The Middle East region experienced a 112 per cent recovery in business travel spending compared to pre-pandemic levels, making it the strongest rebound among global markets, according to the 2023 Business Travel Index (BTI) outlook from the Global Business Travel Association (GBTA).
Business travel expenditure in the Middle East saw an estimated 11.2 per cent growth last year, trailing behind the global growth rate of 32.1 per cent. Nevertheless, the region surpassed its pre-Covid spending levels, achieving this milestone a year ahead of certain markets such as Western Europe, which is expected to recover fully in 2024. GBTA’s BTI only takes into account outbound spend only.
Speaking to TTGmice on the sidelines of ATM Dubai, Catherine Logan, GBTA’s regional senior vice president EMEA & APAC, said business travel spend in the Middle East reached US$17 billion last year.
“Qatar, Israel, and Saudi Arabia have recovered the most in terms of business travel in 2023. Saudi Arabia’s business travel is expected to reach 127 per cent of the pre-Covid level by the end of 2024, making it sixth best-performing market in the world throughout the pandemic and recovery,” said Logan.
The UAE’s business travel spend represents 14.5 per cent of the Middle East’s total, reaching US$2.47 billion last year. After fully recovering to its pre-Covid spend level last year, business travel spend in the UAE is expected to grow at a modest 4.9 per cent rate this year.
Israel’s business travel spend reached US$4.4 billion last year. While Israel Is the largest business travel market in the Middle East, the BTI model does not account for the war in Gaza. Meanwhile, Saudi Arabia’s 2023 business travel spend was reported to be US$3.1 billion.
The industry verticals forecasted to grow in the Middle East in terms of business travel include the construction, financial and insurance, real estate, public administration, accommodation/food service and healthcare sectors. This forecast period is through 2027.
“The business travel in the Asia Pacific region didn’t recover to pre-pandemic levels in 2023. The wider Asian business travel market was impacted by the fact that China’s borders were closed. We expect business travel in APAC to reach pre-pandemic growth in 2024,” added Logan.
