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Save the cable cars!

OK, finally found the correct WSJ article. Ironically, the same guy wrote about the same thing at the same time last year (guess he has it on a tickler):

For Swiss tourism, a weakening of the currency would provide a welcome respite. The sector, which employs about 150,000 people, has been struggling with lower bookings and a lack of snow during an unusually mild winter.

Overnight stays by foreign travelers fell 1.6% in the first 10 months of 2015, while revenue from cable-car use has fallen 11% so far this winter, according to the Swiss cable-car association. Many resorts have offered extras to customers, such as subsidized ski passes and spa treatments.

“Switzerland has a reputational problem that it is just too expensive,” said Andreas Züllig, owner of the four-star Schweizerhof Hotel in the Alpine resort of Lenzerheide. “We would really like the franc to weaken—and also for it to snow.”

Posted by
7209 posts

sorry phred - but your point here is???

Posted by
32350 posts

phred,

Thanks for posting. This is good information on how the "floating" Swiss Franc has affected the tourism industry there. Perhaps this will be some incentive to restore the Franc to it's former status?

Posted by
4637 posts

Some years ago I was in Switzerland. At that time you got almost 2 francs for 1 dollar. And it was still expensive there. Then at one point Swiss franc was even stronger than US$. Now it's practically one to one with dollar negligibly stronger: 1 US$ = 1.006 Swiss franc. So for us (and others) Switzerland is almost twice as expensive as it was when I was there. I can go for one week Poland, Czech Republic, Slovakia and spend the same as in one day in Switzerland. That's why softening of franc will be more than welcome by us and by Swiss businessmen, too.

Posted by
1043 posts

Perhaps this will be some incentive to restore the Franc to it's former status?

No it will not. For the moment we are done with trying to peg the CHF, the most recent effort result in us hosing up Euro bonds equal to the deficit of the largest 7 Euroland economies! On the other hand during the recent recession we reduced the national debt from 45% to 37% of GDP, while still keeping unemployment below 4% for the most part.

As for the article, it fails to point out that we, the Swiss taxpayers, subsidise the cable cars one way or another, so they are not fully dependant on tourism by any means. And as for the Schweizerhof, most of it's guests are not very price sensitive from what I hear...

Posted by
33816 posts

if there is no snow the skiers and boarders will not go. No amount of manipulating the currency will cause snow to fall.

Posted by
4853 posts

Money can do anything.

If anything, knowing this information might help in negotiating a better deal. Not necessarily on a room rate but on freebies thrown in like meals, wifi, etc. if they aren't included.

Posted by
8965 posts

What is the impact of the currency situation on the banking industry in Switzerland? Tourism is nothing compared to that business.