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According to a new Timetric
report, Switzerland’s
travel and tourism rates are set to increase towards 2017 at a compound
annual growth rate (CAGR) of 2.53%, slowly enabling it to recover from severe
tourism declines in the past few years.
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Accommodation is set to rise
at a projected CAGR of 2.46%, with location playing an important role as many
hotel planning projects are in place. The building of the Brunngasslein Four
Star Hotel with 65 rooms is estimated at a cost of US$40 million and the
Grindelwald Grand Hotel Regina has an estimated cost of US$130 million. The
tourism sector offers Switzerland
with 9.9% of its employment rates, opening up many jobs within the region.
Switzerland’s travel
and tourism rate declined from 6.8 million visitors to 6.4 million in 2012
due to economic deceleration in the Euro zone and Switzerland’s
over-dependency on in-bound tourism. It is ranked 139th out of a
possible 140 countries in terms of price and competitiveness, according to
the world Economic Forums Travel and Tourism Competitiveness report 2013. It
is considered to be one of the most expensive countries in Europe,
with a restrained visa policy which stops tourists visiting from nations
undergoing periods of economic difficulties. Jurg Schmid, head of Switzerland
Tourism, said, “People still love Switzerland, but their budgets
are strained.” Switzerland’s
hotel room occupancy rates also declined from 46.7% in 2013. Its hospitality
industry’s total revenues therefore showed further decline at a CAGR of
-2.51% during 2008-2012, due to its weak economic conditions and current
European debit crisis.
