"Climate change impacts the entire tourism industry"

Tourism plays a vital role in the economies of Swiss mountain regions. How can the lasting success of this industry be ensured? Jürg Schmid, an industry expert and president of Grisons Tourism, shares his insights.

The tourism sector accounts for approximately 20% of the GDP in Alpine areas and contributes to 25% of employment, either directly or indirectly. However, climate changes and the ongoing decline in snowfall challenge the economic model of many mountain resorts. Jürg Schmid, a partner in a specialized strategy and communication agency and the president of Grisons Tourism, remains optimistic about the future of the industry.

Tourism represents a crucial element in the economy of Swiss mountain regions. How do you perceive the future of the sector?

Jürg Schmid: Conflicts, migration challenges, energy shortages... We've seen more peaceful times. Nevertheless, I remain confident in the future of alpine tourism. Many global, social, and tourism trends support destinations close to nature—both active and relaxing. Moreover, our industry has shown great resilience in recent years.

Today, tourism is about experiencing meaningful moments. Values, attention, time in the broader sense, as well as personal time for oneself, one's partner, family, and grandchildren—these are the new aspirations of travelers. Swiss destinations blend outdoor experiences with cutting-edge infrastructure, connected by the world's best public transportation. Our valleys and alpine sites provide a solid foundation in tune with the spirit of our time.

The prospects for the future remain promising. However, increasing costs, labor shortages, and shorter peak visitation periods are impacting the investment capacity of tourism businesses.

Is it essential to develop year-round tourism to ensure the sustainability of mountain destinations?

Schmid: Our cost structures demand extended periods of high visitation. Our hotels, restaurants, and retail establishments cannot survive on the winter season alone. Therefore, we must focus on increasing occupancy rates in summer and fall. In this regard, the increased internationalization of our clientele is crucial. The strong Swiss Franc does not make us more attractive in neighboring countries.

What other factors can be considered to address the current challenges?

Schmid: Climate change has an impact on the entire industry, affecting both supply and demand. It complicates winter snow conditions. Conversely, summers become more attractive as not everyone enjoys constant 40-degree temperatures; in an aging society, alpine freshness gains appeal. I also anticipate medium and long-term seasonal changes in the Mediterranean region, with reduced attractiveness in summer and strengthened appeal in spring and fall. However, the decisive factor for choosing a destination remains the on-site experience, which must be enjoyable and consistently enhanced and developed.

What strategies do you recommend to your agency's clients for mountain destinations?

Schmid: We support tourist destinations in their choice of positioning, direction, and priorities. Too often, the temptation is great to try to please everyone. Local stakeholders' demands in this regard are often very strong. Our goal is to methodically identify the true strengths and promising assets of a resort. Snow is white, and the mountainous panorama is majestic in almost every winter destination. The challenge is to overcome this interchangeability.

How does a project of this kind unfold?

Schmid: It's almost always the top-performing students who realize that only continuous improvement allows them to remain competitive. The awareness that the environment is changing – whether it's the climate, customer needs, or the variety of offerings – is almost always the starting point for a new project.

An external examination of the strategy allows for an unbiased integration of all requirements and opinions. Our approach involves identifying customer flows, i.e., the primary reasons for travel that influence choosing one destination over another. We assess these reasons based on potential, size, utility, sustainability, and viability. A destination cannot and should not cater to all customer segments. Instead, its goal should be to excel and be more visible to specific customer groups.

What is the most important factor for the success of a tourism strategy?

Schmid: Listening is the key to success. The most in-depth knowledge is found on the ground. That's why we always involve local stakeholders. It's especially about gathering and incorporating the perspectives and opinions of those who have a different viewpoint from the majority, as well as second-home owners, as they bring insider insights with an external perspective.


Information

Biography

Jürg Schmid, partner at Schmid Pelli & Partner

Jürg Schmid is a partner at the strategy and communication agency Schmid Pelli & Partner. Additionally, he serves as the president of Grisons Tourism, the tourism promotion organization of the canton, and chairman of the board of The Living Circle hotel group. Previously, he notably led Switzerland’s Tourism.

Last modification 06.02.2024

Top of page

News and useful information for founders and entrepreneurs.
https://www.kmu.admin.ch/content/kmu/en/home/New/interview/2024/climate-change-impacts-the-entire-tourism-industry.html