News

November 27, 2009

Overseas business trips fall by 16 per cent

Figures from the Office of National Statistics have revealed that foreign business trips have fallen by 16 per cent during the past year, suggesting that firms are holding back from seeking opportunities abroad because of the recession.

The findings reflect overall outbound travel patterns from the UK, which show that the total number of visits abroad dropped from 70.4 to 60.8 million over the past 12 months ? a fall of 15 per cent.

The British Chamber of Commerce's senior policy adviser, Kevin Hoctor, said the results were worrying because business growth could be affected.

"Business trips are a common way for exporters to find out what is happening on the ground in existing or potential export markets," he said. "A drop in the number of these trips is a cause for concern.

"Firms need to look to overseas markets for trade opportunities while sterling exchange rates are still favourable," added Hoctor.

The National Federation of Enterprise Agencies' chief executive, George Derbyshire, said it wasn't surprising that the number of business trips had fallen, given that cashflow was tight for so many firms.

"Businesses both large and small are dealing with the challenges from the recession, so any expenditure needs to be justified a lot more carefully," he said.

Derbyshire added that developments in new technology meant businesses should not be put off from chasing global opportunities. "Businesses can still have their meetings with overseas suppliers or network with potential partners, but at the click of a mouse rather than at the cost of an airfare," he said.