IVIS Country Analysis –Switzerland

SWITZERLAND

253,940 230042arrivals in the United States

Loss of 23,898 over 2002, -9.4%

16.1% of all Swiss Long-Haul Travel

-8.6% over 2002

SUMMARY

In 2003, total Swiss outbound travel was nearly flat, declining only 0.5 percent over 2002, while generating 10.3 million arrivals to destinations worldwide. Long-haul travel from Switzerland was flat (-0.1%). Swiss travel to the United States declined 9.4 percent over 2002. As a result, the U.S. market share declined 8.6 percent in 2003 year-over-year resulting in a market share indicator (MSI) of 16.1 percent of the Swiss long-haul market. U.S. arrivals from Switzerland in 2003 declined for the fifth consecutive year resulting in the lowest MSI this decade.

The Swiss economy was negative in 2003, with real GDP declining 0.4 percent for the year. Real private consumption was also weak, growing only 0.3 percent in 2003 over 2002. The Swiss unemployment rate grew to 3.8 percent, which some countries consider full employment. Consumer prices were also flat increasing a mere 0.6 percent, held in check by the slow economy. While Switzerland is not a member of the European Union, its slow economic growth was no doubt partially caused by the sluggish economies of its European neighbors and trading partners.

The Swiss franc, like the euro and other European currencies, appreciated substantially against the U.S. dollar in 2003 (16.4%). Regardless of the strength of its currency, Switzerland's sluggish economy inhibited long-haul travel and travel to the U.S. in 2003.

The United States is the number one long-haul country destination for Swiss travel, receiving 16.1 percent of the long-haul market in 2003. Other popular countries for this market were Thailand (8.3%), Tunisia (7.7%), Canada (5.4%), and Brazil (3.9%). Egypt and Tunisia both gained market share of Swiss long-haul travel, while the other country destinations lost share.

Source: Global Insight

With than more nearly one third (29.0%) of the long-haul travel market from Switzerland in 2003, Africa was the most popular regional destination for the Swiss. Asia was the second most popular regional destination, garnering 26.5 percent of the Swiss long-haul market. The U.S. was third as a region with 16.1 percent of the long-haul market, while South/Central America earned 8.6 percent and the Caribbean earned 6.9 percent. The U.S. and Asia both lost market share in 2003 while the other regions gained share.

Source: Global Insight