Subsidies despite overtourism: Switzerland Tourism struggles for legitimacy and fails to relieve tourist hotspots

Switzerland Tourism (ST), the country's official tourism promotion agency, is under scrutiny for its effectiveness in managing tourist flows. Despite receiving substantial state funding – 60 million Swiss francs last year alone – the organization is criticized for failing to deliver on its promise of better distributing visitors, thereby not alleviating overtourism in popular hotspots.

ST's mandate is to attract additional guests to Switzerland, but in recent years, the organization has adapted its strategy and communication in response to growing public skepticism about overtourism. The new approach, articulated by Director Martin Nydegger in early 2024, is to "bring the right guests at the right time to the right destinations." However, an analysis by NZZ am Sonntag indicates that two and a half years into this strategy, the goal remains unmet.

The analysis of overnight stay statistics reveals no discernible improvement in the spatial or temporal distribution of tourists. Instead, the data suggests that major destinations have further consolidated their lead. The 50 largest destinations saw an increase of 1.7 million overnight stays (over 6 percent growth) compared to 2023, while approximately 130 smaller destinations experienced less than 2 percent growth, adding only 129,000 overnight stays. This trend directly contradicts the objective of better distribution.

This lack of progress raises questions about the tourism industry's ability to genuinely steer visitor flows or if the new strategy merely serves as a justification for continued state subsidies. The situation is politically delicate, as the State Secretariat for Economic Affairs (SECO) ties its funding to specific conditions, including the improved distribution of tourists. The failure to meet this condition could jeopardize future financial support.

Meanwhile, local authorities are implementing measures to combat overtourism. The canton of Appenzell Innerrhoden has drastically increased parking fees in the Alpstein region, Lucerne is restricting Airbnb rentals, and Grindelwald plans to halt new hotel developments. These local actions highlight the pressing need for a more effective national strategy to manage the growing pressures of tourism.

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We bring the right guests at the right time to the right destinations.