The city of Zürich is situated at the northern end of the lake of Zürich on Switzerland’s central plain, in the heart of Europe, clustered around the banks of the Limmat river. The city covers a total area of approximately 92 square kilometres, with its highest point 871 metres above sea-level. With 360,000 inhabitants, Zürich is Switzerland’s largest city, and home to the headquarters of most major Swiss companies, outside of the pharmacutical industry.

An important business destination, considered the financial, trading and business capital of Switzerland, Zürich is also known for its culture, cuisine and shopping. The Bahnhofstrasse is renowned as one of the finest shopping streets in the world, featuring all the top fashion designers. Knabenschiessen, a shooting contest for boys ages 12 to 17 is its oldest tradition, while the spring festival, Zürcher Sechseläuten, held every April for the past 650 years, still features 25 of the original artisan and merchant guilds on parade, and signals the official end of winter. 

Tourism

Tourism is Switzerland’s third largest foreign exchange earner accounting for 5.6 percent gross domestic product (GDP), and is estimated to provide employment for nine percent of the population. In Zürich, an estimated SFr1.5 billion of tourist revenues are generated every year.

Zürich records more visitor arrivals and overnights than any other city in Switzerland, due in part to the excellent road, rail and air links to the rest of Europe. Zürich airport is one of the top five international hubs in Europe, and is in the top ten in terms of overall passenger volume. In 1999, there were an estimated 3.3 million overnight stays, 72 percent of which were foreign visitors. Business travellers comprise the majority of visitors to Zürich, accounting for approximately 75 percent of all arrivals, with the main source markets being Switzerland, Germany, USA, UK and Japan.

Hotel Perfomance

Hotels in Zürich enjoy relatively high occupancies, averaging 82.5 percent from January to September 2000. Rooms rates averaged SFr 209.00 for the year, which represents an increase of 6.8 percent over the same period last year.

The strong performance of the hotel sector is reflected in new construction and development. There are over 2,000 rooms expected to be added to the market over the next two years, primarily through investment by large chains such as Accor, Mövenpick, and Hilton.
 

There are however two notable projects not associated with large hotel companies, each breaking new ground in the city. McDonald’s, the American fast food giant, best known for its burgers and fries, is venturing into the hotel industry for the first time with a 211 room property slated to open near the airport in March 2001. ‘Lady’s First’, Zürich’s first women’s only hotel is due to open at the end of the year. Owned by women, designed by women, and staffed by women, this property is open only to women and all males over the the age of twelve are barred.

Outlook

Although Zürich’s tourism is dominated by business travellers, there is a current marketing focus on the leisure segment of the market. The increased popularity of weekend short breaks throughout Europe may help this effort, although the proximity of competing resorts such as Davos and St. Moritz, must also be considered. Expansion of the airport to accommodate increased passenger volume should be completed 2002, and will increase current capacity by 50 percent. In addition the probable bid for the 2010 Winter Olympics, should enhance Zürich’s profile in the eye of potential visitors.

© 2000 Arthur Andersen
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