News for the Hospitality Executive |
Alexandria, VA (February, 2012) – If the European debt crisis grows significantly worse it would wreak havoc on U.S. business travel, according to new research from the Global Business Travel Association Foundation (GBTA). According to a new report, U.S. Business Travel Outlook: European Debt Crisis Scenario, a severe crisis could result in a 9% decline in trips and 16% drop in spending – nearly $88 billion.
Given the critical role of business travel in facilitating economic growth, the current slow U.S. recovery could be severely hampered if the European debt crisis is not resolved. International outbound travel, which has played an outsized part in the revival of business travel since the recession, would be crushed by further deterioration in the Eurozone.
European Debt Crisis: From the Current Situation to the Potentially Severe
The research identified three different scenarios for the European Debt Crisis:
“This data serves as a wakeup call to the entire industry as we watch European policy makers work to contain the debt crisis. While these problems are happening abroad, they most certainly can have an effect at home,” said Michael W. McCormick, executive director and COO, GBTA. “We’ve seen a resurgence in business travel investment, meaning slow but strong economic recovery for the U.S. However, in a severe situation where the Eurozone may even break apart, business travel would drop dramatically, severely impeding economic growth overall.”
The research was conducted through an analysis and econometric model used in GBTA’s Business Travel Quarterly Outlook reports which was altered or “shocked” to assume conditions of a worsening European debt crisis. Both the report U.S. Business Travel Outlook: European Debt Crisis Scenario and The Business Travel Quarterly Outlook – United States is free of charge to all GBTA Members (http://www.gbta.org/foundation/resourcelibrary). Non-members may purchase the reports through the GBTA Foundation at [email protected]. Members of the media seeking report details should contact GBTA Communications at [email protected]. About the GBTA
Foundation Collectively, GBTA’s 5,000-plus members manage over $340 billion of global business travel and meetings expenditures annually. GBTA provides its network of 17,000 business and government travel and meetings managers, as well as travel service providers, with networking events, news, education & professional development, research, and advocacy. The foundation was established in 1997 to support GBTA’s members and the industry as a whole. As the leading education and research foundation in the business travel industry, the GBTA Foundation seeks to fund initiatives to advance the business travel profession. The GBTA Foundation is a 501(c)(3) nonprofit organization. For more information, see gbta.org and gbtafoundation.org .
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Contact:
Meghan Henning +703-236-1133 [email protected] Jamie Colunga +212-446-1877 [email protected] |
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