Swiss tourism industry resists economic blues

Peter Keller says the industry is starting to recover. hotel+tourismus revue

Crippled by the strong Swiss franc and the global economic downturn, Switzerland’s tourism industry is experiencing difficult times.

But Peter Keller, the Swiss head of tourism at the Organisation for Economic Cooperation and Development, says Switzerland’s saving grace may be its excellence in top-of-the-range tourism.

Political instability, the war in Iraq, the Sars virus and the weak economy have put a strain on global tourism, which has seen a drop in demand ever since the end of 2001.

According to the Federal Statistics Office, spending by foreign visitors in Switzerland dropped by SFr445 million ($330 million) last year from 2001, to SFr12.7 billion.

swissinfo: After the September 11 attacks, the war in Iraq, the Sars epidemic and the weak global economy, how is the global tourist industry faring?

Peter Keller: The global tourist industry has obviously taken a bit of beating from a succession of external events, which have brought about a severe drop in demand.

But, as is always the case after such crises, the demand will grow again significantly. Today the sector is starting to shake off these difficulties, albeit slowly, and this will pre-empt a recovery.

swissinfo: Has the current downturn in the global tourism market changed the way tourists travel?

P.K.: We’ve noticed a marked growth in domestic and interregional tourism in the recent months. This has slightly compensated for the drop in intercontinental travellers.

swissinfo: What about the situation in Switzerland?

P.K.: The conditions in Switzerland are not ideal. Firstly, the strength of the franc has closed the door to numerous potential clients. What’s more, the high prices in comparison to Switzerland’s neighbours have curbed the country’s competitiveness.

swissinfo: Is there anything the government can do to alleviate the current difficulties the tourist industry is facing?

P.K.: The government can’t manage the crisis by implementing emergency measures for the tourist industry. But it can make long-term amendments to the structure of the industry.

This year, parliament decided to improve the structure and the quality of the Swiss tourist industry. It released funds to give additional financial help to hoteliers to allow them to carry out renovations.

swissinfo: Does the Swiss hotel industry suffer from its narrow focus on top-of-the-range travel?

P.K.: No, it’s a good thing. Switzerland is very good at offering high quality holidays. And, as the country’s prices are high, it is well positioned to do so.

Middle of the range holidays don’t offer much scope for profit, but at the lower end of the market, there is money to be made. Youth hostels and backpackers’ hotels in particular have recently become more popular.

swissinfo: The Swiss tourist industry has repeatedly come under fire in the past for its poor quality of service. Has this improved over recent years?

P.K.: I don’t think it can be said that the general standard of service is unsatisfactory in Switzerland. It’s above all a management issue, and that can only be looked at on a case-by-case basis.

Besides, surveys on Swiss tourism show that clients are happy with the standard of service. But it is true that we have launched new initiatives for quality service. There’s always room for improvement.

swissinfo-interview: Jean-Didier Revoin (translation: Joanne Shields)

Key facts

In 2002, foreign tourists spent SFr12.7 billion in Switzerland, a drop of 3.5 per cent on 2001.
A total of 6.9 million tourists visited Switzerland last year.
The Swiss spent SFr10.3 billion while travelling abroad in 2002, a decrease of 2.4 per cent from the previous year.
Germans were the group of tourists that visited Switzerland the most in 2002, with Americans second and the British third.

In brief

Demand in domestic and interregional tourism has picked up, compensating for the drop in intercontinental travellers.

The strong franc and high prices have deterred many travellers from coming to Switzerland.

Despite complaints about poor service, Keller says the general standard of service in Switzerland is adequate.