Hong Kong has been named the costliest location in Asia for enterprise vacationers — for the second 12 months in a row, based on a brand new report.
ECA Worldwide’s newest Each day Charges analysis ranked nations based mostly on prices for brief journey bills: four-star lodge rooms, meals, laundry, alcoholic and tender drinks, journeys by taxi and incidental prices.
The analysis goals to assist organizations anticipate the price of enterprise journeys and short-term assignments, the info firm stated.
A enterprise journey now prices a mean of $520 a day in Hong Kong, which can be ranked the sixteenth most costly location for enterprise journey on the planet.
Most costly areas for enterprise journey in Asia
| Vacation spot | Each day prices |
|---|---|
| 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 |
Supply: ECA Worldwide
That is regardless of low demand from enterprise vacationers, as Hong Kong carefully adopted mainland China’s robust 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 will likely have been attributable to demand from native residents, whereas lodge properties can also have wanted to keep up their room charges to cowl extra prices related to sustaining companies in the course of the Covid-19 pandemic.”
The report relies on data collected in 2022, from 457 areas in over 190 nations, stated ECA Worldwide.
Singapore beats Tokyo
Singapore moved up one spot in ECA Worldwide’s rankings, overtaking Tokyo to develop 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 mean of $515 per day — $34 costlier than the 12 months earlier than, stated ECA Worldwide.
It attributed rising prices in Singapore to its “early removing of journey restrictions” in contrast with different areas in Asia, which sparked an increase in demand for journey to the town.
“The ensuing improve in demand contributed to rises in lodge lodging prices, whereas prices related to different day by day necessities … additionally elevated at a quicker fee than different areas within the area,” Quane stated.
Tokyo, which dropped from second- to third-most costly metropolis in Asia, additionally skilled a 5% rise in day by day prices for enterprise vacationers in native forex phrases.
“[However,] they have been offset by the yen’s depreciation towards the US greenback, resulting in the decline of a number of cities throughout Japan on this 12 months’s rankings,” Quane stated.
“With common day by day prices of $424 per day [in Tokyo], enterprise journey to the town is now virtually 20% cheaper than first-placed Hong Kong.”
Inflation and forex depreciation
Inflation in lots of areas throughout Asia has contributed to vital will increase in enterprise journey prices in native forex phrases, stated ECA Worldwide.
Sri Lanka, Laos and Pakistan noticed the biggest improve in bills for vacationers, the report discovered.
For instance, enterprise journey bills in Colombo, Sri Lanka have been 75% greater in native forex phrases than a 12 months earlier than, based on the report.
“This primarily stemmed from excessive inflation and forex depreciation, since some prices related to enterprise journey … are usually incurred in US {dollars} by overseas enterprise vacationers right here.”
However not all Asian locations skilled the identical surge in journey prices.
Widespread vacationer locations, for instance, noticed “comparatively little change” in journey bills final 12 months, stated ECA Worldwide.
“Cities like Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, all witnessed small charges of progress in native forex phrases in 2022, ranging between 1% and three%,” Quane stated.
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 usually receives many enterprise vacationers, solely noticed a reasonable 4% improve in enterprise journey prices,” Quane added.
Singapore, in distinction, noticed a ten% rise in day by day prices of enterprise journey in native forex phrases.
World’s most costly place
For one more 12 months, New York obtained the doubtful honor of being the costliest place on the planet for enterprise vacationers.
The common day by day value of a enterprise journey in New York is now $796, based on the report.
Most costly areas for enterprise journey globally
| Vacation spot | Each day prices |
|---|---|
| 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.Okay. | $583 |
| Luanda, Angola | $564 |
| Paris, France | $557 |
Supply: ECA Worldwide
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, stated Quane.
Together with “inflation-driven value 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, comparable to Washington D.C., San Francisco and Los Angeles.
Three European locations made the listing, with Switzerland remaining residence to the area’s two most costly cities for enterprise journey.
