Which are the world's most expensive cities for business travel?

Singapore's head start in lifting all travel restrictions compared to other locations in Asia sparked a rise in demand for travel to the city, leading to its rise as the second most expensive location for business travel in the region.

The average business trip to Singapore now costs US$515 per day – an increase of US$34 from the previous year – according to the latest Daily Rates research from ECA International.

Lee Quane, regional director – Asia at ECA International, pointed out that the resulting increase in demand contributed to rises in hotel accommodation costs and other daily essentials consumed by business travellers, propelling Singapore to second place in Asia and 19th worldwide.

Singapore also overtook Tokyo in 2022 to become the second-most expensive city in Asia to visit for business, while Hong Kong remains in top spot. 

Inflation rears its ugly head in Asia

While daily costs of business travel to Singapore increased by 10% in local currency terms, other locations in the region have experienced even higher inflation rates, resulting in significantly higher business travel costs in local currency terms.

Countries like Sri Lanka, Laos, and Pakistan had significant increases in business travel costs in local currency terms amid high inflation and currency depreciation, as some costs associated with business travel – such as hotel accommodation – are typically incurred in US dollars by foreign business travellers in these destinations.

At the other end of scale, the fall in costs for business travellers in China has been largely due to falling hotel costs associated with the drop in demand for business travel last year. Despite this, Shanghai has still risen to become the fourth most expensive business travel destination in Asia.”

The declining yen meant that, with average daily costs of US$424 per day, business travel to [Tokyo] is now almost 20% cheaper than first-placed Hong Kong.

Lee Quane, regional director – Asia, ECA International

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Meanwhile, the yen's depreciation against the US dollar has offset the daily costs for business travellers in Tokyo, leading to its fall out of the top 30 most expensive cities for business travel globally, while other Japanese locations also experience similar drops in the past year.

“In local currency terms, business travellers’ costs rose by over 5% in Tokyo last year,” explained Quane. “However, the declining yen meant that, with average daily costs of US$424 per day, business travel to the city is now almost 20% cheaper than first-placed Hong Kong."

Southeast Asia's popular tourist destinations such as Pattaya and Chiang Mai in Thailand, alongside Denpasar in Indonesia, saw relatively little change in travel expenses in 2022, with business travel costs rising only slightly over the past year in local currency terms.

Quane added, “Hotel rates have been suppressed by low demand in comparison to pre-pandemic levels. Even a tourist hub like Bangkok, which typically receives many business travellers, only saw a moderate 4% increase in business travel costs, leaving it well outside the top 100 most expensive business travel destinations last year.”

Europe and America dominate top 20 rankings

According to ECA International's Daily Rates reports, cities across Europe and America dominate the global top 20 rankings. New York retained its position as the most expensive location in the world for business travel, with the average daily cost of a business trip standing at US$796.

A post-pandemic surge in demand for business travel and tourism to the city, along with inflation-driven price hikes on goods commonly consumed by business travellers, has contributed to a stark 8% growth in business travel costs.

Locations in the US continued to dominate this year's global top 10 list, while Switzerland's Geneva and Zurich remained home to Europe's two most expensive cities for business travel. 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.

1. New York, US
2. Geneva, Switzerland
3. Washington DC, US
4. Zurich, Switzerland
5. San Francisco, US
6. Tel Aviv, Israel
7. Los Angeles, US
8. London, UK
9. Luanda, Angola
10. Paris, France