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.
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.
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.
Vicky is the co-founder of TravelDailyNews Media Network where she is the Editor-in Chief. She is also responsible for the daily operation and the financial policy. She holds a Bachelor's degree in Tourism Business Administration from the Technical University of Athens and a Master in Business Administration (MBA) from the University of Wales.
She has many years of both academic and industrial experience within the travel industry. She has written/edited numerous articles in various tourism magazines.
