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Coronavirus to rob business travel sector off $820 bn: Industry body

Business travel to Asia has been the worst hit, with at least three out of every four companies reporting they have canceled or suspended all or most business trips to China

Reuters 

Travel, travelling, flights, air fares
The industry group's latest estimate is sharply above its February forecast of a $560 billion hit

The global sector is expected to take a revenue hit of about $820 billion, with China accounting for nearly half of the losses, as corporates curb travel plans in the wake of the epidemic, an industry body said on Tuesday.

to Asia has been the worst hit, with at least three out of every four companies reporting they have canceled or suspended all or most business trips to China, Hong Kong, Taiwan and other Asia-Pacific countries, according to a survey by Global Association (GBTA).

The industry group's latest estimate is sharply above its February forecast of a $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.

"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 $404.1 billion in revenue from corporate travel, followed by $190.5 billion in loss for Europe.

Airline and hotel industries, which typically are the biggest beneficiaries of corporate spending, have taken a major hit to their revenue as the virus continues to spread, the industry group said.

 

 

First Published: Wed, March 11 2020. 11:53 IST
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