Held from August 24-26, 2022, more than 70 exhibitors and thousands of attendees from around the region gathered at Marina Bay Sands in person for the Global Gaming Expo (G2E) Asia.
Business travel is back, but headwinds push full recovery into 2025 and 2026: GBTA
The global business travel industry is on its way toward full recovery to 2019 pre-pandemic spending levels of US$1.4 trillion, but recovery has hit some headwinds.
Just as many Covid-related recovery conditions have improved, many macroeconomic conditions deteriorated rapidly in early 2022. These include persistent inflation, high energy prices, severe supply chain challenges and labour shortages, a significant economic slowdown and lockdowns in China, and major regional impacts due to the war in Ukraine, as well as emerging sustainability considerations.
These new developments are impacting the timing, trajectory and pace of business travel’s recovery, both globally and by region, pushing the forecast for full recovery into 2026 instead of 2024 as previously forecasted.
This is a central finding from the latest 2022 GBTA Business Travel Index Outlook – Annual Global Report and Forecast published by GBTA and Mastercard, unveiled at the 2022 GBTA Convention.
The GBTA BTI is an annual exhaustive study of business travel spending and growth covering 73 countries and 44 industries. Now in its 14th edition, this latest report outlines the top-level outlook for global business travel 2022 to 2026.
The 2022 BTI also reveals insights from GBTA’s recent surveys of global finance executives and business travellers. Additionally, it explores new and transformative factors in global business travel in the areas of sustainability, workforce dynamics (including remote work and blended travel or “bleisure”), and technology adoption.
Highlights from the latest BTI Outlook include:
Total spending on global business travel reached US$697 billion in 2021, 5.5% above the pandemic-era low of 2020. Last year was nearly as challenging as 2020 for the global business travel industry, as it sought to carve out a “normal following” the Covid-19 pandemic. The industry gained back roughly US$36 billion of the US$770 billion lost in 2020.
Recovery was short-circuited by the Omicron variant and spike in global Covid cases in late 2021 and early 2022. As case numbers began to retreat, business travel surged. Global business travel spending in 2022 is expected to advance 34% over 2021 levels to US$933 billion, recovering to 65% of pre-pandemic levels.
Recovery in 2022 was dependent upon and has been largely driven by improvement in the four factors of global business travel recovery – the global vaccination effort, national travel policies, business traveller sentiment, and travel management policy – where conditions have improved significantly in the last six months.
Deteriorating economic conditions and shifting secular trends in 2022, however, have slowed global recovery. Hence, global business travel will almost reach pre-pandemic levels in 2025, reaching US$1.4 trillion.
Global spending is not expected to make it fully back to the US$1.4 trillion dollar mark until mid-2026, when it is forecast to reach US$1.5 trillion dollars. This adds an estimated 18 months to the industry’s recovery than was forecast in the previous GBTA Business Travel Index released in November 2021.
The divergent recovery in global business travel continues
In all, global business travel spending is expected to gain 33.8% in 2022, however, differences are anticipated across the world’s top business travel markets. The timing and pace of the recovery will continue to vary significantly from one region of the world to the next, as evidenced in 2021.
North America led the recovery in 2021 – driven largely by rapidly returning domestic travel. Western Europe was the one region to witness spending declines last year as Covid-19 impacted its domestic and regional business travel market. Both regions are expected to experience the sharpest recoveries with compound annual growth increases of 23.4% (to US$363.7 billion) and 16.9% (to US$323.9 billion), respectively by 2026.
Business travel spending in Latin America grew modestly in 2021 as the vaccination effort got off to a slower start. While there may be challenges in this region over the next few years, 55% growth in spend in Latin America is forecast for this year as business travel recovers to 83% of pre-pandemic totals.
Asia-Pacific helped lead the industry in terms of recovery of spend in 2021– particularly in China. This reversed in 2022, as China’s Zero-Covid policy led to wide-scale lockdowns and other countries in the region only slowly opened up. For 2022, a solid increase of 16.5% (or US$407.1 billion) in spending is expected in APAC (held back by China at 5.6%, or US$286.9 billion), with the region recovering to 66% of pre-pandemic levels by the end of 2022.
Challenges and opportunities
In July 2022, GBTA surveyed over 400 frequent business travelers and nearly four dozen executive travel budget decision makers across four global regions. The overall sentiment is positive, but also confirms Covid concerns are taking a back seat to current macroeconomic and geopolitical issues.
- 85% of business travellers surveyed said they definitely need to travel to accomplish their business goals. Over three-fourths said they expect to travel for work more or much more in 2023 than they did in 2022.
- 84% of senior global corporate finance professionals voiced confidence their travel spending would somewhat or significantly increase in 2023 compared to 2022.
- 73% of business travellers and 38 of 44 senior global financial executives agree inflation/rising prices will impact travel volumes.
- 69% of business travellers and 33 of 44 global financial executives are concerned a possible recession will impact travel.
- 68% of business travellers and 36 of 44 financial executives expect Covid infection rates and variants to have an impact on their travel.
GBTA members can download a full copy of the BTI Outlook on the GBTA members-only hub. The report was conducted in partnership with Rockport Analytics, a research and analytical consulting firm.
Wellington backs biotech with launch of new Life Sciences summit
Wellington has been named host of the event in a multi-year contract between signatories BioTechNZ, WellingtonNZ, and Business Events Wellington, and supported by conference organiser Brightstar and Tourism New Zealand’s business events team.
The first conference will take place March 22-23, 2023 at Shed 6, a waterfront venue. From 2024 onwards, the conference will be based at Wellington’s new convention centre, Tākina, with the aim of growing the event year on year to attract wider domestic and international audiences.
“Our objective is to bring New Zealand’s biotechnology and Life Sciences industries together across the sectors, including agricultural, environmental, industrial and human health. Having this breadth of participants highlights New Zealand’s capability, and promotes research and commercial opportunities to solve the biggest challenges on the planet,” BioTechNZ executive director Zahra Champion says.
New Zealand currently ranks fourth in the world for innovation potential in biotech, with 211 companies and NZ$2.7 billion in revenue. Globally, biotechnology is expected to be worth NZ$1.1 trillion by 2025.
“Biotech is an increasingly important industry in New Zealand for addressing our pressing environmental health, climate, and food challenges. To date, there hasn’t been an event that draws together business, academia, government, and investors across this sector in Aotearoa. The innovation and commercial potential for this sector is immense, and this event will serve as a platform for growth,” WellingtonNZ general manager of Business & Innovation Rebekah Campbell says.
Wellington’s the home of Callaghan Innovation’s Gracefield Innovation Quarter, which has been earmarked for a new Biotech Hub; The Malaghan Institute of Medical Research, New Zealand’s world-leading independent biomedical research institute; and some of New Zealand’s top Life Sciences research centres, including Scion, NIWA, AgResearch, GNS, HortResearch and Victoria University.
The capital city also offers connection and collaboration opportunities with relevant government organisations, including Ministry for Business, Innovation & Employment, The Ministry of Health, Callaghan Innovation (New Zealand’s innovation agency), New Zealand Trade and Enterprise and the Ministry for Primary Industries, alongside a wealth of companies that support the sector such as intellectual property firms, venture capital, consumables, banks, and insurance companies.
Hilton Tokyo teams up with Vega, unveils broadcast studio
International hotel chain Hilton and Japan-based technology company Vega have teamed up to create a high-tech virtual production studio and LED wall designed to support business events in Tokyo.
Located at Hilton Tokyo’s hotel in Shinjuku and supported by on-site staff from Vega, the installations can be used in addition to other meeting spaces in the hotel or in a standalone capacity, for livestreaming and broadcasting, creating pre-recorded video, and attending meetings remotely.
Content from the studio can be streamed simultaneously to the LED wall in the hotel’s ballroom, making the set-up suitable for hybrid and in-person events that require breakout spaces such as panel discussions or workshops.
The studio is set up with the latest equipment to facilitate new media content creation including ultra-high definition audio-visual recordings. It features a greenscreen with an extensive range of cameras, microphones, mixers and lighting and has multi-site linkup capabilities.
The support team can offer pre- and post-production such as the preparation of video, slides or other backgrounds for the LED wall before business event teams arrive, thereby easing the burden on event organizers and facilitating the smooth and effective running of events.
Mandarin Oriental, Singapore hires director of F&B
Mandarin Oriental, Singapore has appointed Marcel Li as director of F&B.
In his new capacity, he will be responsible for overseeing the hotel’s restaurants, bar, and lounge, as well as the banquet facilities.
Li has over a decade of experience in the luxury hospitality industry and having worked in Mandarin Oriental properties across various destinations including Kuala Lumpur, Shanghai and Boston.
No stranger to Mandarin Oriental, Singapore, Li previously managed the banquet team as assistant banquet operations Manager before taking on the role as restaurant manager of the hotel’s all-day dining restaurant, Melt Café.
Masks no longer a must in Singapore; attendees free to decide on usage
Mask-wearing at events in Singapore will be optional from August 29, as the city-state progresses further with its endemic Covid-19 transition.
While event organisers welcome the easing of masking regulations, they told TTGmice that they would allow their delegates to decide on personal mask usage.
Alison Gilmore, portfolio director for ILTM Worldwide with RX Global, said the upcoming ILTM Asia Pacific at Marina Bay Sands would give attendees the freedom of choice concerning mask wearing.
The event will be held from September 1 to 5, welcoming luxury travel and tourism specialists from all over the world. While core business activities will be conducted within exhibition halls at Marina Bay Sands, ILTM Asia Pacific will also feature social functions at hotel venues.
International Built Environment Week (IBEW) as well as the co-located trade exhibition, Built Environment Xpo (BEX) Asia, which will open in the same week, will make mask wearing optional for its attendees.
However, Yip Je Choong, managing director, RX Singapore, said “attendees should continue to practice high level of personal hygiene for their own personal health and safety”.
For off-site tours scheduled on September 5, Yip said masking requirement would be determined by hosts.
All events are open only to fully vaccinated attendees, even as Singapore eases restrictions on non-fully-vaccinated individuals. From August 29, non-fully vaccinated long-term pass holders and short-term visitors aged 13 and above will no longer need to apply for entry approval when entering Singapore. They are only required to present a negative pre-departure test within 48 hours.
When asked how the relaxed masking policy would impact Singapore’s appeal for business events, Yip said: “We welcome the move as it strengthens Singapore as the preferred destination for MICE events, paving the way for more large-scale and world-class events to be held in the city.”
Gilmore agrees that the “latest news will add further value to any event experience” in the destination.
South Pole lights the way to climate action for travel and tourism firms
Mounting importance placed on responsible climate actions by governments and intensifying consumer expectations of sustainable corporate behaviour have led more companies to take their climate strategy more seriously, observes a climate strategy specialist.
Brayden Lai, senior business development manager at South Pole, told TTG Asia that there are many studies supporting the rising trend in consumption intention being shaped by sustainability concerns.
Lai pointed to a recent blog by South Pole, which stated that 60 per cent of Asian consumers are looking at sustainability as part of their purchasing decision, and are willing to pay to offset their emissions.
2021 saw a 29 per cent increase in the number of companies in the Asia-Pacific region reporting through CDP – an international non-profit organisation that runs a global disclosure system for investors, companies, cities, states and regions to manage their environmental impacts – compared to 2020, and a more than five-fold growth from fewer than 700 companies in 2016. One-third (32 per cent) were first-time responders, demonstrating a growing momentum among businesses towards embedding transparent environmental disclosure in their operations.
The report shows that climate action has risen to the C-suite level, with almost all respondents (98 per cent) having management-level oversight for climate-related issues. Three-quarters (76 per cent) of companies reported having a process for identifying, assessing and responding to climate-related risks and opportunities.
“Even here, at Digital Travel Summit APAC 2022, we are hearing so many conversations around sustainability and responsible tourism,” said Lai.
Lai was a speaker at the event’s An Action Plan for Sustainability panel on August 24, where he and fellow industry colleagues discussed how travel and tourism companies could tap into the new traveller consciousness around sustainable tourism.
He said: “Many governments have announced their own net zero targets, and more and more consumers are aware that their individual actions can help mitigate climate risks in the future. So, climate action is huge and very important.
“Companies now regard sustainability efforts as a way to engage consumers who are highly aware of environmental issues. Many are starting to disclose their carbon emissions and environment impact. And so, South Pole is looking to help more companies do this.”
Currently, South Pole’s website lists many major global firms across industries among its clients – such as Bentley, Nestle, Tetra Pak and eBay.
Within the travel and tourism industry, South Pole supports Hilton, FCM Travel Solutions and Contiki.
With Hilton, South Pole helps to facilitate carbon-neutral meetings at the group’s hotels. Hilton calculates emissions from onsite meetings and events hosted by its clients, and takes part in South Pole’s offsetting projects.
With FCM Travel Solutions, South Pole provides clients of the corporate travel agency with insights into their carbon emissions and facilitates carbon-offsetting through its projects.
Lai told TTG Asia that there is a “huge interest in this because business travel contributes to Scope 3 emissions, which is more challenging for companies to track”.
In Greenhouse Gas accounting, Scope 1 emissions are direct from an organisation’s operations, such as the use of the company’s vehicles; Scope 2 refers to energy consumption by the organisation; Scope 3 are indirect emissions, generated by the organisation’s suppliers and employers in their course of related work.
With Contiki, South Pole provides travellers with a view of the carbon footprint arising from the tours they choose, and to offset that through emission reduction projects.
While most of its current travel and tourism industry clients are large, global firms, Lai said there is keen interest among the local and regional players too.
“These are the companies that we are actively engaging now. We are participating in travel trade events to build our connections and to raise awareness of what South Pole can do for them,” Lai remarked.
When asked what a travel and tourism company could do should they want to get started on the responsible climate journey, Lai said they could begin by helping their customers understand their carbon footprint and make better choices, and by providing their customers with options to offset unavoidable emissions.
“While awareness of climate action is rising, there is still a lot of room for improvement, especially in education to facilitate understanding about impact. Which is what South Pole is through the education consumers, businesses and organisations through blogs, workshops and speaking opportunities at events,” he added.
Japan confirms end of pre-arrival tests from September 7
Japanese prime minister Fumio Kishida has confirmed the country’s move to cease pre-arrival Covid tests for vaccinated travellers from September 7.
Travellers from then will only be required to show proof of having received three doses of an approved Covid-19 vaccine.
According to news reports, Kishida acknowledged that the pre-arrival test has been an inconvenience for travellers, “especially those traveling abroad from Japan”.
Travel agencies have been urging the government to ease travel restrictions, including removing pre-arrival tests, a requirement that many other countries have scrapped to facilitate international travel and the resumption of economic activities.
In making this announcement on August 24, Kishida also affirms the government’s decision to raise the daily arrival caps from the current 20,000 once airports have the necessary staff and infrastructure to accommodate the spike in arrivals. He did not specify the new daily arrival cap.
He also made no mention of Japan possibly permitting FITs soon, something earlier news reports had suggested.
VistaJet crafts bespoke full moon rituals for mid-Autumn holidays
Renowned business jet operator VistaJet is putting a fun spin on the upcoming Chinese Mid-Autumn Festival with five creative private tours that introduce travellers to full moon rituals in various parts of the world.
Designed in partnership with some of the world’s leading hotels and tour operators, the itineraries cover China, Malaysia, Japan, Greece, Peru and Bolivia.
In Japan, for example, the full moon getaway will be a 10-day voyage featuring kaiseki meals (traditional multi-course dinner) at every step, sake tasting with geishas in Kyoto, interaction with a renowned Japanese calligraphy artist, a private full moon appreciation ceremony in a temple with never-before-seen dance and taiko performance, and more.
For VistaJet’s Inca adventure, travellers will explore the lost city of the Incas over three weeks, calling at key destinations such as La Paz, Tiwanaku, Lake Titicaca, Sacred Valley and Lima. Flying over the Sacred Valley of the Incas in a hot air balloon, diving into Lake Titicaca, accessing secretive historical places, and sharing an extraordinary display of Chinese lanterns in Machu Pichu under the full moon are all part of the experience.
These tours are the latest additions to VistaJet’s Private World collection, which are primarily aimed at high-end leisure travellers as well as corporate incentive travel groups.
According to Amy Yang, director of marketing communications & partnerships in Asia for VistaJet, the company has been working with a broad range of hotels, high-end tour operators and luxury lifestyle specialists, such as yacht and luxury car manufacturers, private estates and wineries, to create unique travel experiences for its clients.
While most of VistaJet customers are travellers on corporate assignments, some continue to utilise the business jet operator for leisure purposes.
Yang said: “Travel today is all about providing unique and extraordinary experiences. For some of the more intriguing destinations, the only way to get there efficiently is by business jet. Our role is to help people to visit these places time-efficiently and in comfort, and create once-in-a-lifetime adventures for our clients across the globe.”
Besides Private World, VistaJet’s core business in private air charters has seen strong pick up. The company employs a subscription model where clients pay for a bespoke set of flight hours to be utilised anytime and for any destination. Subscription volumes are up 43 per cent year-on-year in 1H2022, and Ang expects numbers to continue climbing for the second half of the year.
She told TTG Asia: “Prior to the pandemic, McKinsey had a report that said only 10 per cent of people who could afford to fly on business jets, were doing so. That meant 90 per cent of the potential market was missing. Then, Covid happened and those who were part of the 90 per cent started to re-evaluate how they travelled.
“Covid changed peoples’ mindset. Rather than just think about the extra money involved in flying privately, they thought about the advantages of (doing so). It was safety and security that drove people to business aviation.”
She explained that customers were sold by the ability to “only fly with people (they) have vetted”, go through fewer touchpoints compared to flying commercially, and avoid crowds typically seen in a busy commercial airport.
“The other issue with commercial aviation is the airlines have reduced their route network, so many of routes…no longer exist commercially or there is only one flight a day. Also, not every commercial aircraft has a first-class cabin,” she added.
Centra by Centara Hotel Bangkok Phra Nakhon appoints GM
Centara Hotels & Resorts has selected Metta Boonyaritipong as opening general manager for Centra by Centara Hotel Bangkok Phra Nakhon, a new hotel set to open this October.
The seasoned hospitality professional first started in southern Thailand as personal assistant to the group general manager for Centara resorts in Suratthani. She steadily rose through the ranks in Centara Koh Chang Tropicana Resort before moving to Chonburi to look after two hotels – Centara Pattaya Hotel and Centara Nova Hotel & Spa – ending as hotel manager for both properties.
Most recently, Metta was general manager at Centara Sonrisa Residences & Suites Sriracha, a post she has held since July 2020.
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G2E Asia 2022, Special Edition: Singapore featured content on the latest market trends, innovative products, and regulatory requirements and networking with technology specialists, investors, regulators, and top leaders in the field.
On-site highlights included the new Smart IR and Innovation Zone; Esports Connect Asia Regulatory Workshop; Future IR Tech Talk Forum; as well as a conference programme led by industry leaders and experts.