Hong Kong retains spot as costliest enterprise vacation spot in Asia

Hong Kong has been named the most costly location in Asia for enterprise vacationers — for the second 12 months in a row, in line with a brand new report. 

ECA Worldwide’s newest Every day Charges analysis ranked nations based mostly on prices for brief journey bills: four-star lodge rooms, meals, laundry, alcoholic and gentle drinks, journeys by taxi and incidental prices. 

The analysis goals to assist organizations anticipate the price of enterprise journeys and short-term assignments, the information firm mentioned. 

A enterprise journey now prices a median of $520 a day in Hong Kong, which can be ranked the sixteenth costliest location for enterprise journey on the earth. 

That is regardless of low demand from enterprise vacationers, as Hong Kong intently adopted mainland China’s powerful zero-Covid coverage. It was solely in late 2022 that it started to calm down a few of its restrictions. 

“Lodge prices proceed to make up a majority of the general value of enterprise journey, and despite decrease occupancy ranges in 2022, marketed room charges [in Hong Kong] didn’t fall considerably,” Lee Quane, ECA Worldwide’s regional director for Asia, advised CNBC.

“This may increasingly have been because of demand from native residents, whereas lodge properties may additionally have wanted to keep up their room charges to cowl extra prices related to sustaining providers in the course of the Covid-19 pandemic.”

The report relies on data collected in 2022, from 457 places in over 190 nations, mentioned ECA Worldwide.

Singapore moved up one spot in ECA Worldwide’s rankings, overtaking Tokyo to change into the second-most costly metropolis in Asia to go to for enterprise.

It is also ranked nineteenth globally. 

A enterprise journey to Singapore now prices a median of $515 per day — $34 costlier than the 12 months earlier than, mentioned ECA Worldwide. 

It attributed rising prices in Singapore to its “early elimination of journey restrictions” in contrast with different places in Asia, which sparked an increase in demand for journey to the town.

“The ensuing enhance in demand contributed to rises in lodge lodging prices, whereas prices related to different each day necessities … additionally elevated at a quicker price than different places within the area,” Quane mentioned.

Tokyo, which dropped from second- to third-most costly metropolis in Asia, additionally skilled a 5% rise in each day prices for enterprise vacationers in native forex phrases.

“[However,] they have been offset by the yen’s depreciation in opposition to the US greenback, resulting in the decline of a number of cities throughout Japan on this 12 months’s rankings,” Quane mentioned. 

“With common each day prices of $424 per day [in Tokyo], enterprise journey to the town is now nearly 20% cheaper than first-placed Hong Kong.” 

Inflation in lots of places throughout Asia has contributed to important will increase in enterprise journey prices in native forex phrases, mentioned ECA Worldwide. 

Sri Lanka, Laos and Pakistan noticed the most important enhance in bills for vacationers, the report discovered. 

For instance, enterprise journey bills in Colombo, Sri Lanka have been 75% increased in native forex phrases than a 12 months earlier than, in line with the report. 

“This primarily stemmed from excessive inflation and forex depreciation, since some prices related to enterprise journey … are sometimes incurred in US {dollars} by overseas enterprise vacationers right here.” 

However not all Asian locations skilled the identical surge in journey prices.

In style vacationer locations, for instance, noticed “comparatively little change” in journey bills final 12 months, mentioned ECA Worldwide. 

“Cities like Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, all witnessed small charges of development in native forex phrases in 2022, ranging between 1% and three%,” Quane mentioned.

That is as a result of decrease demand in these locations — in contrast with pre-pandemic ranges — have suppressed lodge charges.

“Even a vacationer hub like Bangkok, which generally receives many enterprise vacationers, solely noticed a reasonable 4% enhance in enterprise journey prices,” Quane added. 

Singapore, in distinction, noticed a ten% rise in each day prices of enterprise journey in native forex phrases. 

For yet one more 12 months, New York acquired the doubtful honor of being the most costly place on the earth for enterprise vacationers.

The typical each day value of a enterprise journey in New York is now $796, in line with the report. 

Journey prices have “rebounded strongly” in New York over the previous 12 months, because of a “post-pandemic surge” in demand for enterprise journey and tourism, mentioned Quane. 

Together with “inflation-driven worth hikes on items” generally consumed by enterprise vacationers, journey prices grew by a stark 8%, he added. 

Different cities within the U.S. additionally dominated the worldwide prime 10 listing, reminiscent of Washington D.C., San Francisco and Los Angeles. 

Three European locations made the listing, with Switzerland remaining house to the area’s two costliest cities for enterprise journey.