Tourism of Valais,Switzerland - Research Paper Example

Contents Feasibility Study/Business Plan: Tourism of Valais, Switzerland Positioning of the region within the Swiss market Both international and domestic tourism play important roles in the economy of Switzerland. The total revenue in 2005 was CHF 30.4 billion and 61 percent (18.4 billion) came from domestic tourism. In the same period (2005), foreign tourist expenditure added approximately CHF 12 billion (Schweizer Tourismus-Verband, 2008). Valais is one of the tourist regions in Switzerland and it is located on the South-West of Switzerland. Valais stretches along the thin ribbon of Rhone Valley between Rhone Glacier and Lake Geneva (the stretch is 150 km). There are various holiday destinations in Valais and they mirror its diversity of landscape, its flora and fauna and its culture (Cvent, 2011). Of great importance is Mayens de Chamoson; the area has a landscape suitable for all walkers whether on snowshoes, on foot, or country skiing (Valaistourism, 2011). In 2008, the number of overnight stays in Valais was 4.6 million tourists. In the same year, the hotel industry in Valais had a capacity of 14,349 rooms and 29,087 beds. Overnig ht stays in hotels in Valais in 2008 were 4.6 million. Occupancy rate was 54.3 percent and 47.0 percent for rooms and beds respectively. The number of campsites in Valais in the year 2008 was 6,200 (Schweizer Tourismus-Verband, 2008). Competition is high in Chamoson; there are over 21 hotels in the region (Booking.com, 2011). This indicates that there will be strong competition from the other hotels in the region. Considering that Valais was the second most preferred tourist destination in 2010 with a general increase in tourist expenditures there are great prospects of more tourist arrivals in the area in the coming years. The table 1 below shows the position of various domestic tourist destinations relative to one another. As can be seen from the statistics, Valais had the highest number of domestic tourists in 2010 although this has been a reduction from previous year statistics. Valais, Switzerland Tourism Area Life Cycle and Stage Motivations Courtesy of Euromonitor Figure 1: The talc model Courtesy of destinationrecovery.com Every tourism area undergoes a lifecycle that mainly consists of the exploration, involvement, development, consolidation, stagnation and rejuvenation or decline stages. The involvement stage saw the establishment of a few hotels and the significant growth in the number of tourist arrivals in the destination. The domestic and German markets were the most popular at this time. The development stage saw the involvement of government and private developers in the establishment of infrastructure such as roads, airports and railway networks and expensive facilities for the expansion of the tourism sector. The consolidation stage was characterized by the improvement of infrastructure and tourist facilities so as to boost the tourism economy of the area. Over the last six years, the tourism sector has been on the decline stage with tourist arrivals reducing almost every year and the balance of payment only slightly improving. Valais has gone through most of the stages of the TALC model. At the exploration stage, locals especially enjoyed the natural environment the number of tourist arrivals being quite low. Considering domestic tourist arrivals as shown in table one, it is evident that for the last six years beginning 2005 and ending in 2010, the popularity of Valais has been on the steady decline. This state of events is mainly as a result of the destination having reached a point of unsustainable development. The destination generally seems to be congested with little room for development. The destination thus needs to be revitalized if it has to remain a preferred destination. The destination has previously been very popular, up to the previous year (2010) being the second most preferred destination. The situation of Valais’ decline is evident in the fact that even measures taken to boost arrivals are bound to fail. Furthermore, the interesting attractions of the area seem to have all been discovered and exploited. Yet again, the global financial crisis impacted negatively the economy of Switzerland and the tourist sector had an unfavorable experience as a result. Decision Making Driven Suggestions to Boost Tourism in Valais Although Valais as a tourist destination has been on the decline stage of its lifecycle, this trend can be changed by rejuvenating its attractions. While the destination has witnessed significant decline in domestic tourist arrivals over the last couple of years, this situation may have been contributed by the recent global financial crisis. There is therefore hope that with the effects of the crisis declining, the tourism sector of Switzerland and Valais especially will recuperate from past losses. With Eastern Switzerland expected to remain a dynamic destination of Germans, Chinese and the French, there is need to revitalize the Valais as a tourist destination to harness its potential as a preferred destination. Yet again, the natural beauty of the place has been preserved and may need little in capital to set it on the right course. Considering the need for more accommodation and leisure spots, the rezoning of the Mayens de Chamoson is a welcome move as it will provide a new experience to the tourists. Key Market Segment Switzerland enjoys the visit of tourists from both local and international destinations. The two main purposes for tourism include business and leisure. Some of the most common activities that tourists in the country enjoy doing include hiking, jogging, Walking and skiing. Others like to attend Swiss festivals while enjoying the natural environment. According to Euromonitor forecasts, leisure tourism is bound to grow with greater leaps compared to business tourism between 2010 and 2015. While tourists in Switzerland come from various countries, the main contributors include France, Italy, China, Russia, India, USA and Germany among others. However, according to Tagesanzeiger, a Swiss newspaper, Russian tourists remain the least popular (Euromotor International3 2011). They are followed by German and British tourists (Euromotor International3 2011). According to Euromotor International2 (2011), German tourists are the main market for the Swiss tourism sector. In 2010 alone, this group accounted for CHF 3.4 billion (Euromotor International1 2011), close to 4,497,000 million tourists visiting the country then. Yet again, the other major market for the Switzerland as a tourist destination is Italy and France going by current tourism trends. Positive factors for the market segment Germany being a country that borders Switzerland contributes the major portion of international tourists to Valais. The German market for the Swiss tourism sector is bound to grow steadily between 2010 and 2015 giving a significant promise to destinations such as Valais (Euromotor International1 2011). Similarly, China and France are promising markets for Switzerland. Switzerland has an unfavorable balance of payment in the tourist sector and is currently recovering from the effects of the global financial crisis. However, the trend in this respect is reassuring giving hope for growth in the future if the tourist destinations are well positioned. Germany, France and Italy as potential markets for Valais enjoy a stable political and economic environment and have stable currencies. China on the other had is established to be Switzerlands fastest growing inbound tourist market (Euromotor International3 2011). Negative factors for the market segment The financial crisis has affected tourists’ spending trends in countries such as Germany, and France. Being countries whose economies are significantly affected by happenings in the Western world, Germany and France may be slow in their recovery from the financial crisis as compared to countries outside Europe and the Americas. This means that there is a high chance that these markets may stagnate if the crisis continues to bite their economies. Yet again, the competition for these markets by various countries and tourist destinations is high making the market highly volatile and susceptible to change. Theme of the Hotel The theme of the proposed project should match with the landscape of Valais. Valais is located in the countryside and most of the hotels in this area have historical importance or historical connections. Harper (2008) indicates that country hotels are often located close to or in places of outstanding beauty or historical importance. Valais is an area with an outstanding beauty and in order for the hotel to match with the countryside beauty, it will have the older properties that are fully modernized and maintained to the high standards. In other words, the design of the hotel will be ancient, but furnished with modern technology such as internet connectivity, television, and telephone services. Majority of the people who live in Valais are French and there are many historical connections and culture. These two elements will influence the theme of the hotel. The theme of the hotel will be dominated by French decorations and themes. The interior and exterior furnishing will reflect the French culture. References Booking.com. (2011). 21 hotels found in or near Chamoson. Retrieved from http://www.booking.com/searchresults.en-gb.html?aid=303948;label=chamoson-rHMK%2ACWOG06hi7dp5SjhlgS7486315341;sid=b7d9e0985ec1627ca09b63b20b8c4676;city=-2551564 Cvent. (2011). Valais tourism. Retrieved from http://www.cvent.com/rfp/valais-hotels/valais-tourism/venue-c72c4da618a9417182a5682d1c39fb5c.aspx Euromonitor International1 (April 2011) Country Sector Briefing: Tourism Flows Domestic – Switzerland. Euromonitor International. Euromonitor International2 (April 2011). Tourism Flows Inbound – Switzerland. Euromonitor International. Euromonitor International3 (April 2011). Travel and Tourism – Switzerland. Euromonitor International. Harper, D. (2008). Valuation of hotels for investors. London, UK: Taylor & Francis. Schweizer Tourismus-Verband. (2008). Swiss tourism in figures. Langgass Druck, AG: Author. Valaistourism. (2011). Chamoson – Saint-Pierre-de-Clages. 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