Paul Bloxham Paul Bloxham

Avoiding economic 'hard landing'

Increased travel will be a silver lining for both the New Zealand and Australian economies amid the global challenges of high inflation, supply chain disruptions and the conflict in Ukraine, says one of the region’s leading economists.

HSBC chief economist Paul Bloxham has released sneak highlights of his upcoming presentation at Flight Centre Corporate’s hybrid Illuminate conference on 20 October.

He says travel will be a key factor shielding Australasia from a hard landing due to the slowdown of the global economy.

‘Travel is going to be a bright spot in the current challenged world,’ Bloxham adds. ‘Now that the world is reopening, there is a strong appetite for travel among the population and we expect to see a continued increase in travel activity, particularly domestically. Corporate travel is reviving faster than leisure, with businesses returning to face-to-face contact, particularly at conferences and other events.’

Bloxham anticipates consumer spending in Australia to slow from 6% to 2% next year and he also expects much of the spending that is done to be redirected to services, including travel and hospitality.

He points out that a travel bounce back between New Zealand and Australia is already underway.

Illuminate is hosted by Flight Centre Travel Group’s corporate brands – FCM, Corporate Traveller, Flight Centre Business Travel, Stage and Screen and FCM Meetings and Events.

This year it will be held in person at The Venue in Sydney’s Alexandria and live streamed.