Swiss Travel & Tourism Industry Accounted for 4.5% of Country’s Total Employment in 2011, Reports Timetric
24 Sep 2012 • by Natalie Aster
According to the Travel and Tourism Competitive Index (TTCI), Switzerland has the most competitive travel and tourism sector in the world. In 2011, the Swiss travel and tourism industry contributed 2.5% to the national GDP and directly accounted for 4.5% of the country’s total employment. During the review period (2007–2011), the total number of trips undertaken by residents, both domestic and outbound, decreased from 19.7 million in 2007 to 18.8 million in 2011, registering a CAGR of -1.24%. This decrease was primarily attributable to the economic downturn, a high unemployment rate and curtailed spending by residents.
Switzerland is the 16th most visited country in Europe and, according to World Tourism Organization (UNWTO) data, ranked eighth in the region for international tourism receipts in 2011. In the same year, inbound tourism reached 9.5 million after registering a review-period CAGR of 1.19%. The global economic recession, job losses and salary cuts had a negative impact on the number of inbound arrivals in the country which declined by 3.3% in 2009. However, the impact was short-term and inbound tourism rebounded quickly, increasing by 3.4% in 2010 and continued to increase in 2011. This growth was driven by a recovery in the economy of key source markets, rising consumer confidence, competitive prices of travel products and government promotions. The European region accounted for the highest proportion of all arrivals in 2011 with a share of 72.3%. International tourist arrivals are expected to grow at a CAGR of 1.80% over the forecast period, resulting in 10.4 million arrivals in 2016.
The new report, "Travel and Tourism in Switzerland: Key Trends and Opportunities to 2016", says the combination of the economic recession, increased unemployment and decreased spending propensity among Swiss residents caused Switzerland’s domestic and outbound trips to decline in 2009. While domestic trips rebounded quickly in 2010 and continued to grow, outbound trips recorded a positive growth in 2011 only. Domestic tourism volumes are expected to record a CAGR of 2.12% over the forecast period to reach a projected volume of 9.4 million trips in 2016. Outbound tourism volumes are also expected to increase with an anticipated CAGR of 2.54% and a projected volume of 11.7 million trips in 2016. This increase is expected to be primarily driven by economic growth, increased hiring activity, improved consumer confidence and the availability of tour packages at competitive prices.
The strong franc, which gained 24% against the euro from 2009–2011, made travel products more expensive for international buyers and as a result, tourism industry participants, such as hoteliers and retailers, recorded a decline in revenue. The price sensitivity of tourism means that the country is losing tourists to neighboring destinations such as France, Germany and Austria. These countries provide similar travel products, such as skiing and hiking, at comparatively lower prices, due to the weak euro being compared to the Swiss franc. Service providers are responding to this issue by cutting prices while some quote prices in euros.
Travel and Tourism in Switzerland: Key Trends and Opportunities to 2016
Published: July, 2012
Price: US$ 1.950,00
More information can be found in the report “Travel and Tourism in Switzerland: Key Trends and Opportunities to 2016” by Timetric.
To order the report or ask for sample pages contact [email protected]