 "Swiss tourism expects 5% growth from India despite stronger franc")
Last week, Swiss national bank had removed the three-year old exchange rate cap on Swiss franc so that the currency would not be held at a fixed rate to Euro. As a result, Swiss franc strengthened, leading to cancellations of tours into the Alpine country.
Indian tour operators pay their European counterparts for ground transport and hotels in euro in all other countries except Switzerland, where contracts are in Swiss francs.
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Indian tour operators fear there will be cancellations. Some agents have already withdrawn their tour price quotations given last week when the rupee held firm against the franc. The rupee has dropped from Rs 62 to Rs 74 to a franc over the past few weeks.
The rupee traded at 69-70 to a franc for most part of 2013-14, but the Indian currency gained over the past few months trading at 62 to a franc.
However, executives at Switzerland Tourism feel the impact on Indian market will be relatively less. “I am not saying there will be no impact, but it too early to put an estimate,'' said Urs Eberhard, head of markets at Switzerland Tourism. According to him, the impact will be largely seen on arrivals from neighbouring countries such as Germany, whose residents make spontaneous visits to Switzerland.
According to Ritu Sharma, deputy director of Switzerland Tourism, there will be a five per cent growth in 2015. She said Switzerland Tourism is now promoting a grand tour covering the entire country.
Last year, 350,000 Indian tourists had visited Switzerland — a growth of three per cent. In previous years, the country saw double-digit growth in Indian visitors, but volumes fell because of economic slowdown.