Buck rising in business travel

The billion-dollar business events industry is returning to health after the economic downturn slashed spending in the sector.  

Business events visitor expenditure took an 18 per cent or $1.8 billion dive last year in the wake of the financial crisis, according to a new report by Tourism Research Australia.

The Minister Assisting on Tourism, Senator Nick Sherry, said the report shows the worst appears to be over for the sector, which was worth $9.7 billion pre-global recession.

“The business events sector is now stabilizing, down minimally by one per cent for the first six months of 2010,” Senator Sherry said. 

“At the same time, there has been a dramatic improvement in the day travel business events area, up 18 per cent for the first half of 2010.”

The recovery for international business travel to Australia has also begun to strengthen.

International business tourist numbers are up by 16 per cent for January – August 2010 on a year earlier.

Convention or conference trip visitor numbers increased even further during the period, up by 25 per cent.

Senator Sherry said the report pointed to encouraging signs for the sector as Australian business reviewed travel budgets for the coming year.

“The signs are business events travel will rally again in the coming year due to the improving global business outlook, especially from the ongoing strong growth in Asian economies,” Senator Sherry said.

The report identifies business event travellers spent on average $234 per night in 2008, compared with $163 per night for all visitors.

Full Tourism Australia Research report – Business Events: Latest Industry Performance