The market mix changed significantly during the pandemic. Before the outbreak, the share of hotel overnight stays from long-haul markets was 24% in 2019 and dropped to as low as 6% during the pandemic in 2020 and 2021. In 2022, overnight stays gradually recovered, resulting in an increase to 16%, mainly because travel was again largely possible without any restrictions from March onwards. However, there were two major exceptions to this trend: In China, one of the most important long-haul markets for Switzerland as a destination, outbound travel remained severely restricted throughout the year due to more restrictive Covid-19 measures. In addition, the Russian market came to a virtual standstill from March 2022 due to the war of aggression against Ukraine.

Switzerland Tourism ST counteracted the pandemic crisis with organisational development. Among other things, it provided for a new market structure to help achieve a balanced market mix of 45% domestic market, 35% short-haul markets and 20% long-haul markets. With this solid and broad base of guests, ST is strengthening its own resilience and agility for upcoming crises.

Not only the worldwide pandemic, but also country-specific events or decisions such as those in Russia or China had shown how quickly the conditions for Swiss tourism can change. Tourism marketing, which is to be as close as possible to the guests, must react quickly and flexibly. Therefore, the market structure was brought even closer to potential guests with new antenna offices.

More customer proximity and shared market management

The markets were newly managed by a Head of Markets West, Gilles Dind, and a Head of Markets East, Simon Bosshart, both of whom are members of the ST Executive Board (Gilles Dind until the end of 2022).

Despite digitalisation, a physical presence in the markets will continue to be key. Local employees understand the local conditions and needs and can identify the platforms and messages on which guests and customers (e.g. tour operators, travel agents, media professionals and content creators) can be reached most effectively at the touchpoints. Examples for this are the market projects Swiss Friends in Korea, the Swiss Winter and Summer Camp Asia, the Chelsea Flower Show in the UK market or the Roadtrip Campaign, among other things with actor Christoph Maria Herbst for Germany.

Market presence and customer proximity will be expanded with the addition of new antenna offices. The antenna offices will be run by individuals whose role is to gain new local customers and test out the potential of their markets within a limited timeframe. The first two antenna offices launched in Lisbon and Manila in early January and early November 2022, respectively. With Riyadh and Tel Aviv, two more antenna offices are to follow in 2023. The plan is to gradually expand from the current 35 to a total of 40 representative offices by the end of 2024. Other potential future markets will be served centrally from the Zurich headquarters.

Definition market groups

Priority markets: 1 million hotel overnight stays and/or a tourism turnover of more than CHF 150 million, at least once in a period of five years. Permanent office and use of the entire marketing mix.

Active markets: Over 100,000 overnight stays, or a median of 375,000 overnight stays. Permanent office with at least one on-site staff member and use of the entire marketing mix.

Antenna markets: Metropolitan area with over 40,000 hotel overnight stays per year in Switzerland. The economic environment continues to evolve, even in the short term. Temporary touchpoints with an on-site staff member, focusing on key media management and key account marketing.

Emerging markets: Metropolitan region with the economic prerequisites to further develop the travel and holiday business for Switzerland. Remote management from headquarters or a market, with selected activities in key account management and key media management.

Heads of Markets Gilles Dind and Simon Bosshart explain the advantages of the new market structure themselves:

Gilles Dind / Simon Bossart

Head of Markets West / Head of Markets East

Gilles Dind and Simon Bosshart, at the start of 2022, you both officially took on management of the markets and implemented the new market structure. Gilles Dind, to what extent can this organisational development strengthen the agility and resilience of ST field offices?

Gilles Dind: A strong presence in the markets is a fundamental element for the success of Swiss tourism. The fact that two managers within the directorate are each in charge of one half of the markets allows a constant and close link between headquarters and our teams on site. In today’s world, which has become so volatile, we are constantly analysing opportunities and have the ability to react quickly. The existing and planned new offices are a clear statement regarding the diversification of our source markets. Because nothing is safe forever.

Simon Bosshart, where do you see the greatest challenges for our markets in the coming year?

Simon Bosshart: On the one hand, it is important to continue to positively influence the recovery in Europe as well as in the domestic market despite new challenges, such as inflation and the energy crisis. In the long-haul markets, we will concentrate on keeping Switzerland in pole position in the highly competitive international arena. To achieve this, we will use the entire range of our marketing mix: with both central and local implementation of our main campaigns, or the Switzerland Travel Mart in Geneva, to name just two examples.

Gilles Dind, how is ST different from its biggest NTO competitors when it comes to market development?

Gilles Dind: Our big opportunity at ST is that we function highly independently and entrepreneurially on a day-to-day basis. Switzerland is a country with a very stable political system. This makes it possible to develop coherent tourism strategies in the medium and long term. Many of our competitors have a more institutionalised way of working, which can be a barrier and lead to more conventional, less effective marketing.