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MARKET COMMENTARY
The Alps straddle eight different countries East to West (Slovenia, Germany, Austria,
Liechtenstein, Monaco, Italy, Switzerland and France). Of these, it is of course Austria and
the final three that are best known for their challenging ski resorts, although keen skiers
should not ignore
Kranjska Gora
in Slovenia or
Garmish-Partnenkirchen
in Germany.
Five of these countries are EU member states, the remaining three, including Switzerland
are independent. While therefore they might share the same time zone, Switzerland is
the odd one out when it comes to currency. This is important for an economy that de-
pegged from the Euro in January 2015 and whose exports have suffered as a consequence
(down 3.1% year on year to September ’17). The strength of the Swiss franc has inevitably
deterred some non-resident tourists and while these were down 1.9% in 2016, revenue
generated by tourism was in fact up year on year by circa 1%. This suggests that either
foreign tourists are undeterred by the “reassuring” expense of Switzerland, or that the
Swiss tourist board is extremely good at its job.
12 months ago, we advocated the necessity for ski resorts to expand their offering, invest
in infrastructure and to engage with a younger “millennial” audience. While we cannot
claim to have been the catalyst, this is precisely what ski resorts are doing across The Alps
and it is both welcome and reassuring for the future of the mountain economy.
44 2017 market commentary