Swiss hospitality association Gastrosuisse has warned that 3.000 hotels could be at risk of closure due to spiralling energy prices across the country. The organisation is appealing for more support from the Swiss government to help cushion the costs for businesses. 

Gastrosuisse president warns many Swiss businesses will struggle with power costs

According to Le Matin, the president of Gastrosuisse, Casimir Platzer, declared that 3.000 hotels, restaurants and cafés could be at risk of financial collapse as electricity bills soar across Switzerland. While energy is only a small part of a hotel's running costs, the president noted that other costs such as food and salaries are rising as well. 

Many businesses are also still reeling from the after-effects of the COVID-19 pandemic, which saw many firms lose business for weeks on end during lockdowns and closures. Economists told Le Matin that they predict costs for businesses in the sector could be up to 10 times higher now than in 2019, in an industry that has already been battered by the pandemic. 

Electricity prices could rise by up to 600 percent in Europe

In further bad news for hospitality businesses, Schweiz am Wochenende reported at the weekend that energy prices across Europe could rise by between 200 and 600 percent in the coming months. Some establishments have already started to add a surcharge to bills in order to cover the extra energy costs. 

The president of Gastrosuisse has called on the Swiss government to provide financial assistance, in order to save firms from going bankrupt. If the government does not act quickly, the "very existence” of businesses is at stake, according to president Platzer.