Hong Kong is now the most expensive location in Asia for business travel. This was one of the findings of the latest Daily Rates research published by ECA International, the world's leading provider of knowledge, information and software for the management and assignment of employees around the world.
“Hong Kong has returned as the most expensive place in Asia to visit on business, after overtaking Tokyo in the rankings” said Lee Quane, Regional Director – Asia for ECA International. “However, this change is mostly due to the overall price of business travel in Japan decreasing in Dollar terms after the Yen fell in value over the course of 2017. The cost of business travel in Hong Kong has remained unchanged from last year with the typical business trip now costing USD 508 per day on average.”
A typical business trip to Tokyo will now cost on average USD 501 per day, down from USD 537 in 2016.
Updated annually, ECA’s Daily Rates reports provide average costs for hotel accommodation, which makes up the bulk of any daily allowance, as well as meals, drinks, laundry, taxi transport and daily essentials. This information is used by companies to determine daily expense allowances for staff who undertake business travel.
Singapore has continued to rise in the rankings and is now joint third after a slight increase in the price of business travel. A typical business trip would now cost USD 479 per day on average, compared with USD 472 last year.
Chinese cities have seen an increase in cost for a standard business trip, with Shanghai now ranked as the 9th most expensive location for business travel in the region.
Quane said “Chinese cities have become costlier for business travellers in the past 12 months. Increased prices of goods and services commonly consumed by business travellers has led to the rise of many Chinese cities in our rankings. However, despite the increase, Shanghai is still much cheaper than Hong Kong or Tokyo for business travel and is over USD 100 a day less expensive on average.”
Meanwhile, the cheapest region for international business travel continues to be Malaysia, with Kuala Lumpur and Johor Bahru remaining at the bottom of the rankings.
“The continued weakness of the Malaysian Ringgit against major currencies has ensured that the cost of business travel in Malaysia is cheaper than elsewhere in Asia,” adds Quane. “Although fellow ASEAN countries such as Indonesia, Thailand, Brunei and Cambodia have cities which rank amongst the cheapest in the region for business travel the cost of business, travel remains low in Malaysia with the cost of a business trip to Kuala Lumpur being less than half of what it is in Hong Kong.”
Although Hong Kong is Asia’s most expensive location for business travel, it ranks outside of the top 20 locations globally, and is ranked 29th overall, significantly cheaper than in first placed New York where the average business trip would cost a total of USD 793 per day.
Quane explained “New York tops the rankings as the most expensive location for business travel due to the high cost of hotels and travel, as well as mandatory 15-20% tipping policies during meals out. A high demand for hotels especially means rates can be charged at a premium and this is reflected in the average cost of a stay at a 4* hotel, which currently stands at a huge USD 509 per night.”
Second in the global rankings, and the most expensive European location for business travel, is Geneva where the average business trip would cost USD 720 per day.
Quane said “Swiss cities have always been expensive locations for business travel, and 2017 was no different as the Swiss Franc has continued to perform very strongly. On top of this, Switzerland has long been considered a major financial and banking hub and will remain so for the foreseeable future, meaning that business travel to Swiss locations will keep on being a necessity.”
Ten most expensive locations for business travel in Asia
|Location||2017 ranking||2018 ranking|
|Seoul, South Korea||=3||3|
|Busan, South Korea||5||8|
Ten most expensive locations for business travel globally
|Location||2017 ranking||2018 ranking|
|New York, USA||1||1|
|Washington DC, USA||8||7|
About ECA's Daily Rates
ECA's Daily Rates for business travellers help organisations to anticipate the cost of business trips and short-term assignments. Globally, the Daily Rates reports for 2017-18 are available for 375 locations in 192 countries.
Each report itemises costs for the following expenses for flexibility when calculating allowances for short trips abroad:
PLEASE NOTE - 4* hotel accommodation was used as the point of comparison for hotel accommodation costs in these rankings as it best represents the typical level of accommodation used by business travellers.
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