No country is away from its effects. The crisis hits an economy through two channels. One is through the financial sector and other through the real sector (IMF, 2009).Many industries and businesses, which were…
It is organized as follows. Section 2 discusses the international trends regarding the impact of global financial crisis on the performance of luxurious hotels. Section 3 discusses the impact of global financial crisis on the luxurious hotels in Switzerland. Section 4 discusses the impact of global financial crisis on the visits of guests particularly foreign guests in the hotels. Section 5 discusses the impact of global financial crisis on the unemployment trends in the Switzerland hotel market. Section 6 concludes the report.
Since the tourism market, particularly the hotel business is the part of a country’s overall economy, all the major conditions in the overall economy are likely to have an impact on this market also. The trends in the European market show that there has been heavy decline in the investment in the hotel investment market all over Europe .It was the highest in the UK market followed by France and Germany. There has been heavy decline in the hotel occupancies and the unemployment rates all over the European market ((BNP Paribas real estate, 2009).
In Switzerland, tourism is considered as one of the main contributor’s to the country’s wealth and hotel businesses are important components of the tourism industry(OECD,2000). The luxurious hotels in Switzerland have been attracting tourists from all over the world historically. However, in the aftermath of the global financial crisis in 2008, there has been a significant fall in the demand for luxury goods since people had to save money for essential goods like food, housing etc. This has led to a drop down in the luxurious hotel businesses in Switzerland. Hence, though it is reported that the hotel industry in Switzerland has recorded 37 million overnight stays in 12 months at October end greater than the 12 months period in the last year, according to reports ,a 3 percent fall in the overnight stay ...
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