SAINT MORITZ // Switzerland’s most exclusive ski resort, Saint Moritz, boasts stunning snow-laden peaks, iconic hotels – and Russians.
Undeterred by the rouble crisis following Western sanctions in the wake of Moscow’s annexation of Crimea, the loyal Russian clientele of one of the world’s most glamorous winter resorts say nothing will make them go elsewhere.
“I have been coming here for 10 years and I am not ready to change my habits,” said Leonid, a 47-year-old based in London’s financial district.
Although other parts of Switzerland have seen a drop in Russian arrivals of up to 30 per cent, Saint Moritz is practically untouched.
That could all change, however, after Switzerland’s central bank scrapped a three-year proposal to hold down the value of its currency on Thursday, sending the swiss franc soaring against the euro and dollar.
The shock move has made the already costly country 15 per cent more expensive for foreigners overnight.
“Thursday marked the beginning of a difficult period for Swiss tourism,” said Veronique Kanel, a spokeswoman for the country’s national tourism organisation, adding that she expected an increase in cancellations.
But earlier in the week, Leonid seemed carefree.
Sitting at the upscale Mathis restaurant along with his wife and two children, he ordered four truffle pizzas at 98 Swiss francs (Dh418.5) a piece.
They are on a long free-spending holiday and, like many other well-heeled Russians, are unfazed by the financial crisis back home.
Saint Moritz locals, meanwhile, are laughing all the way to the bank.
“A crisis? I have between five and 10 per cent more Russian clients than usual. They account for two-thirds of my current turnover,” said Reto Mathis, head of the high-end restaurant, which specialises in caviar and truffles.
Russia’s national currency has lost some 16 per cent of its value against the US dollar since the start of the year. This is after its value plummeted around 41 per cent in 2014 due to the sanctions and tumbling oil prices.
Many Russians have seen the value of their assets and their incomes plunge, but those with holdings in euros and dollars have not been affected.
“With our nine five-star hotels, we offer our clients the best services possible,” said Ariane Ehrat, head of the tourism office for the Engadin-St Moritz region.
The origins of Saint Moritz as a winter resort date back to September 1864, when local hotel pioneer Johannes Badrutt made a wager with four British summer guests: they should return in winter and, in the event that the town was not to their liking, he would reimburse their travel costs.
That paved the way for a slew of firsts in St Moritz: the first electric arc lamps in Switzerland were installed in 1878 at the Kulm Hotel, the first curling tournament on the continent was held here in 1880, followed by the first European Ice-Skating Championships in 1882.
The Kulm Hotel, built in 1856 and offering stunning lakeside and mountain views, is one of the world’s most luxurious hotels. Its director, Heinz Hunkeler, says he expects to see no more than an eight per cent cancellation rate among Russians this season.
“Our clients certainly have the means but some have remained in Sochi out of patriotism,” he said, referring to the Caucasus resort city which hosted the Winter Olympics last February.
Lesser known St Moritz establishments, such as the three star Piz Hotel echoed that optimism.
“I’m not sure we will feel any impact – in any case, it will be less than eight per cent,” said the hotel’s managing director, Guler Bozkirac.
But the soaring of the swiss franc could prove a major deterrent for less well-off tourists.
Last year, Russian tourists notched up 578,656 overnight stays in Swiss hotels – with about half of them recorded in the winter season.
But this winter, Swiss Tourism expects that figure to fall by between 10 and 30 per cent against the same season last year.
The body is now targeting tourists from other countries who have recently been flocking to Switzerland in droves, including China, Brazil and Gulf countries.
* Agence France-Presse
