The Tourism Industry Life Cycle: Initial Evidence from the Swiss Hotel Industry

We test the stylized facts of the industry life cycle using data from the Swiss hotel industry. Time series concerning the number of firms in the industry and output in terms of overnight stays are used to show that the Swiss hotel industry exhibits some of the typical traits of the life cycle theory. It is found that this industry has had two growth phases and is currently in a declining phase. Lack of meaningful and complete price data limits the analysis. It is suggested that further research needs to be done to examine price, innovation and exit hazard over the life cycle.