According to Calvin Xie, the general manager of FCM Travel Greater China, the city was an ideal destination due to its abundant talent pool, proximity to Hong Kong, and its strategic position within the Greater Bay Area (GBA). FCM Travel Greater China, a corporate travel management company, recently established an "AI center of excellence" in Guangzhou, paving the way for the integration of AI into its operations. As China's outbound travel market experiences a resurgence, the company plans to invest in AI capabilities and equip its staff with the necessary skills for the technology. Xie emphasized the goal of a lean operation rather than simply increasing the number of employees, focusing on transforming the workforce for the future. FCM Travel, the flagship corporate travel arm of Australia's Flight Centre Travel Group, has offices in Shanghai, Beijing, Guangzhou, and Hong Kong. Xie highlighted the synergy between the Guangzhou and Hong Kong offices for accessing business opportunities in the bay area economic zone. While there are no plans for further office expansion, the company aims to maintain a presence in tier one cities. The pandemic-induced brain drain in Hong Kong initially posed challenges in talent acquisition and retention; however, it has become easier to recruit, particularly on the mainland, where many young professionals are eager to join multinational companies.
Xie emphasized the need for elite professionals, especially in the Greater Bay Area. FCM has witnessed a rebound in both corporate and leisure travel across China, with outbound travel in March increasing nearly fivefold compared to the previous year. The report by Sabre Market Intelligence in June identified emerging destinations such as Australia and Malaysia, which entered the top 10 choices for Chinese travelers. Business travel expenditure in China grew by 12. 6% YoY to reach $360 billion, slightly below pre-pandemic levels of $380 billion, according to a report by the Global Business Travel Association. It is expected to fully recover by the end of this year, reaching $4. 1 billion. An increasing number of business travelers are indulging in "bleisure" trips, taking advantage of the difficulty in securing visas and limited international air capacity compared to pre-pandemic times. Singapore is the leading destination for Chinese business travelers, followed by Tokyo, Bangkok, Seoul, and Frankfurt, according to Flight Centre's data. Singapore is projected to maintain its top spot in 2024, fueled by the recently established 30-day visa-free entry arrangement.
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Analyst’s Disclosure: I/we do not hold any stock, option, or similar derivative positions in the companies mentioned, nor do I/we intend to initiate such positions within the next 72 hours.
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