Swiss Economy and Outlook 2025/26 in a nutshell (revised in July 2025)
Latest Swiss economic data reflect the present challening economic situation and, at this time, the conlusion of a so-called deal between the US and the EU providing for the introduction of a US imports tax of an average of 15 percent on EU exports. A similar "deal" with Switzerland is pending but is expected to be withtin a comparable frame. Relations with the US, Swiss industries top export market which, at the same time is the nr. 6 top direct investor (providing over 400'000 US jobs) are significant to say the least. The fact that Swiss exports cover, to a rather significant extent, "unique" niche products, may make them somewhat less price sensitive, however. The strong CHF vs. the weak USDO is a futher test for the often mentioned resilience of Switzerlands economy.
Last but not least Switzerland is not a member of the EU the main reason being that the Swiss direct democratic system appears to be hardly compatible with that of the EU resp. its members. A newly negotiated agreement for further integration is ready to be voted by the Swiss. As its content is considered by many a direct attack of Swiss democracy (loss of self determination) it is open whether it will pass the pending referendum.
Switzerlands GDP topped 936 billion USD in 2024 with a modest growth expected for 2025. The per capita income grew from USD 99'564 in 2023 to USD 103'669 in 2024. Inflation dropped to some 1 percent partly due to the strong currency lovering cost of imports. Challenges include the cost of energy, in particular electric power and a sharp lack of qualified manpower. The political stability is also being tested by exploding healthcare cost, insurance premiums as well as immigration which tops some 25 percent of the local population, many from countries with totally different religious and cultural backgrounds. Over 400'000 still cross the borders daily into Switzerland for work from France, Italy and Germany attracted by Swiss salaries which, in same cases are the double of what they make in their home countries.
Comparison of purchasing power per capita (PPP) for 2024 in Euros show the following ranking: Liechtenstein 70'180; Switzerland 52'566; Luxembourg 41'785; Austria 29'266; UK 28'086; Norway 28'072; Germany 27'848; Netherlands 27'558 selection of the top ten)
(Source KOF & SECO)
Recent polls show that the overall outlook is considerably less optimistic than in the past due to the wars, particularly in the Ukraine and the worldwide political and economic uncertainties.
R & D
Investments in R&D at the forefront of technology continue at 3.4 percent of the GDP of which two thirds are private sector financed. On a per capita basis it ranks Switzerland within the worldwide leading nations. The country is also at the top of the list of new patents published by the Intl. Patent Office just recently ETH in Zurich and EPFL in Lausanne rank among the world's leading universities
Financial standing
Switzerland enjoys a financial healthy position compared to most neighboring countries. The national dept, due to Corona and other rising cost e.g. for defense and social programmes rose to 38 percent (in relation to the GDP). Faced by thight budgets as of 2025 it still is looked upon as being in a comfortable position. However, budgetary pressure as of 2026 is growing fast, due to demographic changes (ageing population), social programs and defense.
The Swiss Franc keeps its role as an international “Safe-Haven” currency. In fact it appears to be getting even stronger as a result of the worldwide challenges.
(revised in July 2025)
Profile of Swiss Travellers
The small size of Switzerland and its diversity forced its people as the early days the country's existene to look accros the borders, particularly since the beginning industrialization in the 19th century. Living in a multilingual resp. mulicultural society most Swiss speak one or several languages resp.French, Italian and German.. Cross border business and shopping, travel and close personal relations have a long tradition. A recent study revealed that old established international networks since the 19th century, particularely in Asia, can still be traced back and provide a basis for a functionning business network.. Swiss are ardent travellers as a result and used to follow closely what is happening worldwide. A total of 83.7 percent of the resident population has taken a least one international trip with over 3 overnights in 2024. Out of these each adult booked 1.6 flights (3.2 incl. return) per year, or twice as many as in their neighboring countries. The German speaking Swiss appear to be somewhat more travel-savy than their French or Italian speaking countrymen.
Living in a multiligual (4 official languages, incl. Romantsch) resp. multicultural environment facilitates people to understand, respect and cope with foreign habits and cultures. Language barriers, as a result, tend to be rather low and English e.g. is widely spoken. Swiss tend to be well informed about international politics and relevant issues, particularly in neighboring countries and the US. Incomes and an attractive purchasing power allows them to ecape their "narrow borders" and discover the world. They spent some $ 236.00* per day and person on foreign travel in 2022. Swiss appreciate service, cleanness, punctuality and quality and are willing to pay for it. They like to travel individually or in small groups, enjoy meeting the local population and avoid crowds.
Swiss travel to the US has always been driven, in particular and to a large extent by the rate of exchange. The difference in value (USD/CHF) of some 15-20 percent to the preCorona dollar helps to compensate some of the higher US prices and to some extent even some of the actual negativ media narrative. Statistics proof that political issues such as changing administrations etc. respectively their effect on Swiss travel behavior is being grossly overrated and hard to be measured. Latest figures for the first half of 2025 show 160'313 arrivals. Together with the second half of the year with the traditionally strong months of July, August and September the total of arrivals may come close to 400'000 - approx. the average of the past decade. Still an impressive figure compared to the market size.
Booking behavior: Swiss are sought after clients for their purchasing power, one of the world's highest. 68 percent of all travel in 2023 were booked directly with the "producers" (TO's etc.) and some 35 percent were booked online on other websites. The percentage of totally self-organized trips fluctuates at some 10 percent. Safety and security considerations (e.g. repatriation) seem to have furthered the use of professional services. Long haul and complex travel is often entirely booked via the trade for reasons of comfort. Corona in particular promoted bookings at travel agencies and can still be felt today. German speaking Swiss appear to be more safety minded than their French or Italian speaking counterparts. They tend to accept paying more for quality and service which reflects their purchasing power.. Many young people book at travel agencies to overcome limitations in the use of credit cards
*average exchange rate May 2025 1.00 USD = 0.80 Swiss Francs.
Travel Industry Structure/Data
The structures of Switzerland's travel trade is subject to considerable changes due to Corona and the resulting challenges. It is now struggeling to hire new qualified staff which was lost during the pandemics. Before the pandemics the Switzerland's travel trade consisted of some 1100 so-called Class A and about 450 Class B travel agencies.
Well known companies include:
- Hotelplan Group - Kuoni Travel (DER)
- TUI Suisse - Knecht Reisen AG
- FTI - Globetrotter
- Go2Travel GmbH
Average gross profit margine before Corona was 15.6% (travel agencies). Travel agencies charge their clients a handling resp. counselling fee of some $ 60.00 which may be waived depending the total value of a package.
(Revised in July 2025
The steady growth of Swiss arrivals of annually 7 percent from 2017 to a total of 474'550 by the end of 2019 was brutally interrupted by Corona. Below graphic shows the overall stable market since the year 2000 incl. fluctuations with the alltime record of over 536'000 arrivals in 2015 (probably triggered by the low rate of exchange USD/CHF of 1/0.72 in 2013/14) Takeing into account a resident population of nearly nine million it may be assumed that many have taken several trips to the US per year.
The "Swiss appetite" for travel to the US has been "cooled" somewhat by recent political events resulting also from a widespread negative media narrative. However, the US remains the leading overseas destination of the Swiss as shown by the level of arrivals in the first half of 2025. A total of nearly 400'000 by the end of the year semms to be a realistic estimate. The adventageous rate of exchange of nearly 0.70 CHF to the dollar is attractive.
Looking at the Swiss market it is important to also consider the high purchasing power which shows in the per capita expenditures per day ranking among the world's highest. Profitability vs. quantity.
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Profile of average Swiss traveller to the U.S.
What are Swiss travellers looking for in the U.S.?What are Swiss travellers looking for in the U.S.?
The majority of Swiss enjoy meeting local Americans. They like the easy contact and accessibility. Authenticity is important. Big cities with cultural and sports events, shopping, sightseeing and restaurants are popular. The friendly hospitality of American small town communities and their lifestyle are most appreciated. Cities with a fascinating multiethnical, cultural and historical background like San Francisco, New Orleans, Miami, Boston, Chicago and New York are "musts" as well as nature and wildlife (national parks and forests); native Americans; Western lifestyle (horses, BBQ, dude farms); outdoor activities (jeep tours, river rafting, helicopter rides, biking). In past years the beautifull, little croweded beaches made the US a tempting alternative to traditional beach vacations in Europe or in politically less stable countries. Typical American sports (rodeos, baseball, American football) less known to the Swiss are popular. They enjoy the excitment at such events. American hospitality is an asset and an occasional touch of American nostalgia is appreciated, in particular by people of 45 years of age and more. The Swiss are open to new, less known regions, states and parks - somewhat off the tourist mainstream. This also applies to whole regions, cities, hotels etc. off-the-beaten tracks
Where do they go?
You may find Swiss all over, increasingly off the beaten tracks. They like to travel on their own. Making on-site complementary arrangements is popular - where they like it.. (event bookings, extensions, excursions). . The high percentage of repeat visitors is reflected by the interest in less known or new destinations. Popular states and regions are: New York (NYC) California, South West (AZ, UT, NM, NV), Florida, Alaska, New England States South (FL, GA, SC, LA, KY, TN), Colorado, Wyoming, Montana, Hawaii, Oregon, Wash. State, Texas, Mid-Western States/Great Lake States.
Within Switzerland Promotional Opportunities 2025
USA Island Hopping (former Visit USA Seminar) This well established workshop and exhibit has been created along time ago in cooperation with the major players of the travel trade. The goal was to provide the trade with a cost effective platform to meet and exchange information. The need for a network of true professionals and mutual trust is event more important now than before the IT revolution. The new event format allows partners (destinations & service providers) to systematically present their products to small focussed groups of visitors (rotating from island to island). It is tailored to the requirements of the Swiss market where product knowledge, competence in counselling and quality are the key for successfull selling. Please note that the non-profit promotional resp. educational platforms of the Visit USA Committee have an over 25 years history of in effective promotion and futhering of Swiss travel to the US. The amazing success of Swiss travel to the US. does not demand any further comments.
USA Road Show - (see website. The Road Show is a popular promotional complement of USA Island Hopping to provide additional exposure in a smaller, more personal environment. It covers an average of 5 cities in several days in German and French speaking Switzerland.
Please note that presentations may also be given in English. Authenticity is much appreciated in the Swiss market!
The VUSA Committee sees its role as being complementary to the programs of THE BRAND USA providing cost recovery platforms (no tax money) tailored to the local mentality and specific detailed requirements - the Swiss market consisting of 3 languages and relevant cultures.
