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US business travel market curbed by Brexit doubt

GBTA downgrades Q1 predictions from 2.8 per cent growth to 1.8 per cent, amid Brexit and US election uncertainties
13/04/2016

Pictured: The referendum on whether or not Britain should remain in the EU will take place on 23 June

The uncertainty over the UK's referendum on European Union membership has been blamed for hindering US business travel growth, as Global Business Travel Association (GBTA) downgrades its prediction for 2016.


The US market is expected to grow 1.8 per cent in Q1 of 2016, which was revised down from initial predictions of 2.8 per cent due to global economic uncertainties like 'Brexit' and the US presidential election.


However, the GBTA BTI Outlook - United States 2016 Q1 report reveals a brighter outlook for 2017.


Michael McCormick, GBTA executive director and COO, said: “If the past several years could be summed up as, ‘cautious but slow growth,’ 2016 is looking like it will be summed up as, ‘uncertainty causing slow growth.’ Thankfully, a much brighter 2017 appears on the horizon.


"There are a number of factors leading to uncertainty, which is affecting growth in both our sector as well as the overall global and domestic economies. However, these issues will likely resolve themselves later this year and create more confidence for individuals and organizations alike in 2017.”


Overall for 2016, the report predicts US business travel to increase by 1.9 per cent to $295.7 billion (£207 billion) and business travel volume to increase 2.1 per cent to 509 million trips.


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