From Alps to Ritz: How wealthy shaping Switzerland’s tourism scene

In a recent article, BBC highlights that while global instability rattles many people, the rich are only getting richer, fueling a surge in demand for the ultimate luxury experience. And nowhere is this trend more evident than in Switzerland, where five-star hotels and exclusive resorts are booming.

Switzerland, a country long known for its understated luxury, is seeing an increase in five-star hotels, as demand for exclusive experiences continues to rise. These hotels, many of which date back to the early 20th century and were originally built to accommodate affluent tourists, have been renovated to meet the highest standards. Luxury spas, gourmet restaurants, and designer suites with panoramic views of the Alps have become staples of the Swiss experience. Some hotels even offer "ski butlers" who transport guests to and from the slopes and help with their equipment.

The demand for these luxury experiences comes from markets in the US, the Gulf States, China, and Southeast Asia, with American guests particularly expecting the ultimate five-star treatment, including 24-hour room service. China and India are emerging as significant markets, and Switzerland is keen to tap into this new source of wealth.

However, the luxury experience comes at a steep price. So, what about those who aren’t billionaires? Markus Berger from Switzerland Tourism notes that while the country focuses on high-end clientele, it takes a balanced approach based on the economic impact of this sector. Stays at five-star hotels account for just 8 per cent of total overnight stays, yet these guests contribute at least 25 per cent of Switzerland’s tourism revenue.

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

Despite this focus on luxury, Berger emphasizes that Switzerland cannot compete with neighboring countries that offer cheaper alternatives, especially in light of the strong Swiss franc. "Switzerland has never tried to compete over prices," he adds. "There is always somewhere cheaper."

Instead, Switzerland focuses on quality, service, and value, such as the ski butlers. This model also benefits the broader economy, as wealthy guests spend lavishly in Michelin-starred restaurants and boutique shops that have become common in Swiss alpine resorts.

However, there are concerns about the impact of rising luxury accommodations on local communities. In famous resorts like St. Moritz and Zermatt, residents worry that the high-end focus is pricing locals out of the market. Hotel and restaurant staff, essential for providing five-star service, often struggle to find affordable housing and must commute long distances from neighboring villages.

Monika Bandi, head of the Tourism Research Unit at Bern University’s Centre for Regional Development, calls Switzerland’s approach a "delicate balancing act," arguing that it’s not about increasing the number of tourists but about boosting the spending power of existing visitors. She cautions that there is a "tipping point" where the character of these destinations could be lost.

This debate is especially relevant in Wengen, a resort renowned for its Lauberhorn ski race and its connection to British skiers. This year, Wengen is opening its first-ever five-star hotel and plans to introduce serviced luxury apartments for sale to wealthy tourists. These apartments will also be available for rent when the owners are absent. However, critics, including the Swiss Heritage Society, argue that this project is not truly a hotel, claiming it looks more like a holiday home complex that lacks integration with the local community.

By Naila Huseynova