Switzerland targets rich tourists but at what cost?

The world is a very insecure place right now – conflict, climate change, and fears of recession dominate the headlines. But for some people, things are going rather well – the wealthy.

Despite the global turmoil, the number of billionaires in the world is growing and the personal wealth of each of them is increasing too.

So what to do with all that money? The growing trend for the ultimate luxury experience is a clue as to what the very rich are doing with their cash. For the tourist industry in particular, it’s an opportunity.

In Switzerland, which has long cultivated a reputation for understated luxury, the number of five-star hotels is increasing faster than any other category. Many of them were built in the early 20th century – grand belle epoque palaces serving a then emerging class of privileged, primarily English tourists.

Today, renovated to the highest standards, those hotels leave no guest’s wish unmet. There are luxury spas, gourmet restaurants, and designer suites with panoramic views of the alps. Some offer “ski butlers” to ferry guests to and from the slopes, carry the skis, and even help put on their boots.

Key markets are the US, the Gulf states, China and South East Asia. American guests in particular, Swiss hoteliers say, expect the full five-star treatment, including 24-hour room service, so that they can order food in the middle of the night.

Meanwhile, China and India are emerging markets, where the first groups to travel from those two countries are among the wealthiest. Switzerland is very keen to get in at the start of that trend.

But the five-star offer comes with a hefty price tag, so where does that leave those who are not billionaires? Markus Berger of Switzerland Tourism says the strategy is not to focus solely on high-end guests, but to take a hard-headed look at the figures.

Stays at Swiss five-star hotels make up around 8% of all overnights, but the guests in them contribute at least 25% of Switzerland’s total revenue from tourism.

“The numbers speak for themselves,” says Mr Berger. “The high economic significance justifies a commitment to luxury guests.”