Switzerland Country Analysis
6 Total Contribution Travel and Tourism contributions to the Economy and GDP………………7 Direct Contribution of Tourism to Economy……………………………………………. 8 Direct Contribution of Tourism to GDP…………………………………………. 8 Percentage of the Whole Employment……………………………………………………. ……9 Visitor Export and Investment………………………………………………………………. …9 Percentage Visitor Exports As Percent of Total Export…………………………………. It has two capital city, one being Bern and the economic city Zurich. It is surrounded by several countries. It is landlocked due lack of boarder with any water body. The major industries in the country are Tourism, Agriculture, pharmaceutical watches, wine and fashion accessories. The country has a population of about 8 million people with a 3% unemployment rate (Fozer and Mizsey, 2017). In the recent years, Travel and Tourist has improved in terms of growth not only in Switzerland but all over the world.
This growth has encompassed many sectors of the economy such as banking sector, manufacturing, agricultural sector and even health sector. The increase in number Multinational Companies has also has been rising since 2013 at an estimated 2% per year. This has also been detected in the national GDP which has increased with a significant margin of 1. This is due to increased country’s exports from this sector which has created a handful of opportunities. Direct contribution of Travel and Tourism to the Economy This is the spending of tourists in Switzerland this is inflicted by residents and tourists who promote the leisure and tourism industries. It also includes the government spending which impacts directly the tourism industry like museums and national parks maintenance.
Source:www. wttc. org Total contribution of Travel and Tourism to the Switzerland Economy This usually has a huge impact on the economy through GDP and creation of employment. The gulf region is becoming an attractive tourist site as a result of the government initiating Swiss airlines that operates three times a week to countries such as Germany and Brazil Important Notes on the Graphs and pie charts ALL Vertical Axis- represent 2016 constant Prices and exchange rates(fixed) ALL Horizontal Axis- represent time in Years ie. All values on the Vertical Axis are in CHf billions hence ‘000’ Sources: World Travel and Tourism Council (WTTC) statistics/www. wttc. org Switzerland: Total Contribution Travel and Tourism contributions to the Economy and GDP Source: World Travel and Tourism Council (WTTC) statistics/www.
wttc. org Visitor Export and Investment Visitor Export. The foreign tourist who visited Switzerland spent a substantial amount of money in the country. It was estimated the total expenditure was 18901 millions in visitor export. The expenditure is expected to increase as the prospect of increased arrival has been estimated to be higher in the coming years. In ten years the expenditure is expected to hit 28000 million dollars mark (wttc. This is due to various investments especially on restaurants, transport and even in technology to support tourists’ life in Switzerland. In additional investment on labor, especially funding for training of tourists related profession and training of management teams in the hospitality and transport sector. For instance, the beautification of tourists’ sites is also part of the capital investment which is the government initiative.
This is evidenced from the progressive growth of the country’s total GDP per year i. e. in 2017. This is expected to increase at a rate of 3% by the year 2025(wttc. org, 2017). Source: World Travel and Tourism Council (WTTC) statistics Blue- Business Spending amounting to 19% Red-Leisure spending amounting to 81% The Outbound visitors/foreign visitors These are the tourists who are total foreigners, they are non citizen, and they include, Chinese, American, Germany and the rest from different parts of the world. They visit the country with different motives; some come for leisure tour while others visit for commercial purposes. The growth is projected to continue up to 2025 (businesswire, 2018). The improved technology which will lead to automating most of the manufacturing sectors in the industry.
The growth success will depend on various strategies which should be followed. They include: Driving Customer Involvement. This will involve using global network in customer relationship management. The robotic industry will reap more benefits to availability of new skills in the industry, pharmaceutical companies will also reap heavily due to innovations which will end up improving their products. Market information will be easier to access due to invention of applications which can analyze the market and even perform commercial services(Evenett, S. J, 2016). The automated marketing channels of distribution and the long adjustment periods in the economy will make the projected growth of the industry achievable. Moreover, the a availability of technology at relatively low cost will be of much benefit to the small firms as they will get an opportunity to upgrade and play in the league of market leaders.
This will create a high global market opportunity in the country of about 34% by 2025. Multinational Companies in Switzerland (MCNs) As the most competitive economy in the world, Switzerland creates a conducive environment for MNCS to thrive; its central location in the Europe continent has placed it strategically enabling investments. Switzerland has the best universities in the world. Their graduates are thoroughly instilled with professionalism with the thorough research they do in their courses. The highly trained workforce ensures they are recruited to work in the MNCs firms. This could be by educating the firm the geographical make up of the environment including weather and the social consumption patterns of the target group. Strategic alliance This has made Swiss to prosper technologically due to aligning with other firms which are more technologically advanced.
This ensures the exchange of knowhow and ideas. This leads to the growth of Switzerland technologically. Foreign joint venture This ensures the development of an MNC through the combination of forces between Swiss firm and a host. This allows one to one basis of the firm handling its core business activities and control of its brand. Switzerland grants permission to the MCNs in the country to have control of their exporting markets, firms are able to export goods and services desired countries without interferences from the government as long they have paid the relevant tax. Franchising. In this case a firm pays a relatively small agreed upon fee and royalties to the firm that is initial owner of the trademark. The firm should have a good reputation and unique brand recognition.
Direct exporting has been made easier for firms to enter in the Switzerland market. Some small firms have formed alliances and pooled up their products and services making them reduce the risks and costs associated with international markets. They have made to penetrate the market and sell their commodities through existing distribution channels in the market. The improved technology in Switzerland has enhanced and promoted the direct exporting by making the exporting documents more accessible and easier to process (Hollenstein and Berger, 2015). The government has also promoted free and fair advertising of goods and services in the markets, which has offered fair chances to all firms. For example, the pharmaceutical Novartis Company has formed a strategic alliance with the market suppliers, source of raw material firm in Kenya, and Chinese companies to outsource, produce, test and distribute its products (Evenett, 2016).
In the long run, the company has emerged among the top companies not only in Switzerland but worldwide. Conclusion From the Analysis, Travel and Tourism industry is of paramount importance to Switzerland as a country. It has both direct and indirect contributions to the country’s GDP. The total tourist export is higher by far compared to the total import to the country. This has also increase the amount of exports from the country. There entrance has been facilitated by friendly laws and taxes, moreover, the unlimited barriers of entry to the industry. The favorable tax has enabled the firms to make adequate profits hence attracting more firms in the industry. However, the government should put in place tough laws to ensure employees rights are adhered to and to prevent consumer manipulation through production of counterfeit goods.
Recommendation Switzerland has four official languages but only two are practiced by the citizens. This ensures ha social security consideration and healthcare associated costs are high. The need to adapt strategies to make migration easier will enhance outsourcing of labor. References Fozer and Mizsey, (2017). Life cycle, PESTLE and Multi-Criteria Decision Analysis of CCS process alternatives. Journal of Cleaner Production, 147, 75-85. com, (2018)’Switzerland Travel and Tourism Industries (2018). ’ Retrieved March 9, 2018, from https//www. businesswire. com/Research-Markets-Travel-Tourism-Switzerland-2018 wttc. org, (2017). ’Retrieved March 7, 2018, from https//www. statista. org/topics/962/global –tourism Kraus and Cesinger. Distance and perceptions of risk in internationalization decisions. Journal of Business Research, 68(7), 1501-1505. Outward R&D Spillovers in the Home Country: The Role of Reverse Knowledge Transfer. In breaking up the Global Value Chain: Opportunities and Consequences (pp.
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