Market Analysis of Switzerland

Introduction to Switzerland In 1291, a beautiful country was born, a country with an area of 41,290 KM2, extending 348 KM East to West and 220 KM North to South. A country that as of 2017 has 8,466017people in it (SP @ data. worldbank. org, n. d. ), which can be split down to 64% German, 18% French, 12% Italian, 1 % Romansh and 6 % others. A country landlocked between Germany, France, Austria, Italy and Liechtenstein as shown in figure 1 and 2. A country which has a population that is forecasted to grow at a consistent rate as shown in figure 4. A country which held on to a foreign policy of neutrality through world wars and strife(Stefan Aeschimann, Emmanuel Bichet, Christian Catrina, Bozena Huser, Urban Kaufmann et al. , n. d. ).

A country with views and sceneries that inspired artist and fulfil dreams of lovers. The country that is spoken of right here is the lovely country of Switzerland. The Market analysis of Switzerland tourism industryThe importance of the tourism industry in Switzerland In 1991, the tourism industry of Switzerland earned $7. 094 billion, 61% of it is from foreign receipts and the total amount amounted to 6% of the Country’s GNP. Expenditure by foreigners in Switzerland are defined as export of goods and 14% of export earnings can be attributed to tourism, it is the ‘invincible’ export of the country. Furthermore, the tourism industry is one of the biggest employer of staff in Switzerland in 1991 there were 300,000 employed working directly or indirectly with the industry (Diem, 1993). As time moved on the reality slowly evolved and changed in a variety of way and mostly for the better. As of 2016, out of Switzerland total revenue of 46. 7 billion, 20. 3 billion came from tourist accommodation, meals and passenger transportation an% of the country’s export revenue was made by the tourism industry but in contrast to this growth, the tourism industry has dropped to six in ranking of total export revenue falling behind the watchmaking industry as seen in Figure 5. By 2017, It still stayed as one of biggest employers of fulltime equivalent in the country as seen in Figure 6(Swiss tourism federation, 2018). Supply and demand in the Switzerland tourism industrySupply and Demand is one of the most fundamental concept in business, Supply is referred to as the amount of a service or a product that can be offered to a consumer and demand is referred to as how much of a product or service is desired by a customer(Bush, 2016). As for the tourism industry, the supply would be amount of rooms available for tourist to stay and the demand would the customer arriving in the country. As seen in figure 6, total room supply in 2017 is 250,990 with 4,369 open establishments.

The demand in the swiss tourism industry too can be seen in figure 6 and it is seen through arrivals and stays of the tourist. In 2017 18,562,061 tourists arrived in Switzerland, which shows an consistent increase through the years. The increase is usually because of abetter economy inmost of the countries and household increased spending power. AttractionSwitzerland is country of snow, beauty and culture. According Switzerlands main tourism website, there are countless tourism locations to visit and to enjoy that if all were to be written it will the size of encyclopaedia so only a few will be named. First for shopping and lifestyle, there is Zurich Old Town With varieties of cultural offerings, a path shops selling branded and swiss brand good as far as the eyes can see and all of it set against the a beautiful medieval background(Zurich’s Old Town, n. d. ).

Next for the adventurer in all of us there is Mount Titlis a 3062m tall giant mountain where requires the new gondola TITLIS Xpress go up to the intermediate station. Then TITLIS Rotair, the World’s first revolving aerial cableway, continues all the way to the top. Along the way you may enjoy the breath-taking views as you rise up towards the heavens(Mount Titlis, n. d. ). Next if you’re a naturist then there is the UNESCO Biosphere Entlebuch which has seemingly endless moorlands, craggy karst rock formations and wild mountain streams which makes experiencing the view utterly breath-taking. Switzerland's first biosphere reserve offers untameable beauties at its finest. Almost no other region in Switzerland has as many natural treasures as the “Wild West” of Lucerne. (UNESCO biosphere entlebuch, n. d. ). Then there are those who are chocolate lover and Chocolarium is Maestrani is the place to be to satisfy a person sweet tooth where the guest are granted the understanding the processes of chocolate making. It begins with a film, followed by a look at the room with the raw materials and continues along an 80-meter glass gallery to the cornerstone of production.

The tour is interactive, expressive, communicative and informative and answers the question of why chocolate means happiness(Swiss Chocolate factory Maestrani, n. d. ). There are countless more attraction pulling people in, these are only tasting of what there is. Key consumer segmentsAs noted in a study by Thomas Bieger and Christian Laesser (2002 ), Tourist travel into Switzerland for a multititude of reasons. The main ones are compulsory travel which are people travelling because of non – voluntary factors such as business or family issues. Then we have those that travel for cultural hedonism, which mean they travel to spend time their partner while enjoying nature and the cultural heritage. Then we have family travel, where the main purpose is to spend time with the family doing literally anything (Bieger and Laesser, 2002). Germans citizen as seen in figure 7 make up the bulk of foreign tourist arriving in Switzerland in 2016, they are then followed by American, British, the French and the Chinese (Statistical data on Switzerland 2018, 2018)

P. E. S. T. L. E. Analysis of Switzerland Political

The Swiss Confederation, today made up of 26 cantons, has been in existence since 1848. The Federal Council is the government of Switzerland which consist of 7 members. They are elected by both chambers in parliament: the National Council which represents the people that has 200 seats and the Council of States which has 46 seats. The Swiss political system is also characterised by far-reaching democratic rights and popular votes. In other the swiss have a direct democracy(Statistical data on Switzerland 2018, 2018). In 2018, The Swiss take great pride in fact that they can hold onto the ideal of neutrality in these turbulent times and it has done them well. With neutrality in place, Switzerland is politically stable as proven in world war 2 when the country could have fallen apart if they had to take a side, which grants relief to the tourist entering the country for do not need to fear any wars cropping up Economy Switzerland has the second highest gross domestic product (GDP) per capita in the world. At the end of 2015 Swiss GDP per capita stood at CHF 77,943. About 74% of Swiss GDP is generated by the service sector and 25% by industry(Swiss Economy – Facts and Figures, n. d. ). Its economic performance is supported by a well-developed banking sector, capital market, and infrastructure. The threat that may come from this is twofold, firstly the extremely high currency of the country may face deflation in the near future and secondly because of the high currency Switzerland can only limit itself to attracting wealthy or middleclass tourist and some tourist may be put off the country because of the high prices. The upside here is that with the high price, Switzerland may hold on to its illusion of prestige.

Socio – Cultural

Switzerland, with its excellent human development indicators, ranked 11th out of 187 countries according to the United Nations Development Programme’s (UNDP's) 2011 Human Development Report. The country has a well-developed social security system and high wage levels, but the cost of living remains high. Social policies have been decentralized, with responsibility for legislation and implementation lying with the cantons. The healthcare system is among the best in the world(MarketLine, 2012). This seeps into the tourism industry too because better healthcare and wages, Labour will pour into any crack that may exist in the system, the only downside being that with high wages, a high cost of living will exist, making living harder for the citizens. Other worries that may come from tourism is that the culture of the country may be eroded away, there is no proof of it yet but with the heavy influx of tourist, culture will eventually have to evolve to suit preference.

Technology

The very existence of technology is fostering a change in the travel and tourism industry regarding how companies interact with customers. Augmented reality, Artificial Intelligence, Internet of things, Voice technology, Wifi connectivity and wearable devices are just a few thing that started showing up in the tourism industry. Switzerland being the tenological innovation giant bcaked with excellent research boosted sectors such as biotechnology, life sciences, medical technology, ICT, shared services, micro-technology, nanotechnology, and environmental technologies.

Research and development (R&D)-intensive industries account for more than half of all industrial production in Switzerland(MarketLine, 2012). With this much innovation, the tourism industry too will stand to benefit. Most hotel already carry free wifi but with Switzerland, a country which prides itself on hospitality, technology may dehumanize the business so most hotel in the rural area carry more traditional feel to it. As changes depend on the location, most of the hotels there all are more futuristic. Legal Switzerland also has in place a tourism policy 15 November 2017 with the purpose of Improving framework conditions for tourism, also encompassing the country’s scenic and architectural qualities, promote entrepreneurship which will increase productivity, boost the skills and competencies of all players, support structural change and strengthen the tourism labour market, exploit the opportunities presented by the digital economy and enhance the attractiveness of tourism offerings and market presence(‘Tourism Strategy of the Swiss Confederation,’ 2017). Furthermore, according to 2015 OECD data, Switzerland had the highest average annual wage compared to its fellow European countries, except for Luxembourg. Foreign employees working in Switzerland have the right to be paid at a rate equivalent to the Swiss salary in their chosen profession. This rule is prescribed in the Swiss Federal Act on Assignments (Entsendegesetz)(Swiss minimum wage and average salary in Switzerland, n. d. ). Which makes it entice to foreigner to work in Switzerland but Switzerland cares for its own people first so the companies in which you wish to work must offer enough evidence no one else is able to do your job. Other that that, Switzerland minimum wage law help all tourism and hospitality staff, considering the fact that other countries’ hospitality and tourism staff make not nearly enough to live on.

Environment

The environment is one of the most important things when it come to Swiss tourism, for one of the main reasons why tourist come to Switzerland is because of the view that why It will be utterly foolish if Switzerland allowed its own environment to be destroyed. That is why Switzerland has been at the forefront of formulating and implementing environmental laws, with an environmental chapter as part of its constitution. While the federal government is responsible for environmental legislation, its implementation has remained the responsibility of cantons and communes. Safety, health, biodiversity, and sustainable development form the cornerstone of Swiss environmental policy, and the country has been party to important regional and international environmental agreements. Worldwide, Switzerland ranked first in the 2012 Environmental Performance Index (EPI) published by the Yale and Columbia universities in the US, with a score of 76. 7 in a range from zero to 100. (MarketLine, 2012)