Effects of the Economic Recession on Swiss Tourism

Abstract

The tourism industry is a very major contributor to Switzerland's economy. However, in recent years, global economic downturns have negatively impacted the tourism revenue. This research examines the effects of the economic recession over the past 5 years on Switzerland's lucrative tourism industry. Specifically, it investigates if the rising inflation and unemployment have reduced the local tourism and if income inequality has deterred international travelers. A qualitative electronic literature review was conducted analyzing the recent studies on Swiss tourism from 2020-2023. Articles were screened for relevance and 5 studies were selected for a final review based on inclusion criteria. The data shows international tourist visits to the United States declined by 62% during COVID-19. Additionally, overnight hotel stays fell 26% in the Zurich from pre-pandemic levels. However, domestic travel proved to be very resilient as Swiss nationals opted for staycations. Of the metrics examined, international tourists and total tourist arrivals had the strongest correlation with the economic decline, with over 80% of sources confirming this relationship. However, factors like resort bookings, culinary sales, and also popularity of mountain sports showed weaker connections. Ultimately, there is insufficient evidence to conclusively state the economic hardships have significantly dampened Switzerland's tourism industry. While global recessions may temporarily slow the visitor numbers, Switzerland's appeal remains largely impervious to the outside financial instabilities. Further quantitative research through tourist surveys could provide much more clarity.