Swiss franc surge threatens tourism

TRAVELLERS to
Switzerland – and
the Swiss Alps – can
expect extra strain on their
wallets, following a 19%
increase in the value of the
franc against the rand. This
follows the Swiss National
Bank’s decision to cancel
the fixed exchange rate
between the Swiss franc and
the euro on January 15.
Axel Simon, SWISS
International Air Lines
director for Southern Africa,
says: “The decision by the
Swiss National Bank has
ramifications for bookings.
A weaker euro makes
Switzerland more expensive
– and thus less attractive
– for visitors from South
Africa. This may mean that
travellers will book Italy or
another European option as
a skiing destination for the
time being.”
Alain Chisari, chief
commercial officer of
Edelweiss, says: “It is too
early to say what effect this
will have. In the coming
weeks, Edelweiss will
closely monitor the price
development between these
two currencies.”
Meanwhile, should the
franc continue its upward
surge, tour operators will
have to look at their pricing.
A statement from Club
Med says: “The exchange
rate is an important factor
when we define our pricing.
No decisions have yet
been made but if there
is a strong impact on the
operating costs of our
resorts in Switzerland then
we would have to apply price
increases.”
John Ridler, pr consultant
of Cullinan Outbound
Tourism, says: “Because
Switzerland is already
expensive, many of our
customers only visit for
short periods as part of a
larger European itinerary.
This situation is likely to
make choosing to continue
to do so a more difficult
decision.”
“In the short term, if the
franc remains as strong as
it is right now, we can expect
a decrease in the bookings
from incoming markets,”
Switzerland Tourism said in
a statement.