BENGALURU • The global business travel sector is expected to take a revenue hit of about US$820 billion (S$1.14 trillion), with China accounting for nearly half of the losses, as corporates curb travel plans in the wake of the coronavirus epidemic, an industry body said on Tuesday.
Business travel to Asia has been the worst hit, with at least three out of four companies reporting they have cancelled or suspended all or most business trips to China, Hong Kong, Taiwan and other Asia-Pacific countries, according to a survey by Global Business Travel Association (GBTA).
The industry group’s latest estimate is sharply above its February forecast of a US$560 billion hit.
The fast-spreading virus, which originated in the central Chinese city of Wuhan, has killed more than 4,000 people, mostly in China, while disrupting businesses globally.
“Coronavirus is significantly impacting the business travel industry’s bottom line,” GBTA chief operating officer Scott Solombrino said in a statement.
“The impact to the business travel industry – and to the broader economy – cannot be underestimated.”
China, which has seen a 95 per cent drop in business travel since the outbreak, is expected to lose US$404.1 billion (S$561 billion) in revenue from corporate travel, followed by a US$190.5 billion hit for Europe.
Airline and hotel industries, which typically are the biggest beneficiaries of corporate spending, have taken a major hit to their revenues as the virus continues to spread, the industry group said.
Drop in China’s business travel since the coronavirus outbreak.
Expected loss in China’s corporate travel revenue due to the outbreak.