No country is away from its effects. The crisis hits an economy through two channels. One is through the financial sector and other through the real sector (IMF, 2009).Many industries and businesses, which were…
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It is organized as follows. Section 2 discusses the international trends regarding the impact of global financial crisis on the performance of luxurious hotels. Section 3 discusses the impact of global financial crisis on the luxurious hotels in Switzerland. Section 4 discusses the impact of global financial crisis on the visits of guests particularly foreign guests in the hotels. Section 5 discusses the impact of global financial crisis on the unemployment trends in the Switzerland hotel market. Section 6 concludes the report.
Since the tourism market, particularly the hotel business is the part of a country’s overall economy, all the major conditions in the overall economy are likely to have an impact on this market also. The trends in the European market show that there has been heavy decline in the investment in the hotel investment market all over Europe .It was the highest in the UK market followed by France and Germany. There has been heavy decline in the hotel occupancies and the unemployment rates all over the European market ((BNP Paribas real estate, 2009).
In Switzerland, tourism is considered as one of the main contributor’s to the country’s wealth and hotel businesses are important components of the tourism industry(OECD,2000). The luxurious hotels in Switzerland have been attracting tourists from all over the world historically. However, in the aftermath of the global financial crisis in 2008, there has been a significant fall in the demand for luxury goods since people had to save money for essential goods like food, housing etc. This has led to a drop down in the luxurious hotel businesses in Switzerland. Hence, though it is reported that the hotel industry in Switzerland has recorded 37 million overnight stays in 12 months at October end greater than the 12 months period in the last year, according to reports ,a 3 percent fall in the overnight stay
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Globalization has accelerated dramatically in the past two decades following the technological advances, which have made it easier for the people to communicate, travel, and carry out business internationally. The two major recent forces, which have actually driven and accelerated globalization, are the rise and expansion of the internet connectivity and the improvement in telecommunication channels.
The bailouts paid to the banks were done at the cost of the living conditions of the people of various countries which are continuously going down and the government policies of the most leading economies of the world are only adding to the problems faced by public in the form of cuts to public spending and wages, reduced jobs and high inflation rates.
As a result of globalization the economic indicators in Sub-Saharan region too have been dependent on cues from US markets. The root cause of the global economic crisis trends can be traced to the borrowings on easy terms by the banks and financial institutions which gradually translated into the mortgage crisis and then started the trend of failure of banks.
The three major tools exercise throughout economic render down are monetary, fiscal along with exchange rate gadgets, to motivate an uncertain economy. Within the monetary policy sphere, the central bank would diminish interest charge and lighten up statutory reserve necessities consequently that banks be able to lend additional, ensuing in improved customer expenses and investment spending which would enhance economic expansion.
Just over three months ago, the Bank of Canada announced in its quarterly Monetary Policy Report that the recession which had hindered Canadian economic development since the start of the global economic crisis was “over”. The Canadian government has played an active role in stimulating the economy during the recent global economic crisis.
The housing market was on the rise and the prices of the houses were steep. When the loans came up for repayment most of them defaulted and the banks lost much of the money. The financial institutions like the Northern Rock were the most affected and their share prices came
The country also boasts of its richness in natural resources that include country having 6% fresh water cover that act as reserves for the Europe. Essentially, Switzerland is the source for a number of European rivers where some
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