Business travel spending in the UK is forecast to grow by 0.7% in 2012 but Spain and Italy will see steep declines.
A report by the Global Business Travel Association (GBTA) predicts recovery in North Europe and ‘continued trouble’ in the South during 2012, but higher levels of business travel spend across all of Europe in 2013.
This year, Spain and Italy are forecast to see declines of 4.1% and 5% respectively for business travel spending.
The inaugural GBTA Business Travel Index Outlook – Western Europe, sponsored by Visa Inc, also shows that business travel spending (BTS) will grow in Germany by 0.6% and decline in France by 0.6%.
However, while BTS domestically in Germany, UK and France is set to grow, the report forecasts declines in international outbound spending (IOB).
UK domestic BTS is forecast to grow by 2.7% but IOB is forecast to fall by 2.8%.
Next year will be stronger, with the UK forecast to increase overall BTS by 4%.
Michael McCormick, executive director and chief operating officer of GBTA, commented: ‘We found that economic growth across Europe will be constrained in 2012 with weakness in the first half giving way to improving prospects later in the year.
‘Increasing economic growth in Germany, France and the UK will be offset by declines in many Southern European economies.’
Paul Tilstone, GBTA Europe managing director, added: ‘Forecasts for 2013 are very positive but 2012 shows a significant disconnect between Northern and Southern economies and domestic and international business travel spend.’
To see more about the report, click here.