Hong Kong has been ranked as the most expensive business travel destination in Asia for the second yr in a row, in line with a latest report.
ECA International’s latest day by day rate survey countries ranked based on short trip costs: rooms in 4-star hotels, meals, laundry, alcoholic and non-alcoholic drinks, taxi fare and incidentals.
The study is designed to assist organizations anticipate the cost of business travel and short-term assignments, the data firm said.
Business travel currently costs a median of $520 per day in Hong Kong, which can be the sixteenth most expensive business travel destination in the world.
Most Expensive Business Travel Locations in Asia
Destination | Each day costs |
---|---|
Hong Kong | $520 |
Singapore | $515 |
Tokyo, Japan | $424 |
Shanghai China | $392 |
Seoul, South Korea | $380 |
Dhaka, Bangladesh | $376 |
Taipei, Taiwan | $372 |
Beijing, China | $371 |
Yokohama, Japan | $350 |
Hsinchu, Taiwan | $349 |
Source: ECA International
That is despite low demand from business travelers as Hong Kong strictly adhered to mainland China’s tough zero Covid-19 policy. It was only at the end of 2022 that it began to ease a few of its restrictions.
“Hotel costs still account for the majority of total business travel costs and despite lower occupancy levels in 2022, advertised room rates [in Hong Kong] hasn’t dropped significantly,” Lee Quane, ECA International’s regional director for Asia, told CNBC.
“This will likely have been driven by demand from local residents, while hotels may need to take care of room rates to cover the additional costs of maintaining services during the Covid-19 pandemic.”
The report is predicated on information collected in 2022 from 457 locations in greater than 190 countries, said ECA International.
Singapore wins over Tokyo
Singapore moved up one place in the ECA International rating, overtaking Tokyo to turn into the second most expensive city in Asia visit on business.
It also ranks nineteenth in the world.
A business trip to Singapore now costs a median of $515 a day, up $34 from a yr ago, ECA International reported.
He attributed rising costs in Singapore to “early”. lifting travel restrictions” in comparison with other locations in Asia, resulting in increased demand for travel to the city.
“The resulting increase in demand contributed to the increase in hotel accommodation costs, while costs related to other day by day necessities … were also rising faster than other locations in the region,” Quane said.
Tokyo, which dropped from second to 3rd most expensive city in Asia, also saw a 5% increase in day by day costs for business travelers in local currency.
“[However,] these were offset by the depreciation of the yen against the U.S. dollar, which led to several cities in Japan dropping in this yr’s rankings,” said Quane.
“With a median day by day cost of $424 per day [in Tokyo]a business trip to the city is now almost 20% cheaper than Hong Kong, which ranks primary.”
Inflation and currency depreciation
Based on ECA International, inflation in many places in Asia has contributed to a major increase in business travel costs in local currency.
Sri Lanka, Laos and Pakistan saw the biggest increases in travel spending, the report said.
For instance, in line with the report, business travel expenses in Colombo, Sri Lanka, were 75% higher in local currency than a yr earlier.
“This was primarily as a result of high inflation and currency depreciation, as some business travel costs … are typically paid in US dollars by foreign business travelers.”
But not all destinations in Asia experienced the same rise in travel costs.
Popular tourist destinations, for instance, saw “relatively little change” in travel spending last yr, ECA International said.
“Cities like Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, saw modest local currency growth rates in 2022, starting from 1% to three%,” Quane said.
That is because the lower demand in these locations, in comparison with pre-pandemic levels, has driven hotel prices down.
“Even a tourist hub like Bangkok, which generally hosts many business travelers, saw only a modest 4% increase in business travel costs,” Quane added.
In contrast, Singapore saw a ten% increase in day by day business travel costs in local currency.
The most expensive place in the world
For one more yr, Recent York was given the dubious honor of being the world’s most expensive destination for business travelers.
Based on the report, the average day by day cost of a business trip in Recent York City is currently $796.
The most expensive locations for business trips around the world
Destination | Each day costs |
---|---|
Recent York, United States | $796 |
Geneva, Switzerland | $700 |
Washington DC, United States | $658 |
Zurich, Switzerland | $641 |
San Francisco, United States | $609 |
Tel Aviv, Israel | $595 |
Los Angeles, United States | $584 |
London, UK | $583 |
Luanda, Angola | $564 |
Paris France | $557 |
Source: ECA International
Travel costs have “increased strongly” in Recent York over the past yr because of “post-pandemic growth” in demand for business travel and tourism, Quane said.
He added that together with “inflationary commodity price hikes” commonly consumed by business travelers, travel costs increased by 8%.
Other US cities also dominated the global top 10 list, corresponding to Washington, San Francisco and Los Angeles.
Three European destinations made the list, with Switzerland remaining home to the region’s two most expensive cities for business travel.