Uri’s economy: Tourism especially drives growth
Blogentry by BAKBASEL (Markus Langenegger / Marc Ryser)
Overall economic conditions worsened during the last year, and this was also felt in the canton of Uri. Growth is expected to accelerate again in 2015. BAKBASEL forecasts economic growth for Uri (+2.0%) in line with that for Switzerland in general (+1.9%). With improving export prospects, growth is expected to be supported more by the industrial sector. Also the energy sector should expand more in 2015 than last year. In the services sector the biggest boost is again expected to come from tourism – in particular due to the developments in Andermatt – as well as from trade.
Growth in regional construction activity is above average
Again this year a large construction project will start in Andermatt, the four-star “Radisson Blu” hotel. At the same time, the construction of the swimming pool and the expansion of the ski area will be tackled. Overall value creation in the construction sector in Uri is expected to grow by 0.8 percent in 2015. This figure might appear low at first glance, but it is well above that for the whole of Switzerland (-1.3%). The decline on the national level is due to the second home initiative, among other factors. Because Andermatt is largely exempt from the second home initiative, the impact of the initiative is less noticeable in the canton of Uri than in other Swiss cantons.
Tourism with strong growth
Tourism in Uri was clearly one of the winners during the last year: The increase in overnight hotel stays in 2014 was above the nationwide average for Switzerland. Uri’s hotel industry performed well in a difficult environment, although the 2014 figures were non-uniform across the canton: While overnight stays in the lowlands of Uri declined, in the Urseren Valley one can speak of significantly above-average growth, thanks to the “Chedi effect”. The rising growth in overnight stays in the canton of Uri not only has implications for the accommodation industry, it also leads to greater demand in the restaurant sector.
Last autumn, two apartment houses in Andermatt were opened for occupancy, and a third will follow in the winter of 2014/2015. This increase in capacity is expected to bring even more guests to Andermatt again this year. BAKBASEL predicts an increase of gross value added of 4.5 percent for Uri’s tourism sector in 2015 (Switzerland overall: +1.6%).
BAK Basel Economics AG (BAKBASEL) is a private and independent economic research institute based in Basel, Switzerland. Since 30 years BAKBASEL has been providing analyses, forecasts and consulting services on an empirical and quantitative level to clients all over Europe. The research focus lies primarily on macroeconomic as well as industry- and region-specific issues, from both a cyclical and structural perspective. Benchmarking studies particularly deal with international comparisons of location quality and economic policy issues. Methodologically, BAKBASEL’s key competences are benchmarking, structural analysis and forecasting. Clients are governments, administrations, associations, foundations and companies.
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