Singapore is now the second-most expensive destination in Asia for business travel, according to the latest Daily Rates research published by ECA International. As the Meetings, Incentives, Conferences, and Exhibitions (MICE) sector grows and travel surges, the typical daily cost of business travel in Singapore is USD 515, a USD 34 increase from the previous year. The rise in demand for travel to Singapore was due to the city’s early removal of travel restrictions compared to other locations in Asia, making it an attractive destination for business travel.

ECA International’s annual report provides average costs for hotel accommodation, meals, drinks, laundry, taxi costs, and daily essentials used by companies to determine daily expense allowances for staff who undertake business travel. Singapore overtook Tokyo to become the second-most expensive location in the region for business travel, and the 19th most expensive location globally.

While daily costs of business travel to Singapore increased by 10% in local currency terms, this rate of growth was not as high as seen in some locations in the region. Business travel expenses were over 75% higher in local currency terms in Colombo, Sri Lanka, in 2022 compared to the year before, primarily stemming from high inflation and currency depreciation. However, in some key cities like Beijing and Shanghai, the inverse was noted.

Suntec Convention Center

Elsewhere, popular tourist destinations in ASEAN saw relatively little change in travel expenses in 2022, with business travel costs rising only slightly over the last year in local currency terms. Cities like Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, all witnessed small rates of growth in local currency terms in 2022, ranging between 1% and 3%.

New York remains the most expensive location in the world for business travel, with the average daily cost of a business trip standing at USD 796. Locations in the USA continued to dominate this year’s global top 10 list, while Switzerland remained home to Europe’s two most expensive cities for business travel – Geneva and Zurich. Traditional business hubs London and Paris also retained their positions in this year’s rankings, with Luanda, Angola, rounding off the list as Africa’s most expensive city.

ECA International’s Daily Rates Research – Top ten most expensive locations for business travel in Asia

Lee Quane, Regional Director – Asia at ECA International, said, “Business travel to the city [Singapore] picked up earlier than most other locations in the region with the government’s comprehensive lifting of travel restrictions. The resulting increase in demand contributed to rises in hotel accommodation costs, while costs associated with other daily essentials consumed by business travellers also increased at a faster rate than other locations in the region. Together, these propelled Singapore to second place in Asia and 19th worldwide.”

As travel slowly recovers, it is crucial for businesses to monitor and manage travel expenses effectively. Companies should consider various factors, including currency fluctuations, inflation rates, hotel costs, and daily essentials, when determining daily expense allowances for staff who undertake business travel.

In conclusion, Singapore’s position as the second-most expensive destination in Asia for business travel is due to the growth of the MICE sector and the city’s early removal of travel restrictions compared to other locations in Asia. The rise in demand contributed to an increase in hotel accommodation costs and other daily essentials consumed by business travellers. As travel slowly recovers, it is important for companies to monitor and manage travel expenses effectively.

Written by: Jill Walsh

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