DUBAI – UAE business executives plan to travel more frequently over the next 12 months as an improvement in the economy spurs a recovery in the travel industry, a survey by pollster YouGov showed on Monday.

Forty-six percent of executives polled by YouGov said they plan to travel more in 2010 compared with 24 percent a year ago, while 16 percent said they expect to travel less this year.

“It has been a lean year for executives used to travelling for business around the world on company expenses, but business travel looks set to take off again,” Jane Wilson, director of travel and tourism research, said in a statement.

“As people are feeling more positive about the economy and are increasingly focused on growth, they are now planning to travel on business more,” she added.

Airlines and hotels have been hit hard by the travel industry downturn as companies cut back on business travel to rein in costs amid the global recession.

Airlines have been forced to slash fares as passenger traffic nosedives, while hotels have cut room rates as occupancy and revenues plunges. Premium travel and accommodation have been the worst affected.

Tourism in the Middle East dropped 6 percent in 2009 as the sector suffered at the hands of the global recession and swine flu pandemic, U.N. World Tourism Organisation (UNWTO) figures show, but the organisation forecast tourism would rebound in 2010.

In an indication that companies are still trying to save money in the economic downturn, less executives are flying first or business class compared to a year ago, according to the survey, which polled 330 leisure and 255 business travellers in January.

Twenty-four percent of executives said they flew first or business class in January compared with 31 percent a year ago.

Fifty-three percent of respondents said they are flying economy class when they travel, but 55 percent said they plan to fly more premium economy class this year, compared to 9 percent a year ago.

“The financial crisis has forced companies to look more at what these business trips can achieve. And the optimistic expectations show that many firms continue to manage their costs on travel related activities that add to the organisation’s value and long-term revenue,” Wilson said.

Source: business.maktoob.com