Analyse of the sector 30/11/2010
Global downturn sours travel and tourism market

By all accounts, travel and tourism in 2009, both incoming and outgoing, was negatively affected by the global economic crisis. Consumers, made insecure by the recession, started saving. For Switzerland, government experts predict economic stabilisation for 2010 at a lower level than 2009. Unemployment stood at 4.1%, according to OECD statistics, about the level of 2006. Switzerland’s GDP rose by 2% in 2009, after a 0.9% drop in the first quarter. The forecast shows that the growth rates seen in 2009 and before this will not be reached within the forecast period. A similar situation in Switzerland’s key arrival countries could have a dampening impact on tourism with hotel bookings and car rentals for years to come.

 

Trading down

 

The tour operator sector felt the pinch of fewer Swiss tourists travelling abroad, while, at the same time, there was no evidence of consumers opting for more holidays at home in 2010. Hotel bookings indicate that “staycationing” is the word for 2010, seemingly staying with friends and relatives or spending the holiday on the home balcony or in one of Zurich’s popular “Badis”, lake and river swimming pools. As demand is shifting to cheaper alternatives, the winners in the crisis are budget accommodation and budget travel options.

 

Business travel suffers

 

Business travel from and to Switzerland generally experienced a slump during 2009 and 2010, mainly due to reduced economic activities during the hot phase of the crisis. Airlines felt the drop in first-class and business class travel as companies switched to low-cost airlines, 4- and 5-star hotels lost out as companies downgraded to 4-star accommodation. Some governments expressed criticism of Swiss banks for harbouring tax evaders and put pressure on banks to release information. All this contributed to a palpable reduction in incoming business traffic.

 

The thin green line

 

Climate change is moving steadily into the foreground of global concern. Sustainable travelling, across all categories – outbound, inbound and domestic – is becoming more important as an attraction for active tourists, with Switzerland aiming at becoming a model of an ecologically conscious tourism destination. As a contribution to this aim, and to mark the United Nations designated biodiversity year, the Swiss environment ministry and various non-governmental organisations have teamed up to develop a series of events to run in 2010 to boost public understanding of what biodiversity means and how it can be enhanced in Switzerland. There is also a growing “voluntourism” sector, where travellers pay good money to make a working contribution to the environment. “Get natural” was the 2009 slogan with which the Switzerland National Tourism office headlined its campaigns.

 

Wellness more than skin deep

 

At the premium and luxury end of tourism, traditional wellness holidays remain a strong feature of Swiss tourism. However, there are indications that the “pampering” side of wellness is gradually being supplanted by a more physically active and, as an extension or an alternative to this, a more spiritual approach. This trend benefits more modest, mid-size hotels and less well-travelled areas. Also, hostelry – in particular mountain refuges – and camping sites are likely to benefit. It will also grow as consumers eschew far-flung destinations in favour of holidaying closer to home.

 

Consolidation in a cold climate

 

As the travel industry is moving from a contracting phase towards modest recovery in the autumn, favoured by exceptionally good weather, some small operators have gone out of business or are being taken over by larger enterprises. The industry is consolidating and moving closer together. The future of travel is summed up by most industry insiders as “more frequent, but shorter holidays with more mod cons and luxury and more aware of sustainability issues”.