Luxury Hotels In The Swiss Capital Are Struggling With Major Problems
The blinds at the luxury Geneva Hotel Richemond have been closed since July and its gates closed. The reason is the pandemic of a new coronavirus, which usually deprived a busy five-star hotel of well-paying customers. But even after the "catastrophic" summer, luxury hotels in the Swiss capital, which boasts the highest density of hotels in the world, are still struggling with major problems.
Prior to the pandemic, hotels in Geneva, the center of diplomatic and international trade, enjoyed a period of growth. They have seen 3.2 million overnight stays a year in the past two years. This year, however, the hotel sector has been hit by the "tsunami," said Thierry Lavalley, head of the Geneva hotel association, which leads the five-star Fairmont.
Switzerland, which has recorded 50,000 cases of coronavirus infections and almost 1,800 deaths, has avoided imposing as stringent measures as its neighbors. But travel restrictions and the cancellation of most events demanded a high tax from local hotels.
The crisis has affected hotels all over Europe, but in Geneva the situation is particularly critical, as the local clientele consists mainly of foreign traders, bankers, diplomats and various experts.
Individual clients who come for recreation usually make up only a quarter of the total number of guests. The remaining three quarters (75%) of stays are usually booked by participants in congresses and seminars, or summits and meetings organized by the UN and other international institutions.
In the first seven months of the year, the number of overnight stays in Geneva hotels decreased by 63%. Experts estimate that it will fall by 75% for the whole year.
Geneva has 126 hotels that offer 10,000 rooms. Lavalley claims that if the situation does not improve and the government does not lend a helping hand to the hotel, an avalanche of closures and bankruptcies will ensue.
In connection with this "completely unprecedented situation", hotel owners in Geneva and other Swiss cities have called on the federal government and regional authorities to set up a fund to help them stay afloat until the situation improves.
They also called on the authorities to find a better balance between health and economic interests. They pointed to Switzerland's recent decision to include much of France, including Paris, on the Red List, which requires everyone coming from quarantine.