India's Swiss interest likely to dip for a while

Bollywood films, high on locales across Switzerland, might have to go for a change in scene. With Switzerland’s central bank scrapping its cap on the Swiss franc's conversion to the euro, the country’s national currency has appreciated about 20 per cent.

Experts say, with an appreciating currency, there’ll be less money flowing into Switzerland and tourism could be affected in the short term.

The number of Indians travelling from India to other countries, or outbound traffic, has been increasing over the years. The country had outbound traffic of 16.5 million in 2013, a rise of 11.4 per cent over 2012. At 250,000 Indians annually, Switzerland hosted the second highest number from here in Europe, second only to Britain.

The Swiss bank had instituted a policy to cap the franc to the euro at 1.2. With an announcement of quantitative easing likely by the European Central Bank and further depreciation of the euro being possible, these two factors might have forced the policy change. The rupee is 72 to a euro.

Switzerland, traditionally expensive for visitors, is likely to become more so after the move. “Austria is an excellent choice at a much lower bracket but has under-marketed itself,” says Arjun Sharma, managing director, Le Passage to India.

Multiple domestic and international travel agencies Business Standard talked to indicated the cost, even with earlier bookings, would be passed to customers. A five-day package involving Switzerland will set back a traveller by at least €200, claimed tour operators. While growth to the rest of Europe will increase, Switzerland is likely to see a dip in tourist numbers.

“We are expecting to see at least a 15 per cent decline in tourist numbers to Switzerland in the coming months. Even now, people are asking us to scrap Switzerland off their plans, preferring to visit the French Alps instead,” said Subhash Goyal, President, STIC Travel Group.

However, experts are hoping that with an appreciating currency, there could be more traffic from Switzerland to India. The number of Swiss visitors to India was 48,821 in 2013, an increase of 0.9 per cent from 2012.