Economic conditions cause the Swiss franc to appreciate, hotels may go under

I saw on BBC last night that the Swiss franc is appreciating and that Switzerland’s tourism industry is suffering for it. People paying in Euros and dollars don’t want to trade them for francs and the Swiss are going to countries that do use the weaker currencies to take advantage of their strong franc.

The economy is the problem – investor’s see the franc as a haven and they keep buying more. There’s an article here, but the news report on BBC showed pictures of near-empty hotel restaurants and people interviewed spoke of layoffs and 100 hotels at risk of shutting down.

I’m not familiar with the normal prices in Switzerland, but today I got my email from the Swiss tourism ministry and they say there are some good specials. Does anyone know if they really are good specials? Are they good enough to offset the extra 20% or so you might pay due the franc’s rise?

And even if you get a good hotel deal, can you afford to eat? When I was there years ago restaurant prices were steep. They should be even worse now.

Filed Under: Travel stocks & business

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