julia Simpson, WTTC CEO & president, said: “Business travel is starting to pick up. We expect to see two-thirds back by the end of 2022. Business travel has been seriously hit but our research shows room for optimism with Asia-Pacific and Middle East first off the starting blocks”.
The report emphasises the continuing importance of business travel and the spend it generates for global economic growth. The WTTC says that in 2019 most major countries depended on business travel for 20 per cent of their tourism, 75 to 85 per cent of which was domestic.
It goes on to say that although business travel represented only 21.4 per cent of global travel in 2019, it was responsible for the highest spending in many destinations, making it essential for the recovery of the entire travel sector and for its many stakeholders.
Before the pandemic, it says, business travel accounted for around 70 per cent of all global revenue for high-end hotel chains while between 55 and 75 per cent of airline profits came from business travellers, who made up around 12 per cent of passengers.