FACTSHEET 2017 Market Russia

Population 143'400'000

Source market for VS 1.09%

Accommodation Hotellerie

Hotel categories 4 and 5 stars (63.5%)

Seasonality 77% Winter / 23% Summer

Most popular months 1. January 35.5% 2. December 14.6%

Average duration of overnight 2.7 nights (average : 2.2 nights)

Average expenditure per day CHF 230.- (average: CHF 190.-)

Booking behaviour 42.5% B2B rate for the market

Prognosis of market according to ST for CH +5.8% between 2015-2019

Means of transport for travelling to CH Airplane (72.4%)

Means of transport prefered in CH Train (54.7%), car (40.9%)

Information source 1. Word of mouth <65% 2. Guidebooks 3. Internet site of accommodation >30%

Socio-demographic profile

30.5%

46%

23.5%

61.3%

33.7%

5%

0

20

40

60

80

100

16-35 years 36-55 years 56+ years

Ages

Tourists Total Tourists RU

72.7

27.3

84.2

15.8

0

20

40

60

80

100

No family Family

Family situation

Tourists Total Tourists RU

4.8% 11.2%

50.1%

33.9%

0% 4.3%

64.4%

31.3%

0

20

40

60

80

100

0 days 1-7 days 8-120 days >120 days

Planning before trip

Tourists Total Tourists RU

60%

29.5%

10.5%

Loyalty

First-time visitors 2-5 times >5 times

37%

63%

Gender

Male Female

Top KMM

Media

Top KAM

TO

Top 10 destinations and their development of overnights on the market

Development of overnights per touristic region

Destination LN 2015/16 Market share

Zermatt 20’851 53.08

Leukerbad 4’847 12.34

Verbier – Val de Bagnes- La Tzoumaz 4’053 10.31

Crans-Montana 3’572 9.09

Saastal 1’926 4.90

Martigny Région 2’082 5.30

Chablais 198 0.50

Sion-Région 269 0.68

Ovronnaz 107 0.27

Aletsch Arena 365 0.93

Total Wallis 39’278 100%

0

10000

20000

30000

40000

50000

60000

70000

80000

90000

Year Overnights in Valais Change to last year

2016 39’850 -13.1%

2014/2015 49’182 -36.42

2013/2014 77’354 -1.02

2012/2013 78’950 +7.93

2011/2012 73’150 +9.97

2010/2011 66’518 -1.86

Outlook 2015 – 2019 The situation in Russia worries us. In addition to the dramatic fall of the rubel against the euro and the Swiss franc and the feeling that the West is sanctioning Russia unjustly, Russia is now developing significant counterreactions. First, the travel industry in Russia is asked to promote travel within Russia and to Asia, and second, state employees and employees of state- controlled enterprises are asked to refrain from vacations in the West, or then to spend it in Russia itself. The lower wages, the negative economic growth and declining consumer sentiment will all be reflected in the future travel behavior.

Travel to Switzerland declined with more than 40% compared to 2013. Even though Switzerland is a premium destination and remains popular among Russians, we have massively lost especially from the middle class. As of 2017 it will go upwards again and an annual growth of around 4% is possible. But the whole thing is very dependent on the development of the political tensions between the West and Russia, as well as initiated internal structural reforms in the Russian economy, as the price of oil is not likely to recover.

We stay in the market and work on a premium segment as well as on travelers who are looking for a premium experience. We expect a significant drop until 2019 and expect around 390,000 overnight stays in hotels, almost 200,000 less than 2013.

Contacts ST : Natalia Vart, Market Manager Russia, natalia.vart@switzerland.com Maria Makarova, Media Manager, maria.makarova@switzerland.com Svetlana Medoks, Key Account Manager, svetlana.medoks@switzerland.com