Switzerland Today

Dear Swiss Abroad,

It’s around this time of year, when all the tennis greats are playing Grand Slams, that Switzerland really misses Roger Federer. But there is one part of Switzerland that has had enough of the tennis star. Apparently, Federer has angered some public access campaigners with his plans to build a boathouse on the shores of Lake Zurich.

Public access campaigners say it’s nothing personal, but Federer isn’t just any rich person. When you target Federer, you are prepared to make headlines.

Speaking of, here are some other stories making headlines in Switzerland.

Swiss tourism is expected to have a good summer. Keystone / Jean-Christophe Bott

In the News: Bumper tourism season, Russian spies, and cryptocurrency.

• Swiss hotels and holiday hotspots are looking forward to another record summer with Chinese guests in particular predicted to boost overnight stays by 0.4%, according to the KOF Swiss Economic Institute.
• Parliament has instructed the Swiss government to get tough on Russian spies by expelling anyone who endangers Swiss national security with illegal intelligence activities. The Senate mirrored an earlier vote by the House of Representatives to expel, rather than prosecute, offenders.
• UBS’s Asia-Pacific president signaled that most of the bank’s job cuts in the region are over as it nears the official completion of its historic merger with Credit Suisse. UBS Asia Pacific president told Bloomberg the bank tries not to cut jobs, but roles are assessed every year based on productivity.
• More than a quarter of Swiss banks are offering clients access to cryptocurrency investments, or have plans to set up such services, despite high levels of global scepticism towards this investment option.  This is according to a study published by Lucerne University of Applied Sciences and Arts.

Switzerland has a lot at stake in the peace conference Keystone / Anthony Anex

Switzerland prepares for a peace conference with or without Biden.

Will US President Joe Biden be at the Ukraine high-level peace conference in a couple weeks? It depends on the day. Yesterday, papers reported that the US is planning to send a delegation, but it isn’t clear what level it will be at.

Five days ago, Bloomberg reported that Biden plans to skip the Ukraine peace summit for a Hollywood fundraiser according to sources close to the matter. A month ago, the Swiss papers said Biden is likely to make an appearance at the conference after he attends the G7 meeting in Italy.

Ukraine President Volodymyr Zelensky added pressure today, according to a report by Reuters. He said that if Biden missed the peace summit it would be like a standing ovation for Russian President Vladimir Putin.

But Switzerland is playing its neutrality card. The NZZ reportedExternal link today that Biden isn’t the only one that the host country is trying to lure to the shores of Lake Lucerne. The government is also trying to persuade Russia to take part. Foreign Minister Ignazio Cassis has always emphasised that peace is only possible when both warring parties are at the table, and never ruled out an invitation to Russia. Apparently, several Federal Councilors are trying to send an invitationExternal link to Russia.

What is clear is that it isn’t just peace that is at stake but Switzerland’s role as a mediator. As NZZ writes, “the gathering of numerous heads of state could be a small step towards peace – and a big one in Switzerland’s foreign policy”.

Holiday homes are in high demand in Verbier. Keystone / Cyril Zingaro

Holiday homes are getting more expensive, and locals aren’t happy about it.

St. Moritz and Zermatt have long been popular holiday destinations. Even in towns that rely heavily on tourism, you still need locals to run shops, manage restaurants, and keep the lights on. But housing prices are rising in many of these towns that few locals can afford to live there.

Since the end of 2019, holiday apartments in the Swiss Alps have become 30% more expensive, according to a UBS reportExternal link analysing 140,000 properties. For the first time, the French-speaking resort town Verbier took the top spot, followed by St. Moritz and Zermatt.

In Verbier, an apartment costs over CHF21,500 per square metre. Most apartments aren’t big luxury chalets but renovated apartments of 60 to 80 square metres. This is good for homeowners, so good that many are cashing in and leaving. This is leaving fewer locals to keep villages running.