Swiss Review 4/2020

Swiss Review / July 2020 / No.4 17 Holiday advice from Finance Minister Ueli Maurer The federal parliament has approved a 40-million-franc loan for the belea- guered industry. Thismoneywill fund marketing campaigns aimed at en- couraging tourismin Switzerland. The Federal Council has not planned any special bailout measures. Instead, the government has asked people to show solidarity. “Go on a staycation and spend yourmoney in Switzerland,” be- seeched the finance minister, Ueli Maurer (SVP). The next few months will prove whether we have listened, given that other European countries will also have beendoing their utmost to attract holidaymakers. With Schengen states due to lift internal border controls on 15 June, some Swiss will also fancy go- ing on another beach holiday. At the same time, Swiss hotelierswill hope to welcome more foreign guests. ‘Clean & Safe’ in Switzerland Meanwhile, SwitzerlandTourismhave launched the ‘Clean & Safe’ label – a campaign aimed at cementing Swit- zerland’s reputation among foreign anddomestic holidaymakers as a clean and safe holiday destination. Hotels and tourism providers will use the la- bel to indicate to customers that Swit- zerland also offers security and good healthcare in addition to pristine land- scapes. Businesses that have imple- mented a safety plan in accordance with Federal Office of Public Health guidelineswill be allowed to carry the label. Competitive pricing but lower revenue Apart from the job of gaining trust, pricing will also play a role. Many des- tinations are running special offers. For example, Jungfrau Railways have a ‘Corona Pass’ which they hope will attract visitors from Switzerland. De- spite the expected decline in revenue, Kessler believes that his companywill “emerge from the crisis stronger than ever”. He says that 2021 will be a tran- sitional year before things return to normal in 2022. Tourismexperts from theUniversity of St. Gallenbelieve that it will take almost three years for in- ternational travel to recover. Billions in aid for the Swiss aviation sector The travel ban has left many airlines in financial straits – including domestic carriers Swiss and Edelweiss, whose planes have been grounded for months. Switzerland is providing its airlines with aid in the form of state guarantees worth up to 1.875 billion Swiss francs. This package includes around 1.2 billion francs in bank loans for Swiss and Edelweiss as well as 600 million francs for companies providing airline-related services such as cargo and baggage handling, maintenance, and catering. The companies assisted in the govern- ment bailout are not permitted to pay out dividends until the assistance has been repaid. These busi- nesses must also adhere to government climate targets. The money is intended to help Switzer- land’s airlines survive the coronavirus crisis and ensure that they continue operating. Swiss is a subsidiary of Lufthansa, which the German gov- ernment plans to bail out with a 9-billion-euro rescue package. (TP)