Hong Kong has actually been called the most pricey area in Asia for organization tourists– for the 2nd year in a row, according to a brand-new report.
ECA International’s newest Daily Rates research study ranked nations based upon expenses for brief journey costs: four-star hotel spaces, meals, laundry, alcoholic and sodas, journeys by taxi and incidental expenses.
The research study intends to assist companies prepare for the expense of organization journeys and short-term tasks, the information business stated.
A service journey now costs approximately $520 a day in Hong Kong, which is likewise ranked the 16 th most pricey area for organization travel worldwide.
Most pricey places for organization travel in Asia
| Destination | Daily expenses |
|---|---|
| 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’s in spite of low need from organization tourists, as Hong Kong carefully followed mainland China’s hard no-Covid policy. It was just in late 2022 that it started to unwind a few of its limitations.
“Hotel expenses continue to comprise a bulk of the total expense of organization travel, and in spite of lower tenancy levels in 2022, marketed space rates [in Hong Kong] did not fall considerably,” Lee Quane, ECA International’s local director for Asia, informed CNBC.
“This may have been due to demand from local residents, while hotel properties may also have needed to maintain their room rates to cover additional costs associated with maintaining services during the Covid-19 pandemic.”
The report is based upon info gathered in 2022, from 457 places in over 190 nations, stated ECA International.
Singapore beats Tokyo
Singapore went up one area in ECA International’s rankings, surpassing Tokyo to end up being the second-most pricey city in Asia to go to for organization.
It’s likewise ranked 19 th worldwide.
A service journey to Singapore now costs approximately $515 each day– $34 more pricey than the year prior to, stated ECAInternational
It associated increasing expenses in Singapore to its “early removal of travel restrictions” compared to other places in Asia, which stimulated an increase in need for travel to the city.
“The resulting increase in demand contributed to rises in hotel accommodation costs, while costs associated with other daily essentials … also increased at a faster rate than other locations in the region,” Quane stated.
Tokyo, which dropped from second- to third-most pricey city in Asia, likewise experienced a 5% increase in everyday expenses for organization tourists in regional currency terms.
“[However,] they were balanced out by the yen’s devaluation versus the United States dollar, causing the decrease of numerous cities throughout Japan in this year’s rankings,” Quane stated.
“With typical everyday expenses of $424 each day [in Tokyo], organization travel to the city is now nearly 20% more affordable than first-placed Hong Kong.”
Inflation and currency devaluation
Inflation in numerous places throughout Asia has actually added to considerable boosts in organization travel expenses in regional currency terms, stated ECAInternational
Sri Lanka, Laos and Pakistan saw the biggest boost in costs for tourists, the report discovered.
For example, organization travel costs in Colombo, Sri Lanka were 75% greater in regional currency terms than a year prior to, according to the report.
“This primarily stemmed from high inflation and currency depreciation, since some costs associated with business travel … are typically incurred in US dollars by foreign business travelers here.”
But not all Asian locations experienced the very same rise in travel expenses.
Popular traveler locations, for instance, saw “relatively little change” in travel costs in 2015, stated ECAInternational
“Cities like Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, all witnessed small rates of growth in local currency terms in 2022, ranging between 1% and 3%,” Quane stated.
That’s since lower need in those locations– compared to pre-pandemic levels– have actually reduced hotel rates.
“Even a tourist hub like Bangkok, which typically receives many business travelers, only saw a moderate 4% increase in business travel costs,” Quane included.
Singapore, on the other hand, saw a 10% increase in everyday expenses of organization travel in regional currency terms.
World’s most pricey location
For yet another year, New York got the suspicious honor of being the most pricey location worldwide for organization tourists.
The typical everyday expense of a service journey in New York is now $796, according to the report.
Most pricey places for organization travel worldwide
| Destination | Daily expenses |
|---|---|
| New York, U.S. | $796 |
| Geneva, Switzerland | $700 |
| Washington DC, U.S. | $658 |
| Zurich, Switzerland | $641 |
| San Francisco, U.S. | $609 |
| Tel Aviv, Israel | $595 |
| Los Angeles, U.S. | $584 |
| London, U.K. | $583 |
| Luanda, Angola | $564 |
| Paris, France | $557 |
Source: ECA International
Travel expenses have “rebounded strongly” in New York over the previous year, thanks to a “post-pandemic surge” in need for organization travel and tourist, statedQuane
Along with “inflation-driven price hikes on goods” frequently taken in by organization tourists, travel expenses grew by a plain 8%, he included.
Other cities in the U.S. likewise controlled the international top 10 list, such as Washington D.C., San Francisco and LosAngeles
Three European locations made the list, with Switzerland staying house to the area’s 2 most pricey cities for organization travel.
