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Tourism has stalled in Geneva

Unsurprisingly, the tourism encephalogram has shown virtually no signs of life since March. According to a new estimate released Friday by HES-SO Valais, the shortfall between March and June will be around 8.7 billion francs for the entire industry in Switzerland. In a first study carried out in March, the loss was estimated at 6.4 billion francs.

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No less than 60% of the 3,518 providers who responded to the survey decided to prefer to close their shops until the recovery, while another 22% reduced their activity rate. “A closed hotel hurts.” Christophe Ming has decided to continue operating the Astra Hotel Vevey which he manages with his brother. Demand was weak, despite the quick initiative to make rooms available for telework. “We count requests on the fingers of one hand,” notes the hotelier, who specifies that the goal was not to do business: “Staying open allowed us to be present, to communicate with customers and collaborators. “

A closed hotel hurts – Christophe Ming, hotelier in Vevey

For example, his establishment welcomed a tourist refugee from Geneva for several weeks. It was impossible for the latter to find accommodation. At the beginning of April, the Geneva hotel association estimated in fact at two thirds the number of establishments closed in the city, a city which achieved 2,182,000 overnight stays in 2019.

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“Alarming results”

Depending on events, congresses and other business trips, urban tourism is undoubtedly paying the highest price for the pandemic, as confirmed by the HES-SO Valais study. A study that presents “alarming results”, worries Adrien Genier, director of the Geneva Tourism and Congress Foundation. In April, the drop in turnover came close to 100% for the city’s tourism players; hotels, for example, had occupancy rates close to 0%.

Co-author of the study, Professor Roland Schegg was not surprised: “Cities were hit earlier than other regions, with, for example, in Geneva the cancellation of major events such as the Motor Show in March. They also sense that major international events will not resume this year. ”

As a result, many hoteliers and event organizers in Geneva expect to continue to post poor results this year. Worse, they may even fear a structural change for business tourism, suggests Roland Schegg: “With proven teleworking, companies could say that ultimately video conferences are an advantageous replacement for part of travel . “

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Debt causing concern

In a much closer future, what worries the director of Geneva Tourism, is the rapid deterioration of the financial situation of hotels and restaurants in the city. “In March, the median debt-to-equity ratio of hotels and restaurants was 15%. Today, it is 49%, says Adrien Genier. And despite the bridging loans, 76.6% of those polled say that they will not be able to cover their fixed costs beyond June. “

Little wonder then that the risk of bankruptcy is much higher than elsewhere. 35% of establishments surveyed believe that their vital prognosis is engaged, compared to 22% at national level. Some 120 tourism providers answered questions from the HES-SO Valais.

“These results will allow us to reinforce the message and to make public authorities aware that the requests are really well founded. Tourism must be supported with solutions other than the only bridge loan. ” The study is timely for tourism circles since the parliament meets on Monday in an extraordinary session to debate sectoral aid to the economy.

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