💎 Fed’s first rate cut since 2020 set to trigger market. Find undervalued gems with Fair ValueSee Undervalued Stocks

Swiss tourism fears crisis, seeks state support

Published 02/12/2009, 06:46 AM
Updated 02/12/2009, 06:48 AM

ZURICH, Feb 12 (Reuters) - Switzerland expects the financial crisis to hit its tourism industry hard from this summer after a bumper ski season, the tourism board said on Thursday, calling on parliament to approve cash for extra marketing. "Swiss Tourism expects the fall in the number of overnight stays to accelerate after the winter sports season. In the summer of 2009 the economic crisis is likely to hit tourism with full force," the board said in a statement.

Tourism is a vital part of the Swiss economy, with spending by foreign tourists making up 2.5 percent of gross domestic product. The Alpine country is currently enjoying one of its best skiing seasons for years after heavy snowfalls.

While domestic tourism is expected to hold up, the tourist board predicts fewer visitors from Asia, the rest of Europe and particularly the hard-hit economies of Britain and the United States. The strong Swiss franc is also hurting the industry.

The tourism board called on parliament to approve an extra 12 million Swiss francs ($10.37 million) in spending for the industry that the cabinet proposed on Wednesday.

"Extra targeted marketing is the only short-term measure possible to stimulate demand and dampen the effect of the crisis," it said.

The BAK Basel Economics think-tank has predicted a 4 percent drop in foreign demand in the Swiss tourism industry for the November 2008-October 2009 period and no recovery until the end of 2010. (Reporting by Emma Thomasson; editing by Stephen Nisbet)

Latest comments

Risk Disclosure: Trading in financial instruments and/or cryptocurrencies involves high risks including the risk of losing some, or all, of your investment amount, and may not be suitable for all investors. Prices of cryptocurrencies are extremely volatile and may be affected by external factors such as financial, regulatory or political events. Trading on margin increases the financial risks.
Before deciding to trade in financial instrument or cryptocurrencies you should be fully informed of the risks and costs associated with trading the financial markets, carefully consider your investment objectives, level of experience, and risk appetite, and seek professional advice where needed.
Fusion Media would like to remind you that the data contained in this website is not necessarily real-time nor accurate. The data and prices on the website are not necessarily provided by any market or exchange, but may be provided by market makers, and so prices may not be accurate and may differ from the actual price at any given market, meaning prices are indicative and not appropriate for trading purposes. Fusion Media and any provider of the data contained in this website will not accept liability for any loss or damage as a result of your trading, or your reliance on the information contained within this website.
It is prohibited to use, store, reproduce, display, modify, transmit or distribute the data contained in this website without the explicit prior written permission of Fusion Media and/or the data provider. All intellectual property rights are reserved by the providers and/or the exchange providing the data contained in this website.
Fusion Media may be compensated by the advertisers that appear on the website, based on your interaction with the advertisements or advertisers.
© 2007-2024 - Fusion Media Limited. All Rights Reserved.