The rising popularity of Switzerland may be put to test this year as Asian currencies weaken
Two major developments – Asian currency depreciation, which continues to slow travel from South-east Asia, and recent terrorist attacks and threats to Europe – will determine how Switzerland inbound will fare this year.
In the aftermath of the November attacks in Paris which were followed by terrorist threats to Belgium and England, travel consultants are looking out for alternative destinations in Europe – Switzerland and lesser-known cities included – as they expect the general demand for the continent to drop this year.
Ian Evasco, retail team leader-travel products of Adventure International Tour, Philippines concurred that tourists could divert to Switzerland as “it is in the heart of Europe and has always been a very safe and secure destination, which is very important”.
Indeed, safety and security have always been Switzerland’s selling point, apart from its natural charm as an “all-time, all-season destination” with clean air, water and environment and efficient transport system.
But its expensive image – dearer than Paris and other more popular European countries – is a challenge, according to South-east Asia travel consultants who attended the 18th Switzerland Travel Mart in Zermatt last September.
They noted that the depreciation of a basket of Asian currencies made Switzerland even more expensive, while the economic and political situation in specific countries kept people hesitant to travel. So much so that towards the end of 2015, business from Singapore and Malaysia to Switzerland were reported as “bad”, and from Indonesia “very bad”.
While Switzerland is not about to cheapen its prices, it is luring Asian FITs, families, repeats and mini groups with value-added products. Foremost of these
is the Swiss Travel Pass for unlimited travel by rail, road or waterways across the country.
Cynthia Tan, operations director of Roystar Travel & Tours, Malaysia, said considering the expensive public transport in Europe, the Swiss Travel Pass made Switzerland affordable, enabling travellers to stay longer and see more.
There is good demand for the pass, agreed Yen Thing, tours consultant of Boustead Travel Services, Malaysia as the pass also features attractive discounts for youths and adults and is free for kids below 16 years old, among perks.
Feliz Gracielle Axalan, marketing executive, Tradewings Tours & Travel, Philippines, foresees ample potential for Switzerland from the new and small Philippine market which still “lacks awareness” of the destination.
She said that Switzerland’s continued marketing and promotions would unlock opportunities in groups, corporates, students travelling on semester breaks and young employees going on summer vacations.
Another new market, Vietnam, is still small but there is potential including for luxury travel, said Dang Tran Thuc Doan, director of strategic planning for Tourist Service & Trading Corp.
In Asia, Switzerland Tourism works largely with the travel trade and its director of South-east Asia, Ivan Breiter, said it “can help with pricing” by advising agents to step up sales during the low and shoulder seasons, and during weekdays, when rates are lower.
Breiter said 40 per cent of tourists from South-east Asia were generated during the shoulder season.
This article was first published in TTG Asia, January 8, 2016 issue, on page 14. To read more, please view our digital edition or click here to subscribe.
